NEW DELHI: The
white goods industry
is anticipating a bumper
festive season
as the latest round of
GST duty cuts
is expected to combine with gains from a healthy monsoon to spur demand in rural as well as urban areas.
The industry had a dull festive period last year, ironically on account of GST as teething problems related to its introduction had dampened sentiment.
Kamal Nandi
, VP at
Godrej Appliances
, said prices would come down by 7-8% (after making certain adjustments) as new stocks start rolling in.
“It brings in good sentiments and we expect the industry to grow by around 12-15% this festive period against muted or single-digit growth over the past one-and-a-half years,” he said.
‘Affordability will spur demand in smaller cities’Nandi said a major fillip is expected in areas dependent on agriculture. “Affordability is critical here, and this price cut is substantial for entry-level products. For example, a direct-cool single-door refrigerator gets cheaper by around Rs 900 (current price around Rs 12,000) while price of a top-load semi-automatic washing machine will come down by about Rs 700 (priced at Rs 10,000).”
Officials at other companies such as Panasonic, LG, Samsung and contract manufacturer Dixon too said increased affordability would spur demand, especially in smaller towns and cities where buyers are generally price-sensitive. However, the industry was disappointed at air-conditioners and mid-sized TVs not getting any duty cuts.
LG India senior director Ravinder Zutshi said, “It is the right step at the right time to get excitement in the market just ahead of the festive period.” LG India business head (flat panel TVs) Rishi Tandon said that those replacing older and bulky curved TVs would benefit from the measure. “Rural areas are surely going to gain.”
Panasonic India president and CEO Manish Sharma said that the confidence of the industry to invest in expansion activities will also grow. “The decision will bolster the employment rates and give the necessary impetus to the country’s manufacturing sector,” he said.
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