current trends in condumer durable industry in india-assignment

8/4/2019 Current Trends in Condumer Durable Industry in India-Assignment

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CURRENT TRENDS IN CONDUMER DURABLE INDUSTRY IN INDIA

INTRODUCTION

Consumer durables involve anytype of product purchased by consumersthat is manufacturedforlong-term use. As opposed to manygoods that are intended for consumptionin short term,consumerdurables are intended to endure regularusage for several years or longerbefore theirreplacement is required.Just about every household containsat least a few items that may beconsideredto be of consumer durablenature. With India being the secondfastest growingeconomy having ahuge consumer class, consumer durableshave emerged as one of thefastestgrowing industries in India

The consumer durables sector ischaracterised by the emergence of MNCs, exchangeoffers,discountsand intense competition. The marketshare of MNCs in the consumerdurablessector is 65 per cent.MNCs major target is the growingmiddle class of India.

CLASSIFICATION OF CONSUMER DURABLES INDUSTRY

Consumer Durable Industry

White GoodsConsumerelectronics

Kitchen appliances/brown goods

.Mixers.Grinders.Microwave ovens

. Iron.Electric fans.Cooking range

. Refrigrators

. Washing machines

. Air-conditioners

.Speakers and audiocomponents

.Mobile phones

.Televisions

.MP3 players

.DVD players.VCD players


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PRE 1991 SCENARIO

Before the liberalisation of theIndian economy, only a few companieslike Kelvinator, Godrej,

Allwynand Voltas were the major players inthe consumer durables market accounting for no

less than 90 per centof the market .The presence of private sector was very limited andinvestments by foreign multinationals were discouraged.

POST LIBERALIZATION

Post-liberalization manyforeign companies have entered into India, dethroning the Indian

players and dominating themarket. The major categories in the market are

CTVs,refrigerators, air-conditioners and washingmachines. The rural market is growing

faster than the urban markets, although the penetration levelin rural area is much lower .

After liberalisation, foreign players like LG, Sony,Samsung,Whirlpool, Daewoo and Aiwa

came into the picture . Today, theseplayers control a major share of theconsumer durables

market.

GROWTH IN THE SECTOR

The consumer durables and electronicssector registered a 30 per centgrowth during January-March 2010.According to the industry body, thetotal size of the consumer durablesandelectronics sector is around $6.58billion.Some high-growth categorieswithin this segment include mobilephones, TVs and musicsystems.


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Trends favouringthe growth

The rising income levels, double-income families and increasingconsumer awareness are themain growth drivers of this industry. In addition to them the youngnature of population and

easy finance options are also fuelling the market and its dynamics.

Consumers today are more indulgent in market place than their predecessors. There has beenshiftin the definition of needs and wants. For example a mobile phone is more of a need todaythen awant. Westernisation has influenced the psyche of the Indian customers to a degree.

Developing countries such as India and China have largely been shielded from the backlashof the recession, as consumers continued to buy basic appliances. In fact, China has beenranked the second-biggest market in the world for consumer electronics. Despite therecession, their strong domestic economy and growing high-income population have buoyeddemand leading to aggressive market growth .

There is growing interest for new age products such as LCD-TVs and DVD players.Meanwhile, the penetration of the basic, largest dollar items such as ovens, washing machines

and refrigerators is also increasing. India too, has witnessed a similar phenomenon, with theurban consumer durables market growing at almost 10 %p.a., and the rural durables market

growing at 25% p.a. Some high-growth categories within this segment include mobilephones, TVs and music systems.

In the case of more expensive consumer goods, such as refrigerators, washing machines,

color televisions and personal computers, retailers are joining forces with banks and financecompanies to market their goods more aggressively. In addition, change in policy, such as theWTO FTA in 2005 resulted in zero customs duty on imports of all telecom equipment,thereby improving the pricing and affordability of imported goods.

FUTURE OUTLOOK

As rapid socio-economic changessweep across India, the country iswitnessing the creation ofmany newmarkets and a further expansionof the existing ones. With over 300million peoplemoving up from thecategory of rural poor to rural lowermiddle class between 2005 and2025,rural consumption levels are expectedto rise to current urban levels by2017.

Indian incomes are likely togrow three-fold over the next twodecades and India will becometheworlds fifth largestconsumer marketby 2025, moving upfrom its position in2007 as the12th largestconsumer market.With easy availabilityof finance,emergence of double-incomefamilies,fall in prices due toincreased competition,governmentsupport, growth ofmedia,availability ofdisposable incomes,improvements in technology, reduction in customs

duty,rise in temperatures and growth in consumer base of the rural sector, the consumerdurables industry is growing at a fast pace.

Given these factors, a good growth is projected in the future too. The penetration level ofconsumer durables is very low in India compared to other countries.This translates into vastunrealised potential.The industry expects the government to deepen its focus on the ruraleconomy with greater fiscal incentives and rural employment

CHALLENGES FACED BY CONSUMER DURABLES INDUSTERY


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Durable goods are those which dont wear out quickly, yielding utility over time rather thanat once. Examples of consumer durable goods include electronic equipment, home

furnishings and fixtures, photographic equipment, leisure equipment and kitchen appliances.They can be further classified as either white goods, such as refrigerators, washing machines

and air conditioners or brown goods such as blenders, cooking ranges and microwaves orconsumer electronics such as televisions and DVD players. Such big-ticket items typically

continue to be serviceable for three years at least and are characterized by long inter-purchasetimes.

In the past 10 years, the global market has witnessed a surge in demand as economies such asBrazil, Mexico, India and China have opened up and begun rapid development, welcomingglobalization with lan. The consumer durables industry has always exhibited impressivegrowth despite strong competition and constant price cutting, and the first contraction sincethe 2001 dot-com bust has been due to the global recession. Given the strong correlation

between demand for durables (both new and replacements) and income, the industry naturallysuffered during the 2008-2009 period. However, projections for current year going forward

are very optimistic, as consumers resume spending, and producers launch new enticingvariants to grab new customers. Leading players include Sony Corporation, Toshiba

Corporation, Whirlpool Corporation and Panasonic Corporation.Developing countries such as India and China have largely been shielded from the backlash

of the recession, as consumers continued to buy basic appliances. In fact, China has beenranked the second-biggest market in the world for consumer electronics. Despite the

recession, their strong domestic economy and growing high-income population have buoyeddemand leading to aggressive market growth.

The Indian consumer durables industry has witnessed a considerable change in the pastcouple of years. Changing lifestyle, higher disposable income coupled with greateraffordability and a surge in advertising has been instrumental in bringing about a sea changein the consumer behavior pattern. Apart from steady income gains, consumer financing andhire-purchase schemes have become a major driver in the consumer durables industry.In the case of more expensive consumer goods, such as refrigerators, washing machines,color televisions and personal computers, retailers are joining forces with banks and financecompanies to market their goods more aggressively. In addition, change in policy, such as theWTO FTA in 2005 resulted in zero customs duty on imports of all telecom equipment,thereby improving the pricing and affordability of imported goods.

However, still the Indian consumer durables industry is plagued with a number of problems.The biggest threats to the local industry going forward are supply-related issues pertaining todistribution and infrastructure, as well as demand issues due to competition from importedgoods. The lack of well developed distribution networks makes it especially challenging to

penetrate the fastest growing rural areas economically. In addition, regular power cuts andpoor road linkages make systematic production, assembly and delivery problematic. Some of

these major challenges can be discussed in detail, as follows :-

POOR INFRASTRUCTURE


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Poor infrastructure is a major reason that seems to have held back the industry. Regularpower supply is imperative for any consumer electronics product. But that remains a major

hiccup in India. The lack of well developed distribution networks makes it especiallychallenging to penetrate the fastest growing rural areas economically. In addition, regular

power cuts and poor road linkages make systematic production, assembly and deliveryproblematic.

HEAVY TAXATION

Heavy taxation in the country is one of the challenges for the players. At its present structurethe total tax incidence in India even now stands at around 25-30 per cent, whereas thecorresponding tariffs in other Asian countries are between 7 and 17 per cent.

POORPENETRATION OF RURAL MARKET

The rural region in India could comprise a large market share for the consumer durables

industry. However one the major challenges faced by the industry is poor market penetrationin rural areas. This is mainly attributed towards poor infrastructure development especially in

rural areas. Also, foraying into these rural markets has a considerable cost componentattached to it. Companies not only have to set up the basic infrastructure in terms of office

space, manpower, but also spend on transportation for moving inventory. Even LG andSamsung, which are touted as having the largest distribution network in the country, have a

direct presence only in 15,000 to 18,000 of the around 40,000 retail outlets (for consumerdurables) in the country.

COMPETITION FROM MNCS

MNCs hold an edge over their Indian counterparts in terms of superior technology combinedwith a steady flow of capital, while domestic companies compete on the basis of their well-acknowledged brands, an extensive distribution network and an insight in local marketconditions. The largest MNCs incorporated in India are Whirlpool India, LG India, SamsungIndia and Sony India and homegrown brands are Videocon, Godrej Industries and IFB.

THREAT FROM NEW COMPANIES

Threat from new entrants, especially global companies: The domestic consumer durablessector faces threat from newer companies, especially from global ones who havetechnologically advanced products to offer.

RIVALRY AND COMPETITION

Presence of a large number of players in the domestic consumer durablesIndustry leads to competition and rivalry among companies. Threat from rivalry andcompetition poses a threat to domestic companies.

POTENTIAL MARKETS REMAINING YET UNTAPPED


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A large segment of the domestic market, mostly the rural market is yet to be tapped. Tappingthis yet untapped and unorganised market is a major challenge for the Indian consumerdurables sector.Customer power with respect to availability of choice:The availability of a wide product line on account of most products being homogeneous,

poses a threat for companies operating in the consumer durables sector. Customers have thechoice of both domestically produced and imported goods, with similar features.

HOMOGENEITY OF GOODS

On the demand side, customers have increasing choice from both domestically produced andimported goods, with similar features. This homogeneity makes it difficult for players toremain ahead of the competition.

With the increase in price wars due to the entry of new players in the market and increase inmanufacturing capacity by some original manufacturers, the profitability and margins of the

companies are adversely affected. Poor distribution network in semi-urban and ruralareas.Low awareness of consumer electronics products in rural India.Presence of gray marketin consumer electronics products, especially in DVD player, music players. Companies needto increase focus on product differentiation to address various segmental specific needs.

With the increase in access to Internet information, and availability of wide range of choices,consumers have become quite smart. They want the product that is easy-to-handle, good inquality and low in price. Most importantly, consumers want some guarantee for the productthat they are buying. They look for the product that can be used for many years. The role ofelectronic companies doesn't end on the sale of the product, but continues till the end ofguarantee period.

CONSUMER ANALYSIS:


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Even discounting the purchase power parity factor, income classifications do not serve as aneffective indicator of ownership and consumption trends in the economy. Accordingly, the

National Council for Applied Economic Research (NCAER), Indias premier economicresearch institution, has released an alternative classification system based on consumption

indicators, which is more relevant for ascertaining consumption patterns of various classes ofgoods. There are five classes of consumer households, ranging from the destitute to the

highly affluent, i.e. starting with the destitute, the aspirant, the climber, the consuming classand the rich, which differ considerably in their consumption behaviour and ownership

patterns across various categories of goods. These classes exist in urban as well as ruralhouseholds both, and consumption trends may differ significantly between similar incomehouseholds in urban and rural areas. For long, the consumer has been the poster-boy of theIndia growth story. The demographic shift in favour of a younger working population andthe upward-bound income levels have been cited to support the view that, no matter whatgoes wrong with the global economy, the Indian consumer will continue to splurge. But thisassumption is now being challenged, with the prospect of pay cuts and even layoffs

beginning to materialise. Is the slowdown taking a toll on the Indian consumer?

Sales of consumer durables do not yet show signs of a dramatic slowdown.The Indian

consumer durable industry is witnessing a growth of 30 per cent owing to increase in summersales which further lead to highest growth of 50 per cent in sales of refrigerators and airconditioners.

According to a statement from Consumer Electronics and Appliances ManufacturersAssociation, (CEAMA), the last quarter also saw phenomenal sales especially of displayswhich include conventional flat panel displays (PDPs, LCDs and flat screen TVs). Theindustry also witnessed a 40 per cent growth in home appliances business.

The consumers nowadays prefer to use devices and products in-built with smart technologyand design innovations which are more advanced that makes their life easy and consume lesstime. The consumers not only focus on the functional benefits of the products but also on theaesthetics added with the product.

The Indian consumer durables industry has witnessed a considerable change over the last fewyears. Changing lifestyle, higher disposable income coupled with greater affordability, boomin the real estate and housing industry and a surge in advertising has been instrumental in

bringing about a sea change in the consumer behavior pattern.

The industry has also witnessed some interesting upcoming trends. Due to early advent ofsummer, March and April saw an unprecedented sale of AC. Earlier, most households used to

buy a single AC. Now, on an average, there are two to three air conditioners per home.

Consumers are more aware of energy efficient appliances as they are proactively asking forstar-rated refrigerators and air conditioners. The demand for LCD televisions is also huge asconsumers are replacing CTVs for an LCD or LED. Rural markets and small towns haveshown promising demand for durables. There are pockets of prosperity in rural India that aredrivers of rural growth.

CHANGING ATTITUDES OF TODAYS CUSTOMERS


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Today customer likes to indulge in buying spree. No more the customers buy only to fulfiltheir basic needs and emphasise on savings itself. Indian consumers have become value

sensitive and are not much price sensitive as was the case earlier. If they feel that a particularproduct offers them more value and its price is high, even then they are willing to buy the

product. The Indian consumers strictly follow their culture, tradition and values, as a result ofwhich foreign companies were forced to give an Indian touch to them in order to succeed in

India. McDonalds, MTV, Pepsi, Star TV, Coca Cola India and many more had to Indianisethemselves to flourish in India. KarvaChauth is celebrated with more zeal and enthusiasmthan the Valentine Day. The Indian consumer of today gives preference to features of a

product rather than its brand name. The trend that higher segment consumers only buy the topbrands has also come to an end. Even after liberalization Indian companies and brands aredoing very well. It is clearly evident from the fact that despite many foreign brands beingsold in India, Raymond is still Indias largest textile company and Haldiram is doing welldespite the presence of McDonalds and Pizza Hut. The consumers today are not confined to asingle brand and prefer change rather than sticking to the same brand. Not often do we seeany home with cars of the same brand or household products of the same brand. The use of

credit card for shopping is a new emerging trend in India. Also consumers are availing creditor loan from banks and other financial institutions to fulfil their needs and wants. The Indian

consumers are spending thick and fast on premium and luxury products. The Indianconsumers have shown another major change in their buying behaviour.

They just dont want availability of products; they also want better experience, services andambience. This has led to the growth of shopping malls where shopping, entertainment and

better facilities are all available under one roof. To a great extent the presence of heavyweight such as the pantaloons, big bazaar, croma, nilgirisetc has given a huge fillip to thegrowing market by not only selling products but also the experience. The Indian consumersare much more inclined to the organized sector. The rural Indian consumers are also showingsigns of change. They have all the modern amenities at their home and their standard ofliving is fast improving. The rural households have earned huge money due to price rise inreal estate. They are also shifting towards industrial and services sector; hence their

purchasing power is increasing. It is reflected in their living standard and possession of allelectronic gadgets and luxury cars. There is a stiff competition in the Indian market today andit has become a buyers market from sellers market. Customers are the ultimate beneficiaryof the fierce competition in the market. Competition has reduced prices to a great extent andhas forced the manufacturer to maintain product quality to sustain in the highly competitivemarket. Though in a small way internet and telemarketing have also caught the attention ofthe Indian customers. Dell, Amazon .com, etc have carved a good niche for them in thesector. The consumers today do not mind availing credit as when needed. So creditavailability has become a key factor for determination of a buying a good. Consumers arealso availing the information available on net through various forums and websites.

MARKETERS REPONSE TO CONSUMER ATTITUDE


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With change in consumer buying behaviour the companies also made necessary changes intheir marketing strategies. The changes include: 1) Launching of premium products by

companies to fulfil requirements of high class consumers. 2) Since purchasing power of ruralIndia has increased, the companies have started shifting their focus towards rural India to

capture untapped rural market. This has reaped huge benefits for companies like in cases ofPepsiCo, Coca Cola India and other FMCG companies. 3) Companies not only aim to sell

their products but also aim to provide better after sales services to its consumers. For examplecompanies have provisions to send their technicians to repair the cars struck at highways orother outer locations due to technical failure or in case of a mishap. This improves thecompanys credibility and helps to build its customer base. 4) Companies design their

products on the basis of market segmentation so that they have products to suit every pocketand requirement. 5) Due to sharp growth in the communication sector, companies are

providing many schemes and plans to attract customers. For example mobile serviceproviders provide lifetime option and free calls to other mobile users under a specific plan ofthe company. 6) Due to fierce competition in the electronics market and peoples willingnessto purchase hi-tech products the rates of LCD and plasma TVs have been slashed by 25%-

30%. Through this strategy electronic companies received very good response from theconsumers in the recent past and were able to build a considerable market for their products.

7) Indian consumers have developed a liking for foreign tours and holidays. This has led todevelopment of many travel agencies that provide a planned foreign tour at a reasonable

price. What is even more interesting is that the customer does not have to pay the amount inlump sum; instead, he has the facility to make the payment in monthly instalments according

to his convenience. 8) Consumers of India have developed a tendency to save travel time. Forsuch consumers low fare or low cost carriers are available that provide air travel facility at a

very affordable price. 9) Consumers of India want better housing facilities. The constructioncompanies are fulfilling this requirement of consumers by providing them luxurious houses,exquisite interiors, round the clock water and electricity supply, full time security, clubhouse, gymnasium, etc. within the premises. 10) Indian consumers are increasingly becomingaware of the importance of health and hygiene. Hence companies are making products to suittheir health like low calorie, low fat food. As far as hygiene is concerned companies havefully mechanized their plants to maintain hygiene and pack the food in such a way that itremains fresh for longer period of time and does not lose its nutritive value beforeconsumption. 11) The need for internet is fast growing. To fulfil this need of consumers,mobile manufacturing companies are providing internet access facility on mobile phones.This has revolutionized the communication sector and provided a means of communicationthat was never ever in anybodys dreams till a few years back. 12) Indian consumers likingfor credit is also increasing rapidly. Hence many financial institutions have come intoexistence in India and are flourishing. Banks have also become liberal in their loan and credit

policies.

MARKET SHARE OF LEADING COMPANIES


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The consumer durables market in India was estimated to be around US$ 4.5 billion in 2006-07. More than 7 million units of consumer durable appliances have been sold in the year

2006-07 with colour televisions (CTV) forming the bulk of the sales with 30 per cent share ofvolumes. CTV, refrigerators and Air-conditioners together constitute more than 60 per cent of

the sales in terms of the number of units sold.

Key consumer durables share by volume Consumer Durables - Share by VolumeColour Television sets (CTVs) - 30%Refrigerators - 18%Air-conditioners -13%Washing Machines -5%Others - 34%

NOKIA- a successful MNC in India

Mobile phone landscape in 1995 was one open business opportunity for all the players to

capture and succeed. Nokia was one company that succeeded in capturing this opportunity

effectively. One of the key differences between Nokia and its competitors was that Nokia was

completely focused on mobile phones; while its competitors had consumer electronics, home

appliances, etc

Nokia India holds 59.1 % of market share and Market share was 31% in the 4th quarter 2010,

but dropped below 30% in the 1st quarter 2011.For the first time in 10 years during the

company's 1st quarter. But Nokia continued to be the market leader in India.

Manufacturing Edge


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Nokias big investment in India has been in the Manufacturing and R&D centers in India.Nokia has several R&D centers and labs in India including a $150 million handset

manufacturing facility in Chennai setup in 2005. More than 25 million handsets have beenproduced so far with almost 30 per cent of them exported to neighboring countries.

LG Electronics India Limited

LG Electronics India, a wholly owned subsidiary of the Seoul-based parent, bet big on India,and the gamble is paying off. LG's share of the Indian market (by volume) is currently 29.4

percent in refrigerators, 26.5 percent in color TVs, 35.8 percent in washing machines, and acrushing 38.0 percent in microwave ovens. LG's Indian market share in GSM handsets is now6 percent and rising.

The company's ambitions don't stop there. LG Electronics India has set itself a revenue targetof $10 billion by 2010five times the present levelas it positions itself to attack the fast-growing Indian information and communications markets. Within five years, it also plans tomake India a hub for exports to other parts of Asia and to Africa and the Middle EastLG

Electronics India Private Limited (LGEIL) is targeting to corner a 42 per cent pie of themonitor market in India by the end of this yearLG has 33.7 per cent monitor market share andit targets to achieve 42 per cent by the end of 2011.

According to Cyber Media Research, the monitor market in India is 5.8 million in volumeterms and LG is looking at the addressable market of 3.2 million units.they are focusing toachieve 1.1 million units and Rs 850 crore in revenues from IT products this year, as againstRs 790 crore last year.

Blue Star BlueStaris Indias largest central airconditioning company. With a market cap ofRs. 3,000 crores, it fulfils the airconditioning needs of a large number of corporate and

commercial customers and has also established leadership in the field of commercialrefrigeration. The Company has also started offering Electrical Contracting and Plumbing &

Fire Fighting Services. It earned revenue of Rs. 600 crores& a net profit margin of 3% inDecember 2010.

Videocon Industries - This is an India-based electronics goods manufacturing companyestablished in 1979. The market capitalisation of the company is Rs. 6,000 crores. It acquiredthe Electrolux brand in India. The main business activity of Videocon Industries Ltd.involves manufacture of consumer electronics, home appliances, and office automationequipment. The company earned revenues of around Rs. 3,000 crores with a net profit marginof 5%.

Samsung Electronics is the worlds largest producer of colour monitors, color TVs, memorychips and TFT-LCDs. Samsung India Electronics Ltd. (SIEL) is a subsidiary of SamsungElectronics Company Ltd (SECL) of South Korea. SIEL started its operations in 1995 and

provides high technology consumer electronics, IT, Home appliance and Telecom products. Ithas over 1400 employees and a turnover of over US$ 824 million.

Sales of SIEL have been growing at a CAGR of almost 50 per cent over the past four years.


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SIEL is the market leader in high end digital television (Plasma, LCD and DLP). In thehighly

Competitive Colour Television market in India, Samsung has a market share of 15.5 per cent.Samsung holds the No. 2 position in the Flat Television category, Frost Free refrigerators as

well as in the Microwave oven segment. Samsung is the leader in the IT essentialssegmentwith 63 per cent Market share in TFT LCD monitors, 51 per cent in CRT Monitors, 43per

cent in Multifunction Printers and 47 per cent in Hard Disc segment.In the telecom space,Samsung is the market leader in colour screen phones with 36 per centmarket share. It is alsothe second largest selling mobile phone brand across all categories in India.

Sony India - Sony has 25 % of market shares in the segment .Sony India came into existence in the year 1994 and they have more than 7000 channel

partners, more than 200 Sony exclusive outlets in the name of Sony World and more than 20direct branch locations. They are dealing with nearly 20 different products in the consumerdurable industry in India Consumer electronics major Sony India today said it was targettingto be the number one player in the LCD TV segment and was aiming to achieve 30 per centmarket share this fiscal. It also announced the launch of 24 new models in NX, EX and BX

series under the Bravia umbrella of varying screen sizes ranging between 22 and 60 inches.Sony would also launch 3D TVs in India and announcement in this regard will be made in

June this year. Their aim was to double the sales this fiscal to 8 lakh units from 4 lakh units

last year to achieve 30 per cent market share. The company would expand its sales network

by increasing the outlets to 5,000 from the present 2,500

Titan Industries - The biggest consumer durables company in India with a market

capitalisation of Rs. 16,000 crores. The revenue earned in Dec10 was around 1,900 crores&

the net profit margin was 7%. Titan dominates the Watch Market, with a 60% share of the

organised sector market. Titan Industries is the worlds fifth largest and Indias leadingmanufacturer of watches. The company has manufactured more than a 100 million watches

till date. The World of Titan is one of the most prestigious and visible retail brands in the

country Lately, Titan has diversified its business into eye ware & jewellery. Tanishq, the

prominent Indian jewellery brand is a division of Titan Industries Limited.

V.I.P Industries - One of the biggest companies manufacturing Travel products in India

with market capitalization is Rs.1,800 crores. I It acquired Carlton brand in 2004 & merged

with Aristocrat Luggage Limited in 2008. Lately the company has launched specialized

products like water and stain resistant bags with Teflon & VIP Superlite (lightweight

luggage). It was ranked amongst Top 100 most trusted brands in a survey by Brand Equity.It

earned revenues of Rs.190 crores with a net profit margin of 1%

Bajaj Electricals Ltd.- With a market capitalization of Rs. 2,000 crores, it is an India-basedconsumer electrical products manufacturing company. The concern has also sister businessconcerns like Bajaj Auto ranked as the worlds fourth largest two and three wheelermanufacturer. It has six strategic business units Engineering and Projects, Appliances,Fans, Luminaires, Lighting and Morphy Richards. The company has earned revenues ofRs.600 crores with a net profit margin of 5% in Dec 2010.


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Whirlpool India Ltd. With a market cap of Rs. 3,000 crores, Whirlpool is the mostrecognized brand in home appliances in India and holds a market share of over 25%. In 1996

Whirlpool Washing Machines Ltd. and Kelvinator India Ltd. merged together to formWhirlpool of India Ltd and marked its entry into Indian refrigerator market as well. Worlds

number one manufacturer and marketer of major home appliances, with 11 major brandnames such as Whirlpool, KitchenAid, Roper, Estate, Bauknecht, Laden and Ignis.The

company earned revenues of Rs. 600 crores& a net profit margin of 4%.

current trends in condumer durable industry in india-assignment

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