Sector Trend - Outlook     25-Jun-16
Sector
Consumer Durables: Strong monsoon to revive washing machine sales
Outlook

The sweltering and humid heat of summer was good news for air conditioner and air cooler makers in India, both of whom are expected to have seen sales growing by more than 20-25%. Rising temperatures in Tamil Nadu, Kerala, Telengana and Maharashtra have pushed up sales by up to 25% for major manufacturers between January and March 2016. The AC industry is expected to grow by 18–20% year on year in 2016 and the cooler industry by 25%. While, penetration of air conditioners is at 60% globally, for India its 3% with near zero penetration in rural households, according to a report by E&Y report. Washing machines are found in 70% of houses globally. But in India the penetration is just 8.8% of the total homes. The consumer durable players are now expecting a strong monsoon to revive growth for the washing machine segment.

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