Durables
Liebherr starts production of its fully integrated appliances in India, first country outside Europe
Liebherr Appliances India is set to manufacture fully integrated refrigerators, freezers, and combinations in India, marking its first production outside Europe. This move highlights Liebherr's commitment to the Indian market, offering immediate product availability in the premium segment. The company aims to cater to the growing demand for high-performance appliances, tailored to India's climate and consumer preferences.
Reliance & Havells enter PE party to snap up Whirlpool
Whirlpool Corp is divesting a 31% stake in its Indian arm, attracting interest from Reliance Retail, Havells India, and buyout funds like EQT and Bain Capital. This move is part of a global restructuring following a $1.5 billion loss, with the aim to raise $550-600 million.
Erratic weather is hurting Indian firms in the biggest consumer market
Indian companies, already facing a demand slump, are now grappling with unpredictable weather patterns. Unseasonal rains and cooler summers have impacted sales for major players in sectors like air conditioning and beverages, forcing production cuts and inventory adjustments. Businesses are increasingly turning to advanced weather forecasting to mitigate risks and adapt to the growing challenges posed by climate change.
Govt sets a cool exports target for AC makers
The government is pushing air conditioner manufacturers to significantly increase exports. This follows the Production Linked Incentive scheme. The goal is to make India a major AC exporter, competing with China and Thailand. India aims to export 15-16 million AC units in four years. Currently, exports are around 2 million units. The government is seeking industry input on export challenges.
Govt extends quality control order deadline for electrical items to March 2026
India has extended the implementation deadline for the mandatory quality control order (QCO) on specific electrical appliances to March 2026, following consultations with stakeholders. This decision aims to facilitate ease of doing business for domestic and foreign manufacturers. The QCO seeks to establish a robust quality ecosystem and curb the import of substandard products.
Indians buy 14 million ACs a year, and need many more
More Indians are buying air conditioners to combat extreme heat. AC sales are booming, driven by rising temperatures and incomes. This surge in demand strains India's electricity grid. Most power comes from coal, increasing emissions. While ACs offer relief, they worsen climate change. Energy-efficient models and awareness are crucial. The nation faces balancing comfort and environmental responsibility.
Beijing’s Pakistan stand deepens India-China divide, clouding Haier and PLI-linked JV deals
Indian firms anticipate stricter regulations for partnerships with Chinese companies due to China's support for Pakistan. This situation casts doubt on pending deals, including Haier's stake sale in its Indian operations. Government officials suggest Chinese entities will only be allowed small stakes in JVs under the PLI scheme for critical components, potentially impacting investment plans.
Sunil Mittal set to buy $2 billion stake in Haier India
Sunil Mittal is planning to acquire a significant stake in Haier India. He is partnering with Warburg Pincus for this deal. The potential acquisition could be around $2 billion. Haier is considering selling a stake in its Indian unit. Other investors like Temasek and GIC have shown interest previously. Haier's revenue in South Asia has experienced substantial growth.
Cooler April cools sales: ACs, fridges see sharp drop as summer falters in south, east
Summer product companies face challenges as April sales decline. Air conditioner and refrigerator sales dropped significantly in some regions. Beverage sales saw a marginal impact in select markets. Lower heatwave days and moderate temperatures contributed to the slowdown. Companies postpone planned price hikes. They anticipate improved sales with expected heatwaves in May and June.
Chinese AC compressor import rules eased for a year to tackle shortage
To address a critical shortage, the Indian government has temporarily waived mandatory BIS certification for air-conditioner compressor imports (up to two tonnes) from China for one year. This decision, prompted by industry demands ahead of peak summer, aims to alleviate supply constraints due to insufficient local production.
Must Watch
Need separate PLI for compressors, motors; boost to PCB manufacturing: Panasonic India head
Panasonic India's head, Manish Sharma, has advocated for a dedicated production-linked incentive (PLI) scheme for air conditioner components, particularly compressors and motors. He lauded the government's PLI scheme for passive electronics, anticipating enhanced industry competitiveness.
Daikin invests Rs 500 crore in new R&D hub at Neemrana to drive India-led global innovation
Daikin, the Japanese air-conditioning giant, has invested Rs 500 crore in a new R&D center in Neemrana, Rajasthan, to develop products for export. This facility, employing over 500 people, will be Daikin's third R&D center in India. It will focus on tailoring HVACR solutions to meet energy standards and technological advancements, enhancing synergy with the existing manufacturing plant.
Rainfall cools down April AC sales; price hike likely soon
Despite intermittent rainfall in the south and thunderstorms in the north and east impacting sales, the room air conditioner industry anticipates double-digit growth in the June quarter, driven by forecasts of an intense summer. Manufacturers like Blue Star, Samsung, and Haier are implementing price increases of up to 5% due to rising raw material costs and currency fluctuations.
Don't just be cool, be better: BEE asks AC, fridge manufacturers to boost energy efficiency to match world standards
The Bureau of Energy Efficiency (BEE) is pushing air-conditioner and refrigerator manufacturers to meet stringent global energy efficiency standards by 2027, potentially reclassifying current five-star ACs to one-star.
Blue Star aims 20 per cent growth from its Commercial Refrigeration solutions business
Blue Star anticipates 20% growth in its Commercial Refrigeration segment, driven by increased consumption of frozen foods and dairy. The company aims to tap into sectors like dairy, ice cream, and healthcare. With a 30% market share in the Rs 4,500 crore market, Blue Star plans a threefold growth in five years, supported by investments in its Wada and Ahmedabad plants.
Hitachi India elevates Bharat Kaushal to executive chairman
Hitachi India has appointed Bharat Kaushal as its Executive Chairman, effective April 1. In addition, he has been named Corporate Officer in charge of regional strategies (India) at Hitachi Ltd., the Japanese multinational.
