Companies manufacturing air conditioners, air coolers, ice-creams and colas will close the April-June period with a sales growth of 40-50% versus last year due to a prolonged heatwave in many parts of the country. Besides, the southwest monsoon is yet to pick up in the west, north, central and eastern regions.
In 2023, unseasonal rain during the summer resulted in weak sales for these products. This year the situation is exactly the opposite.
Appliance makers from Godrej to Voltas, LG to Haier, cola majors such as Coca-Cola and PepsiCo, and beverage, dairy and ice-cream players such as Amul and Mother Dairy say this summer season has been a boom period for them.
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“Without question, this has been a record summer season for us, with sales growth of over 40-50% year-on-year across categories,” says Jayen Mehta, managing director (MD), Gujarat Co-operative Milk Marketing Federation (GCMMF), which manufactures and markets the Amul brand of products.
Mehta said the IMD’s forecast of a strong summer helped the cooperative anticipate demand, which has helped it ensure steady supplies through the April-June period. “We had undertaken capacity addition in categories such as fresh products, ice-creams, beverages prior to the onset of summer. This was utilised well during the summer,” he said.
Manish Bandlish, MD, Mother Dairy said demand for dairy products has only risen as temperatures have soared over the last three months. “Our summer-centric products, including ice-creams, dairy beverages, curd and mishti doi, have collectively achieved a growth of over 40% so far versus last year. This traction has been alike across channels, including online and offline,” he said.
At Godrej Appliances, demand for air conditioners has been unprecedented this year. “Overall, our sales growth has been over 60% in the April-June period versus last year, led by air-conditioners. Consumers have also responded to the heatwave, keeping aside inflationary concerns,” said Kamal Nandi, business head and executive vice-president, Godrej Appliances. Easy financing has ensured consumers across premium and mass segments could pick up products in easy instalments and down payments, Nandi added.
The Consumer Electronics and Appliances Manufacturers Association, the apex body of appliance manufacturers in the country, has indicated the market for air conditioners is set to expand to 14 million units at the end of this summer from 10 million units reported last year. This is a growth of 40% year-on-year, it said, owing to the heatwaves.
Companies such as Coca-Cola India and PepsiCo India said the Indian beverage market has seen significant momentum because of the heatwave conditions.
“Given the surge in demand, we are ensuring that our products are available across all retail and e-commerce formats, catering to both in home and out of home demand, making it easier for everyone to stay cool and refreshed during the hottest months of the year,” a PespsiCo India spokesperson said.
A Coca-Cola India spokesperson said the company was scaling up its distribution across channels to cater to demand. “For the convenience of our trade partners in India we have launched an AI-powered app, Coke Buddy to place orders 24×7 directly with the company,” the spokesperson added.
From: financialexpress
Financial News
