Rains dampen sales of durables in South India

Mumbai, Nov 13 | Updated: Nov 14 2005, 05:30am hrs
Unprecedented rains in Tamil Nadu and Karnataka have created a dent in the sales of consumer durables in the south. The CD market in this region has seen a 8-10% fall in sales in April-September this year. Last year, the southern CD market was pegged at Rs 11,200 crore, and accounted for 28% of the overall durables sales in the country.

According to industry players, the sales growth of refrigerators and washing machines has fallen by 30%, whereas microwave oven sales, expected to grow 40%, actually fell by 10-12%. AC sales, expected to grow 15%, dropped by 8% in this quarter. Pushp Saurabh Baisakhia, LG Electronics India, head - microwave ovens, says: There has been 30-40% drop in sales of LG microwave ovens in Tamil Nadu and Karnataka, and a 25% drop in Chennai. Nationally, LG has sold 40,000 units of its microwave ovens in October, as compared to 20,000 units in the previous corresponding period. However, in South, LG has not been able to sell over 10,000 units in October this year.

The appliance division of Godrej & Boyce Manufacturing Company Ltd, too, has witnessed dent in consumer off-take for its washing machines and refrigerators by 10-15%. We could have sold more units of refrigerators and washing machines in South but for rains. Last year, the southern market comprised 20% of Godrejs CD turnover, its vice-president (sales and marketing), Kamal Nandi says. The Rs 2,000-crore AC market has grown by 25% in 2005, wherein window ACs have grown by 18% and splits by 32% over last year. Electrolux Kelvinator India Ltd, marketing head - ACs, Sanjeev Wadhwa says even as the sales of window ACs have been badly impacted in South, Electrolux has witnessed 5% growth in split ACs.