CONSUMER DURABLES

For updated information, please visit www.ibef.org July 2019

Table of Content

Executive Summary……………….….…….3

Advantage India…………………..….……..4

Market Overview …………………….……..6

Recent Trends and Strategies …………..15

Growth Drivers……………………............18

Opportunities…….……….......……………23

Industry Associations…….……......……...27

Useful Information……….......…………….29
 EXECUTIVE SUMMARY

 Indian appliance and consumer electronics (ACE) market reached Indian Appliance and Consumer Electronics Industry (US$
Rs 2.05 trillion (US$ 31.49 billion) in 2017. billion)
60 CAGR 9%
 It is expected to increase at a 9 per cent CAGR to reach Rs 3.15
trillion (US$ 48.37 billion) in 2022. 40 48.37

20 31.49

0
2017 2022F

 Electronics hardware production in the country increased from Rs

Electronics Hardware Production in India (US$ billion)
1.90 trillion (US$ 31.13 billion) in FY14 to Rs 3.88 trillion (US$ 60.13
billion) in FY18. Demand for electronics hardware in India is 80 CAGR 26.7%
expected to reach US$ 400 billion by FY24*. 60
 Overall consumer durable exports reached US$ 0.78 billion in 2017. 40
60.13
Consumer electronics exports from India reached US$ 451.29 million 20 31.13
in FY19.
0
FY14 FY18

Television Market in India (US$ billion)

 Television industry in India is estimated to have reached Rs 660
billion (US$ 10.19 billion) in CY2017 and projected to reach Rs 862 15 CAGR 9.8%
billion (US$ 13.31billion) in CY2020.
10

11.34 13.31
5 9.18 10.19

0
CY2016 CY2017 CY2018E CY2020F
Notes: F – Forecast; CY - Calendar Year, E – Estimate, F – forecast
Source: FICCI-EY Re-imagining India's M&E sector , PWC - Championing change in the Indian appliance and consumer electronics industry, *Draft National Policy on Electronics 2018

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 Consumer Durables

ADVANTAGE INDIA
 ADVANTAGE INDIA

 Demand growth is likely to accelerate with rising  Huge untapped market with substantially lower
disposable incomes and easy access to credit penetration of consumer appliances, compared
to other countries. In FY18, air conditioners had
 Demand of refrigerators and consumer electronics
a penetration of 4 per cent in India, compared to
goods to witness higher demand in “rural markets.
global average of 30 per cent.
 Increasing electrification of rural areas and wide
 Emerging rural areas have a great potential for
usability of online sales would also aid growth in
appliances like washing machines and
demand
refrigerators. Television penetration in rural
 The share of Consumer goods consumption India was only 55 per cent in 2018( as of March
to double by 2030. 2018).

ADVANTAGE
INDIA
 Sector has attracted significant  100 per cent FDI allowed in the
investments over the years. electronics hardware-manufacturing sector
under the automatic route; Approval of 51 per
 The S&P BSE Consumer Durables Index cent in multi-brand would further fuel the growth
has grown at 16 per cent CAGR between in this sector
2010-18.
 Draft National Policy targets production of one
 ”Government plans to invest significantly billion mobile handsets by 2025.
in rural electrification”
 National Electronic Policy was passed in
February 2019 to boost production.

Source: DPIIT, Aranca Research, ICE 360 Survey 2016, Blue Star Investor Presentation August 2018, *BARC India Universe Update July 2018, Bombay Stock Exchange

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 Consumer Durables

MARKET OVERVIEW
 THE CONSUMER DURABLES MARKET IS SPLIT INTO
TWO KEY SEGMENTS

Consumer durables

Consumer electronics Consumer appliances

(brown goods) (white goods)

Audio and video

Televisions Air conditioners Refrigerators
systems

CD and DVD Personal Sewing

Washing machines
players computers machines

Cleaning
Laptops Digital cameras Electric fans
equipment

Electronic Microwave Other domestic

Camcorders
accessories ovens appliances

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 EVOLUTION OF THE INDIAN CONSUMER DURABLES
SECTOR

 Goods and Services Tax introduced from July

 Closed market  Increasing availability and affordability of
2017, with most electronics goods taxed at 18
 Increased product availability, consumer finance provides impetus to
per cent.
increased media penetration growth
and advertising  Low penetration of high-end products such
as air conditioners (<1 per cent)

1980s and early Late 2000s

Mid and late 1990s Early 2000s
1990s Pre Consolidation 2017
Liberalisation Growth
Liberalisation onwards

 Liberalisation of markets  Companies look to consolidate market share

 Influx of global players such as LG and  Indian companies such as Videocon gaining global identity
Samsung  Increasing penetration of high-end products such as air conditioners (>3 per cent)
 Shift in focus from promotion to product  Introduction of new aspirational products such as High Definition TVs (HDTVs)
innovation  Companies targeting high growth in rural market

Note: SAFTA - South Asian Free Trade Area, ASEAN - Association of Southeast Asian Nations
Source: Aranca Research

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 GROWTH IN CONSUMER DURABLES…(1/2)

Indian Appliance and Consumer Electronics Industry (US$

Production of Major White Goods (‘000 units)
billion)
CAGR 9% 12,000
60

11,882
48.37 Refrigerators

11,538
10,000
50
31.48 Other 8,000
40 Appliances
21.50 Air Conditioners
30 6,000

5,794
13.82

5,515
26.87 4,000
20 Smartphones Washing &
17.66 Laundry Machines

3,197
3,048
10 2,000

0 -
2017 2022F 2016-17* 2017-18*

 Appliance and consumer electronics (ACE) industry in expected to grow at 9 per cent CAGR during 2017-22 to reach Rs 3.15 trillion (US$ 48.37
billion) in 2022 from Rs 2.05 trillion (US$ 31.48 billion) in 2017.

 Import of electronic goods reached US$ 53 billion in FY18.

 India’s smartphone market grew by 14.5 per cent year-on-year with a shipment of 142.3 million units in 2018. India is expected to have 829 million
smartphone users by 2022. In 2019, India is expected to manufacture around 302 million handsets.

 Xiaomi India's major revenue came from smartphones as over 80 per cent of the topline comes from this segment despite other segments like
smart TVs and fitness wearables.

 The power bank industry in India can reach Rs 18,000 crore (US$ 2.49 billion) and create 80,000 jobs by 2025.

Note: (F) Forecast, E – estimated, CY – Calendar Year, FY – Financial Year, F-forecast, * April 2017 – February 2018
Source: Electronic Industries Association of India, Canalys,CMIE, PWC - Championing change in the Indian appliance and consumer electronics industry, Draft National Policy on
Electronics 2018, Cisco, India cellular and Electronics Association (ICEA), News sources

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 GROWTH IN CONSUMER DURABLES…(2/2)

White Goods Market in India in FY18 (US$ billion) Y-O-Y Growth in Consumer Durables Production as per IIP

4 6.0% 5.6% 5.5%

4.9%
5.0%
3 4.0%
3.03 3.10 4.0% 3.4%
2.9%
2 3.0%

2.0%
0.8%
1
1.09 1.0%

0.0%
0
FY13 FY14 FY15 FY16 FY17 FY18 FY19
Washing Machines Refrigerators Air Conditioners

 The consumer durables sector in India is expected to grow 8.5 per cent in 2018-19. Production of consumer durables under the Index of Industrial
Production has grown 5.5 per cent year-on-year during April 2018-March 2019.

 As of FY18, washing machine, refrigerator and air conditioner market in India were estimated around Rs 7,000 crore (US$ 1.09 billion), Rs 19,500
crore (US$ 3.03 billion) and Rs 20,000 crore (US$ 3.1 billion), respectively.

 Imports contributed 20 per cent of domestic market for washing machines and refrigerators and around 30 per cent for air conditioners in FY18.

Note: IIP – Index of Industrial Production

Source: Edelweiss Investment Research – Impact Analysis of Custom Duty Hike on Consumer Goods, MOSPI, News sources

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 CONSUMER ELECTRONICS – KEY PRODUCTS

 CTVs are the largest contributors to this segment

 Television industry in India is estimated to have reached Rs 660 billion (US$ 10.19 billion) in CY2017 and
Colour TVs (CTVs)
projected to reach Rs 862 billion (US$ 13.31billion) in CY2020.

 Number of TV households in India is expected to reach 200 million by 2020.

 LED/LCD/Plasma television sets present a huge opportunity in India with a penetration of only 14 per cent
households*.

 Production of LCD/LED TVs has also grown at a fast pace in India from 8.7 million units in FY15 to 16 million
Flat Panel Display
units in FY18.

 The price decline due to relatively low import duty on LCD panels, higher penetration levels and the
introduction of small entry-size models are key growth drivers in the segment.

 The Set-Top Box (STB) market is growing rapidly, due to the expansion of DTH and introduction of the
Conditional Access System (CAS) in metros.
Direct-To-Home (DTH)
 Active DTH subscribers in the country increased to 69.45 million in September 2018 from 63.61 million in
March 2017.

Source: CEAMA, Electronic Industries Association of India, Economic Times, *EY – Re-imagining India’s M&E sector, Draft National Policy on Electronics 2018

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 CONSUMER APPLIANCES – KEY PRODUCTS

 This segment made up 27 per cent of the consumer appliances market in 2017.
 The market share of direct cool and frost free segment in FY18 is estimated at 70 per cent and 30 per cent
respectively.
Refrigerators
 Refrigerator market in India was estimated at around Rs 19,500 crore (US$ 3.03 billion) and is expected to
reach Rs 344 trillion (US$ 5.34 billion) by 2022. Production of refrigerators in India increased 3 per cent
year-on-year in FY18(up to February 2018) to 11.88 million units.

 Installed stock of room ACs in India increased from two million units in 2006 to 30 million units in 2017 and is
expected to be between 55-124 million by 2030.
 As of April 2019, the AC makers expect a double-digit rise in sales and expect adoption of superior
technology and power efficient range of inverter air conditioners (ACs) by consumers.

Air Conditioners (ACs)  During FY18(up to February 2018) production of air conditioners in India increased 4.9 per cent year-on-year
to 3.19 million units. Split ACs had a 85 per cent market share in FY18. Overall room air conditioners market
in the country is expected to increase to 7 million units by FY21 from 5.5 million units in FY18.
 Daikin, air conditioner maker expects a 20 per cent growth in sales and aims to become a Rs 5,000 crore
(US$ 715.41 million) company in FY20 backed by rising demand of power-efficient inverter ACs and sales
network expansion.

 Production of washing appliances in India increased 5.1 per cent year-on-year in FY18(up to Feb 2018) to
Washing appliances 5.79 million units. Washing machine market in India was estimates at around Rs 7,000 crore (US$ 1.09
billion) in FY18.

 Domestic electric fan market in India increased at 13 per cent CAGR between FY08-17 to reach Rs 70 billion
(US$ 1.1 billion). Around 22.6 million fans were produced in the country in FY18(up to February 2018).
Electric fans
 Penetration of electric fans in rural areas is expected to reach 76-78 per cent in 2019-20 from 65 per cent in
2017.
Source: CEAMA, Electronic Industries Association of India, Mirc annual report, Edelweiss Investment Research , CMIE, Intex Technologies, TERI- Improving Air Conditioners in India,
Motilal Oswal

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 KEY PLAYERS IN THE CONSUMER DURABLES
SECTOR … (1/2)
 White goods industry in India is highly concentrated. In washing machines and refrigerators, top five players have more than 75 per cent market
share, while in air conditioners and fans it is around 55-60 per cent. On the other hand, kitchen appliances segment is fragmented with top five
players having 30-35 per cent market share.

 As of April 2019, Haier ranks as the fifth largest domestic consumer durable brand and is aiming to attain the third position in the market.

Company Product category

ACs, refrigerators, specialty cooling products including mortuary chambers and cold storage

ACs and cooling equipment

Refrigerators, ACs, washing machines, microwave ovens, DVD players, digital-imaging products and
audio-visual products

ACs and refrigerators

TVs, audio-visual solutions, computers, mobile phones, refrigerators, washing machines, microwave
ovens, vacuum cleaners and ACs

Note: This list s indicative

Source: Edelweiss – Consumer Durables Honing the home stretch September 2018

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 KEY PLAYERS IN THE CONSUMER DURABLES
SECTOR … (2/2)

Company Product category

LCDs, washing machines, DVD players, ACs, microwave ovens, mobile phones, projectors and
display products

TVs, home theatre systems, DVD players, audio products, personal care products, household
products, computers and phones

TVs, home theatre systems, DVD players, mobile phones, digital cameras, camcorders, refrigerators,
ACs, washing machines, microwave ovens and computers

TVs, projectors, DVD players, audio systems, home theatre systems, digital cameras, camcorders,
computers, video-gaming products and recording media

TVs, DVD players, microwave ovens, refrigerators, washing machines, ACs and power backup
solutions

Refrigerators, washing machines, microwave ovens, water purifiers and power backup solutions

Note: This list s indicative

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 Consumer Durables

RECENT TRENDS
AND STRATEGIES
 NOTABLE TRENDS IN THE CONSUMER DURABLES
SECTOR

 Xiaomi will enter the white goods segment in India in 2019, while Transsion Holdings will launch its entire
range of consumer durables in the country during the year.
 In January Hero Electronics, part of the Hero Group announced that it’s entering consumer goods and will
Expansion into new
launch 10 artificial intelligence (AI) products in the next five years.
segments
 Hyundai Electronics has ventured into the growing Indian consumer electronics and home appliances market
 Livpure, a consumer electronics firm in India, has entered the air conditioner segment by launching smart air
conditioners on Flipkart.
 Panasonic looks beyond consumer durable business and plans to expand in business-to-business solutions
 Rentals of home appliances are growing in urban areas of India due to free add-on services like relocation
and periodic maintenance which are not available in the ownership model.
Shared Economy
 Start-ups like Rentomojo, Furlenco and Rentickle have come up in this space and offer rentals on furniture,
appliances and other products.
 Luxury brands like Porsche, Jimmy Choo are increasing their store presence
 Luxury brands are launching their own websites to cater to Indian luxury brand market
Growing luxury market
 The segment of affordable luxury brand has captured the young Indian buyer’s attention and is said to be
growing at 40 per cent per annum, according to Euromonitor.
 Consumer durables loans in India increased by 83 per cent to 19.5 million in 2017-18.

Increased affordability of  Advancement in technology and higher competition are driving price reductions across various consumer
durable product segments such as computers, mobile phones, refrigerators and TVs. With the initiative of
products “Make in India” campaign, many domestic and Chinese manufactures are investing in India to set up their
manufacturing plants which would produce more affordable products.
 Leading consumer durable companies have started outsourcing manufacturing to local contact
manufacturers like Dixon, Amber and Jabil. Amber contract manufactures ACs for Voltas, Hitachi, Daikin,
Contract Manufacturing Godrej and others while Dixon contract manufactures washing appliances, phones and other products for
various brands.
Source: CEAMA, India Retail Report, Aranca Research, Business Line, IMAP India, News Sources

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 STRATEGIES ADOPTED

 To reduce the price of their products, Xiaomi followed a totally different approach. Rather than using
traditional advertising it has used inexpensive social media campaigns which helped the company in
producing mobile phones at competitive prices in the market
Powerful competitive  Samsung has acquired JBL and Harman Kardon for US$ 8 billion, other brands to come under Samsung
strategy are Mark Levinson, AKG, Lexicon, Infinity and Revel, Bowers and Wilkins and Bang and Olufsen brands.
 According to a report by techARC, smartphones companies plans to spend Rs 300 crore (US$ 4.16 million)
on digital marketing at both mobile and web platforms in India.

 More brands are having a uniform pricing strategy in order to expand retail sales.
Overhauling of distribution  Focus on tier II/III towns has increased to have wider distribution networks.
framework  Companies like Bajaj Electricals and Crompton Consumer are working on real time demand feedback to
reduce turn around time (TAT).

 India is the land of occasions and festivals, therefore, customers are offered great deals
 For instance the prices of products during Diwali, New Year, etc go down and customers are offered with
Occasion based marketing
great deals. Such strategies are adopted so as to enhance revenues plus to maintain the goodwill amongst
buyers.

 The strategy of flash sales helped Xiaomi to emerge as India's largest-selling smartphone brand between
Sales strategies September- December 2017. It accounted for 31 per cent of the total sales between January – March 2018.

 Companies also plan to increase the use of environment-friendly components and reduce e-waste by
promoting product recycling
Focus on energy efficiency  India has made it mandatory for manufacturing companies to control emissions from climate-damaging
refrigerants.
 In March 2018, Blue Star launched 40 new models of highly energy efficient air conditioners

Notes: ISEER - Indian Seasonal Energy Efficiency Ratio

Source: Aranca Research, News Articles

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 Consumer Durables

GROWTH DRIVERS
 STRONG DEMAND AND POLICY SUPPORT DRIVING
INVESTMENTS

Growing demand Policy support Increasing investments

Expanding
Higher real production and
Setting up of EHTPs
disposable incomes distribution facilities
in India

Increasing
Easy consumer liberalisation, Increased R&D
Inviting Resulting in
credit favorable FDI activity
climate

Policies like National

Providing support to
Growing working Electronics Mission
global projects from
population and Digitisation of
India
television

Reforms like
simplified labor laws
and Technology
Upgradation Fund
Scheme
Notes: EHTP - Electronic Hardware Technology Park, R&D - Research and Development
Source: Aranca Research

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 INCOME GROWTH WILL BE THE KEY DRIVER OF
DEMAND FOR CONSUMER DURABLES

 Demand for consumer durables in India has been growing on the

Visakhapatnam
GDP Per Capitaport
at Current
traffic (million
Prices*tonnes)
(US$)
back of rising incomes; this trend is set to continue even as other
factors like rising rural incomes, increasing urbanisation, a growing
middle class and changing lifestyles aid demand growth in the sector 3,500

 Significant increase in discretionary income and easy financing

3,274
schemes have led to shortened product replacement cycles and 3,000

3,007
evolving life styles where consumer durables, like ACs and LCD
TVs, are perceived as utility items rather than luxury possessions

2,762
2,500

2,539
 Growth in demand from rural and semi-urban markets to outpace

2,334
demand from urban markets
2,000

2,135
 Growth in online retailing is a key factor to reach out as a newer

1,983
channel for buyers, with increase in demand.

1,749
1,500

1,639
1,610
 Per capita GDP of India is expected to reach US$ 3,274 in 2023 from

1,486
1,482
US$ 2,135 in 2018.
1,000
 Non metro markets namely Vishakhapatnam, Bhopal, Vadodara,
Chandigarh etc. have grown rapidly regarding consumption,
becoming the main target markets, posing a huge potential 500
transforming themselves into new business centres as compared to
metro cities.
0

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023
Notes: * estimates after 2013
Source: World Bank, Aranca Research, RedSeer Consulting, International Monetary Fund, World Economic Outlook Database, April 2018

20 Consumer Durables For updated information, please visit www.ibef.org

 POLICY SUPPORT AIDING GROWTH IN THE SECTOR

 Reduced custom duty on certain inputs like metals, wires, cables, refrigerators compressor parts will promote
Customs duty relaxation the production of consumer electronics in India. Custom duty on LCD/LED TV reduced to nil from 10 per cent

 100 per cent FDI is permitted in electronics hardware-manufacturing under the automatic route
 FDI into single brand retail has been increased from 51 per cent to 100 per cent; the government is planning
Encouragement to FDI to hike FDI limit in multi-brand retail to 51 per cent.
 As per revised FDI policy, government has introduced certain bars for ecommerce platforms from selling on
their websites and imposes a limit on how much one supplier can sell on their portal.

 EPCG allows import of capital goods on paying 3.0 per cent customs duty
EPCG, EHTP schemes  EHTP provides benefits, such as duty waivers and tax incentives, to companies which replace certain imports
with local manufacturing

National Electronics  In February 2019, the Government of India approved the National Policy on Electronics 2019. This policy
aims to create an ecosystem for a globally competitive electronic manufacturing sector and to achieve a
Policy and Government turnover of about US$ 400 billion by 2025, target production of 1 billion mobile handsets for export. It also
Initiatives aims to generate 10 million employment opportunities in the country by 2025.

Notes: EPCG - Export Promotion Capital Goods scheme, EHTP - Electronic Hardware Technology Park Scheme, SAD- Single Administrative Document ITA-1 - Information Technology
Agreement, Ministry of External Affairs
Source: DIPP, Make in India, Aranca Research

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 RECENT INVESTMENTS BY KEY PLAYERS

 Intex Technologies will invest around Rs 60 crore (US$ 9.27 million) in 2018 in technology software and Internet of Things (IoT) start-ups in India
in order to create an ecosystem for its consumer appliances and mobile devices.

 Bosch Home Appliances to invest US$ 111.96 million to expand in India.

 Micromax plans to invest US$ 89.25 million by 2020 for transforming itself into a consumer electronics company.

 In January 2018, Panasonic started its first refrigerator plant in India with an annual production capacity of 500,000 units with an investment of Rs
115 crore (US$ 17.76 million).

 British technology company Dyson will invest around Rs 1,300 crore (US$ 200 million) in the Indian consumer durables sector by 2023.

 In June 2018, Bajaj Electricals acquired Nirlep, a kitchenware manufacturing company for Rs 42.50 crore (US$ 6.34 million).

 In July 2018, Samsung announced an investment of Rs 5,000 crore (US$ 745.82 million) for expansion of manufacturing capacity to 120 million
from 68 million devices at its Noida plant in India.

 In August 2017, V-Guard acquired 49.43 per cent stake in GUTS Electro-Mech.

 In May 2017 Havells completed acquisition of Lloyd consumer durables business for an enterprise value of Rs 1,600 crore (US$ 248.2 million)

 In October 2017, Flipkart launched its private label ‘Marq’ for selling large appliances in India.

 In February 2019, Haier announced an investment of Rs 3,000 crore (US$ 415.80 million) as it aims a two fold increase in its revenue by 2020.

 Oppo and Vivo, mobile phone makers, have decided to make the key components in India in the next one year. Samsung will also start
manufacturing mobile phone components from April 2020 in its Noida facility, which is their largest mobile phone manufacturing plant in the
world.

 As of April 2019, Xiomi is making huge investments to expand into offline presence and expects the offline stores to generate half of the handset
sales in India by the end of 2019.

Notes: R&D - Research and Development, MSIPS - Modified Special Incentive Package Scheme, Ministry of External Affairs
Source: Company websites, Aranca Research, New sources

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 Consumer Durables

OPPORTUNITIES
 GROWING TELEVISION MARKET

 DTH players are expected to get largest share in phase IV area of Visakhapatnam port traffic (million tonnes)
Active DTH subscribers (million units)
digitisation market

 Digitisation may lead to complete switchover from analogue cable to

Digital Addressable Systems in a phased manner 80
70
 Active DTH subscribers with private operators in the country 67.56 70.49
60
increased from 62.65 million in December 2016 to 70.49 million in 62.65
50 55.96
December 2018. 40
 TV penetration in the country has increased more than two times to 30
reach 66 per cent in 2018(as of March 2018) from 32 per cent in 20
2001. Small towns and rural markets are the key growth drivers of 10

television’s growth in India. Out of 197 million TV households in 0

Dec '15 Dec '16 Dec '17 Sep '18
India, 109 million are from rural India.

• As of December 2018, active DTH

Households with TVs in subscriber base with private • Around 197 million television households
India operators in India stood at 70.49 in 2018(as of March 2018).
million users

Source: TRAI, *BARC India Universe Update July 2018

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 APPENDIX: BENEFITS TO CONSUMER DURABLES
AND WIDER RETAIL SECTOR FROM FDI POLICY

Benefits of FDI in Indian Retail

Increase in Infrastructure Benefiting Indian

Removing middlemen
employment investment manufacturers

Sector Entry route FDI limit

Whole sale cash and

Automatic 100%
carry trading

Single brand product

DIPP 100%
retailing

Multi brand, front end

DIPP 51%
retail

Source: DIPP, Aranca Research

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 KEY RETAIL RELATED FDI POLICIES THAT WILL
IMPACT CONSUMER DURABLES

 According to the Department for Promotion of Industry and Internal Trade, during April 2000 – March 2019, FDI inflows into the electronics sector
stood at US$ 2.36 billion.

 Minimum investment cap is US$ 100 million

 30 per cent procurement of manufactured or processed products must be from SMEs
 Minimum 50 per cent of the first minimum tranche of US$ 100 million must be invested in back-end
infrastructure (logistics, cold storage, soil testing labs, seed farming and agro-processing units)
51 per cent FDI in multi
 Removes the middlemen and provides a better price to farmers
brand retail
Status: Approved  50 per cent of the jobs in the retail outlet could be reserved for rural youth and a certain amount of farm
produce could be required to be procured from poor farmers
 To ensure the Public Distribution System (PDS) and Food Security System (FSS), government reserves
the right to procure a certain amount of food grains
 Consumers will receive higher quality products at lower prices and better service

 Products to be sold under the same brand internationally

 In 2015, according to revised FDI regulations single brand retail companies if desire to sell on ecommerce
platform would be allowed only if they have licence for setting up physical outlets
100 per cent FDI in single
 Sale of multi brand goods is not allowed, even if produced by the same manufacturer
brand retail
 For FDI above 51 per cent, 30 per cent sourcing must be from SMEs
Status: Policy passed
 Any additional product categories to be sold under single brand retail must first receive additional
government approval
 “Make in India” initiative to further strengthen the investments coming to India

Source: Aranca Research, DPIIT

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 Consumer Durables

KEY INDUSTRY
ASSOCIATIONS
 INDUSTRY ASSOCIATIONS

Agency Contact Information

Block 'J' Mahapalika Marg, Mumbai–400 001

Tele fax: 91-22 22621612/2265 9715
Consumer Guidance Society of India
E-mail: cgsibom@mtnl.net.in
Website: www.cgsiindia.org

111/112, Ascot Centre, Next to Hotel Le Royal Meridien,

Sahar Road, Sahar, Andheri (E), Mumbai–400099.
Retailers Association of India
Tel: 91-22-28269527—28
Fax: 91-22-28269536
Website: www.rai.net.in
3/242, Rajendra Gardens, Vettuvankeni, Chennai,
Tamil Nadu–600 041
Consumers Association of India
Tel: 91-44-2449 4576/4578
Fax: 91-44-2449 4577
E-mail: consumersassnofindia@vsnl.net
5th Floor, PHD House
4/2, Siri Institutional Area, August Kranti Marg
Consumer Electronics and Appliances Manufacturers Association New Delhi-10 016
Telefax: 91- 11- 46070335, 46070336
E-mail: ceama@airtelmail.in
Website: www.ceama.in
ELCINA House, 422 Okhla Industrial Estate, Phase III
New Delhi -110020
ELCINA Electronic Industries Association of India
Tel: 91- 11- 26924597, 26928053
(Formerly Electronic Component Industries Association)
Fax: 91- 11- 26923440
E-mail: elcina@vsnl.com
Website: www.elcina.com

28 Consumer Durables For updated information, please visit www.ibef.org

 Consumer Durables

USEFUL
INFORMATION
 GLOSSARY

 CAGR: Compound Annual Growth Rate

 Capex: Capital Expenditure

 CENVAT: Central Value Added Tax

 EHTP: Electronic Hardware Technology Park

 EPCG: Export Promotion Capital Goods Scheme

 FDI: Foreign Direct Investment

 FY: Indian Financial Year (April to March)

 So FY10 implies April 2009 to March 2010

 LCD: Liquid Crystal Display

 R&D: Research and Development

 US$ : US Dollar

 Wherever applicable, numbers have been rounded off to the nearest whole number

30 Consumer Durables For updated information, please visit www.ibef.org

 EXCHANGE RATES

Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)

Year INR INR Equivalent of one US$ Year INR Equivalent of one US$

2004–05 44.95 2005 44.11

2005–06 44.28 2006 45.33
2006–07 45.29 2007 41.29
2007–08 40.24 2008 43.42
2008–09 45.91
2009 48.35
2009–10 47.42
2010 45.74
2010–11 45.58
2011 46.67
2011–12 47.95
2012 53.49
2012–13 54.45
2013 58.63
2013–14 60.50
2014 61.03
2014-15 61.15
2015 64.15
2015-16 65.46
2016-17 67.09 2016 67.21

2017-18 64.45 2017 65.12

2018-19 69.89 2018 68.36

Source: Reserve Bank of India, Average for the year

31 Consumer Durables For updated information, please visit www.ibef.org

 DISCLAIMER

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared by Aranca in consultation
with IBEF.

All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. The same may not be reproduced,
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incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval
of IBEF.

This presentation is for information purposes only. While due care has been taken during the compilation of this presentation to ensure that the
information is accurate to the best of Aranca and IBEF’s knowledge and belief, the content is not to be construed in any manner whatsoever as a
substitute for professional advice.

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in this presentation and nor do
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Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any
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32 Consumer Durables For updated information, please visit www.ibef.org