Indian Business Success Stories - Part 3
Indian Growth Story in Electronics Sector
The developed world thinks that India is a backward country and you can find comments to such effect spread all over the internet. But the fact is India is one of the largest markets of consumer products in the world especially in electronics field. Indian growth rate in consumer electronic is constantly growing at a brisk pace and will remain so until next decade or so.
I will use financial terms in American dollars for the benefit of readers that India is all set to reach $20 billion target annually within a very short time in consumer electronic consumer sector. According to Consumer Electronic & Appliances Market Association (CEAMA) the apex Industry Chamber for the Consumer Electronics and Home Appliances Industry of India, consumer electronics sector in India is growing at a rapid rate and it will remain the same during next decade.
There is no denying the fact that India did not do well in the first 2 decades after independence especially in electronics sector but its entire information source was limited to radio transmission but the story today is altogether different especially after liberalization of Indian economy in eighties. The Indian market today is full of consumer electronic items including costly mobile phones, cameras, television sets, refrigerators, air conditioners, computers etc.
The Industrial Revolution
Actually the entire revolution in electronics sector in India had started in 1965 itself but it was in initial stage. India did not start its television until 1959 that was limited to few cities but it spread considerably in seventh decade of last century when it spread in several metro cities. The Asian games held in 1982 changed the entire scenario of TV viewing in India but still dependent on imported TV sets. Same was the story in refrigerator industry as we did not have a refrigerator manufacturing unit until Kelvinator came to India in 1960.
Today, the Indians are one of the largest buyers of mobile phones, refrigerators, camera, TV, air conditioners, cars, washing machines and computers. India is attracting investment in manufacturing sector from all over the world. In fact super powers are trying their best for entering into Indian markets. India imports millions of mobile handsets today but the recently introduced program “Make in India” by our Prime Minister is gaining momentum and we shall soon be self sufficient in hardware sector and you all know we are already undisputed king in software sector.
Home Equipment and Appliances in India
It would sound like boasting but the fact that India is among the top countries with most number of domestic equipment consumers. Indian domestic manufacturers are not only producing large number of equipments and appliances but producing them with in competition with world’s best manufacturers. Companies like Super Domestic, TTK Prestige, Bajaj Electric, Hawkins, Havells India, Siemens, Crompton Greave, Godrej, Samsung India, Voltas, Usha etc are doing a wonderful job providing quality appliances for Indian consumers and for export purpose.
Indian manufacturers took a hint from their foreign counterparts after the independence and soon entered in collaboration with different foreign companies but we have several indigenous companies playing the role of leaders among gadget manufacturers. If we go by the recent surveys the domestic appliances refrigerators, washing machines, air conditioners, kitchen chimney, microwave oven are fast reaching to maximum Indian households at a brisk rate and refrigerator still remains the most sold appliance of all these equipments.
India and Indian manufacturing sector has improved a lot in last couple of decades. For instance, an Indian couple living aboard introduced a bread making appliance two years before which became an instant hit and now being sold in large numbers by different manufacturers. The story of Indian manufacturing sector began post independence but Indian government kept large manufacturers out of domestic appliances sector but kept this limited to smaller and cottage industry sector with a maximum investment limit. The appliances like ceiling fans, heaters, Irons and table fans were reserved for small industry sector only.
The bigger groups like Bajaj and Usha were selling these products under their own brand name with their strict quality control but when the limit was taken off later and the bigger players like Birla and Tata entered into the field of manufacturing, the Indian domestic appliances scenario changed entirely. Now our appliances have become smarter, consume lesser electricity and work according to need of the consumer. For instance the washing machines manufactured a decade back had a single speed rotation but the modern technology used now let the washing machine do everything on automatic basis from water level to the drying point. Overall the Indian appliances and equipment has reached to a point where we can compete with international market.
The Increasing Electrical Equipment Market in Rural India
The demand of electrical equipment is shifting toward rural India which is growing by leaps and bounds in last decade or so. And it is interesting to note that the electrical equipment is not limited to ceiling fans, table fans and electric bulbs but villagers are buying geysers, blowers, heaters, LED lights, coolers, television and air conditioners. Almost 30-40% rural households own refrigerators and 10 to 15% have air conditioners at present which is expected to double by 2020.
There are different reasons for increasing sales of electrical equipment in rural sector so far limited to urban or semi urban areas is increased power supply, facility of easy installment bases payment and better awareness in villagers through television advertisements. Crompton Greave, Havells India, GEC, HBL Power, Emco, Techno Electric, Swelect Energy, Bharat Bijlee, Jyoti, Easun Reyrl, Lakshmi Ele and IMP Powers are some of the thousands of Indian electrical equipment manufacturers with target in billions from rural markets.
Rural Market Consumers
As per the market surveys the existing share of rural market which is 35% at the present time is increasing at with an annual growth of almost 25%. We can include the existing users who are willing to replace their existing equipment with new ones which consume lesser electricity mainly refrigerators and air conditioners and of course the newly introduce LED lights. It must be worth mentioning at this point that the LED bulbs have already started showing their impact on old fashioned high power consuming bulbs especially in Bihar state but most of these units are fast converting to production of LED bulbs.
The rural India is fast converting to conventional style and becoming high-tech with increased power supply taking to washing machines, induction cookers, hotplates, heaters, fridges, geysers, coolers and air conditioners etc. As the trends show the demand of electrical equipment is expected to reach $100 billion by the year 2025. The Indian markets and manufacturers of electrical equipment along with consumers are expecting a lot in coming years.
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