Durables firms log double-digit sales growth

Consumer durable companies are reporting a healthy double-digit growth as domestic consumers are graduating from low-end to the higher-end products .

This week, market leader LG Electronics "" with Rs 5,000 crore sales turnover "" reported a 20 per cent growth in sales from its Indian operations in the first six months of the year.

According to the company, the growth was spread over all categories, including export and GSM "" the two main focus areas of the company.

Another Korean major Samsung said it has reported 35 per cent growth compared with 16 per cent last year in the consumer electronics segment.

"The flat panel TV category along with home appliances (split air- conditioners and fully automatic washing machine category) were in for a heavy demand in the first half of 2007," said a company spokesperson.

Japanese major Sony India has reported 26 per cent growth, boosted by sales of Bravia LCD TVs, cyber-shot and Handycam digital products, VAIO Notebooks and gaming console businesses.

Philips said the Industry is growing fast. "LCD TVs, portable music systems, home theatres are the categories which are fast-growing in India and it is due to lifestyle changes," said Gunjan Srivastava, director, entertainment solutions, consumer electronics, Philips Electronics India.

Company executives said the sale has almost doubled in the last six months. "Products in the entertainment sector are going to be the growth drivers. Home theatres are going to be another segment which will grow since Indians love movies," said Srivastava.

Keeping with the trend in consumer durables towards marketing IT products, Philips is launching accessories and IT peripheral products by next month. Srivastava said, "It's a large segment."

Sony India has major expansion plans through retail outlets on the lines of Sony World and Sony Exclusive. There are 250 large and small format retail stores and plans to hike them to 290 stores.

The company also plans to introduce thin next generation TV display, incorporating OLED (organic light emitting diode) technology. The television will be launched early next year.