Festive demand to fuel durables' sales

Players expect a record Rs 10,000 crore bonanza this season

It is 'make hay' season for the Rs 25,000 crore consumer electronics and appliances industry with 30-35 per cent of its annual sales expected to come from the ongoing festive season.

This festival season, which began with Ganesh Chaturthi in Maharashtra and will run all the way to the year-end, manufacturers are expecting a record Rs 10,000 crore bonanza, which means an impressive 20 per cent rise over last year. This year, electronics products alone are expected to account for over Rs 7,500 crore with the remaining Rs 2,500 crore sales coming from kitchen appliances. Again in electronics products, the television segment is going to rule the roost all the way.

Last year, according to industry estimates, companies managed to sell appliances and electronic goods worth Rs 8,500 crore during the same period. This season, companies have set impressive sales targets for themselves.

Leading the pack of consumer electronics players will be the South Korean company's Indian arm LG Electronics India, which is targeting Rs 2,500 crore sales for the festive period. Others, including Samsung India, expect to make Rs 850 crore, while smaller players like Panasonic are eyeing sales worth Rs 100 crore. The targets are in line with the companies' market shares.

The colour television segment is expected to see a high-pitched contest with the high-end flat panel TV range serving as the ultimate battleground. While the global market for flat panel TVs is growing at about 130 per cent, in the domestic figure is ruling higher at nearly 160 per cent.

Industry officials expect that leading up to this Diwali, Indians would buy at least 1.5 million colour televisions, of which, the high-end flat panel televisions "� plasma screens and LCD screens "� will only account for a minuscule 30,000-40,000 units. The seemingly low volumes will still fail to deter companies from slugging it out for market shares as margins in this segment are the highest, in this high-stake game.

"The industry is betting big on LCDs and plasma screens to lead growth in the colour television market. That's why, you will find the best offers for the season in these segments," said Pradeep Tognatta, director (sales & marketing), Samsung India Electronics.

The officials estimate that two months "� September and October "� alone will contribute 45,000 LCD televisions and 8,000-10,000 plasma televisions in terms of sales. Interestingly, annual sales of LCDs are estimated at 1,40,00-1,50,000 units, while that of plasma televisions at 50,000 units for 2006.