India’s consumer durables market is booming, driven by premiumization, organized sector growth, and government initiatives. Crompton Greaves reports strong growth.
New Delhi, Jun 20 (PTI) The electrical consumer durables (ECD) industry in India is poised for a significant growth, driven by premiumisation, a shift from unorganised to organised markets, and category expansion, said the latest annual report of Crompton Greaves Consumer Electricals Ltd (CGCEL).
Moreover, the growing middle class also represents a significant growth catalyst for the consumer durables sector.
“As disposable incomes increase, a broader segment of the population has the capacity to purchase consumer durables. An expanding consumer base directly translates to heightened demand across diverse product categories, creating substantial market opportunities,” it said.
The Indian middle class is projected to reach 47 per cent of the population by 2030-31, it said.
Besides, consumers are increasingly prioritising products that ensure health and well-being, which presents a significant opportunity for companies to develop smart products that align with consumer preferences.
“By introducing premium feature-rich products that offer health benefits, businesses can capture a valuable market share,” it said.
According to CGCEL, the growing trend for smart homes, equipped with IoT and AI-enabled products, has uncovered new avenues of growth for the consumer durables sector.
“Products that seamlessly connect with other smart devices and contribute to a comprehensive smart home ecosystem are experiencing substantial demand. This presents a valuable opportunity for companies to innovate and capture a lucrative market.
“Besides, government schemes such as the ‘PM Kusum Scheme’ for solar pumps, ‘housing for all’, ‘power for all’, and rural electrification are anticipated to significantly contribute to the progress of the consumer durables sector.
Addressing shareholders, CGCEL Chairman D Sundaram said: “ECD industry in India is poised for significant growth, driven by premiumisation, a shift from unorganised to organised markets, and category expansion.”
Now consumers are seeking greater value from brands through an emphasis on aesthetics, durability, performance and energy saving.
“These have been underpinned by an increased emphasis on adhering to regulatory standards governing energy efficiency and safety along with supportive government policies around renewable energy and ‘Make in India’,” he said.
CGCEL is well-positioned to leverage these emerging opportunities and focus on building consumer-centric products that enhance comfort, convenience and drive higher performance.
The company is implementing Crompton 2.0, which was launched in June 2023 with a renewed focus on consumer centricity, business growth and profitability through innovations.
CGCEL’s standalone revenue in FY25 was at Rs 7,028.29 crore and its profit after tax was at Rs 563.18 crore.
