New tech gives consumer durables a modern face

It happened this year, so did other new technology products in the durables segment.

The year 2010 saw companies betting big on the High Definition Television (HDTV) with players including LG, Samsung, Onida and Sony expanding the market by launching LCD and LED TVs on the platform. As if this weren’t enough, most of them launched 3D televisions in India, with Samsung taking the first step to introduce it earlier this year with prices ranging between Rs 2 lakh to Rs 4 lakh. Besides, other home appliances like refrigerators and washing machines were not far behind. As silent direct drive technology made its presence felt, noisy washing machines took a back seat. Companies like LG pushed forward the technology.

“The year 2010 for consumer durable industry witnessed upcoming trends in the market with advanced and smart technologies for consumers. The consumer trend has shifted towards premium, digital, big size and aesthetics,” Consumer Electronics and Appliances Manufacturers Association (CEAMA) said. According to a study done by CEAMA, the size of Flat Panel Display( LCD + Plasma) is set to be 4.8 million units in 2011 from 3 million units this year. While the refrigerator market is estimated to be 12 million units in 2011 from 10 million units, the washing machine market is grow to 6 million units by next year from the present 5 millions.

“Though CRTVs still occupy a significant portion of the television market, this year we have seen a growing trend among customers, shifting towards flat panel,” Haier India MD Eric Briganza said.

On the back of robust growth of these categories, CEAMA predicted that the sector would grow at 20 per cent every year for the next five years. It currently stands at Rs 35,000 crore. In order to keep pace with the growing market, many companies announced fresh investments. Over Rs 540 crore worth of investments were announced by companies to set up new lines and expand their existing capacities.

While Samsung said it will invest $75 million (Rs 343.9 crore) to set up a new refrigerator manufacturing unit, Panasonic  announced its plans to set up its first facility for making equipment used in arc welding at an investment of Rs 95 crore.

Haier India also said it is in the process of investing Rs 100 crore to set up a new line at its Pune facility to produce air conditioners and washing machines.

Consumers, however, paid more for the products as several multinational giants passed on the hike in excise duty. Nevertheless, growth of the sector picked up with several consumer durables firms cashing in during the festive season, expecting as much as 70 per cent jump in sales over the last year.