The Federation of Indian Chambers of Commerce and Industry (FICCI) has painted a rosy picture on growth prospects for the consumer durables industry this fiscal.
In a survey, FICCI has found that that most of the consumer durables segments are set to see a double-digit growth in the current fiscal.
While the colour television segment is expected grow by 15-20 per cent, the projected growth for the VCD/MP3 player segment is 20 per cent, 25 per cent for DVDs, 5-10 per cent for refrigerators, 20-25 per cent for air-conditioners, 5-10 per cent for washing machines and 25 per cent for microwave ovens.
Releasing the findings of the survey, the FICCI President, Mr Onkar S. Kanwar, said, "Competition and the narrowing down of the price differential between branded and non-branded goods are inducing companies to offer efficient after-sales service and support. And this is influencing customer preference in favour of branded products."
The survey also highlights the shift towards the organised segment. The share of the unorganised segment has come down sharply to 8-10 per cent from 40-50 per cent, as the price differential between the two segments narrows down.
It also points out that rural India offers a huge growth opportunity for consumer durables manufacturers. While the urban consumer durables market is growing annually at 7-10 per cent, the rural market is zooming ahead with an annual growth of 25 per cent.