Despite the recent hike in refrigerator prices by about 6-7%, the Rs 1,100 crore frost-free refrigerators segment, is poised to grow at 25% in 2005. It grew by 20% in 2004. The total size of the refrigerator market in India is Rs 3,320 crore.
According to industry players, in 2003-04, consumers upgradation level raised between 175 and 190 litres for frost-free refrigerators (from a level of 165 to 175 litres of a direct-cool market). This led to the growth of market by 20%, last year. When contacted, Anil Arora, product group head - refridgerators, LG Electronics India Private Ltd said, “While good rains in 2004 will yield good harvest returns of refrigerators sales, the forthcoming ‘Mini-World Cup India-Pak Cricket Series’ is expected to provide boost to the industry during first quarter of 2005.
LG has recently crossed one million mark of selling frost-free refrigerators in India in 2004. And, we intend to be the main growth drivers to lead the market growth by an additional 5%.” Ajay Kapila, vice-president (sales and marketing), Electrolux Kelvinator Ltd, feels that the purchase parity of consumers have shifted now. Meanwhile, Kamal Nandi, product head, appliance division of Godrej & Boyce Manufacturing Company Ltd informs, “We have recently identified that the frost-free refrigerators with capacities between 300 and 400 litre will gain momentum which will lead to the growth, in 2005.”
Even as Electrolux Kelvinator sees demands to be converted into sales, Godrej & Boyce will fill the need gap and launch new series of refrigerators between 300 and 400 litre capacity in 2005. Even as LG hopes to grow at the rate of 68% in frost-free refrigerators segment in 2005, and, achieve a market share of 50%, Videocon hopes to grow its market share from 13% to 16%. On the other hand, Electrolux Kelvinator hopes to achieve 40% volume growth and spur its market share from 9% to 12%, in 2005, meanwhile, Godrej hopes to grow its market share in the refrigerators segment from 20% to 22% in 2005.