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Microwave ovens likely to clock 25 pc growth in sales

Microwave ovens likely to clock 25 pc growth in sales

Author | exchange4media News Service | Saturday, Jun 26,2004 9:24 AM

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Microwave ovens likely to clock 25 pc growth in sales

The surprise winner in the durables market last year, the microwave ovens (MWO) category, is looking at a 25 per cent increase in sales this year.

The category, which is still at a nascent stage, saw a growth of 26.5 per cent in the financial year 2003 at an estimated size of 2,15,000 units over 2002, with the Korean companies LG and Samsung cornering a major chunk of the market.

A look at the demand position of the category reveals that the northern and western regions together account for 63 per cent of the market and the eastern region only amounts to 15 per cent. Besides, the profile of the MWO market is predominantly urban in nature, with the top seven cities accounting for around 58 per cent of sales.

The supply characterisation of the industry shows that it is suffering from overcapacity compared with the existing demand, according to an ICRA report. Even a significant portion of the existing capacity is not being utilised as large proportions of demand are being met through imports.

As per the analysis, in the financial year 2003, the major brands were LG, Samsung and Kenstar, with LG emerging as the market leader. LG's market share has risen to 35.8 per cent in 2003 from 20.9 per cent in the calendar year 1999.

During 2003, the company had a market share of 32.2 per cent in grill segment, 37.3 per cent in the solo segment, and 41.3 per cent in the convection segment.

According to ICRA, while it had a market share of 40.7 per cent in the southern region, its market share was 37.7 per cent in the North, 35.8 per cent in the West and 23.9 per cent in the East.

Samsung's market share also increased to 25.6 per cent during this period. In the grill segment, the company had a market share of 21.1 per cent, 23.3 per cent in the solo segment, and 36.3 per cent in the convection segment.

Kenstar enjoyed a market share of 16 per cent. In the grill segment, it had a market share of 21.4 per cent, 11.6 per cent in the solo segment, and 9.8 per cent in the convection segment.

When compared to the significant increase in the market share of the Korean players, the share of BPL has declined from 19.1 per cent during the calendar year 1999 (the market leader) to during the financial year 2003. "LG is the market leader in all the three segments on the basis of utility," the report states.

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