Consumer Durables

Consumer Durables Sector Revenue in India

KEY PLAYERS
(FY 2019-2023) (in billion rupees)

MARKET PROJECTIONS CONSUMER DURABLES SUB SECTORS

• Indian Room AC Market is projected to reach ₹50,000 crore (US$ 5.6 billion) by FY29.

• By 2025, India is expected to become the 5th-largest Consumer Electronics & Appliances market globally.
White Goods Brown Goods
(Traditionally large household appliances focused on (Primarily entertainment, communication, or
• The consumer electronics & home appliances market is expected to grow by US$ 2.3 billion from 2022 to utility and home comfort) personal care electronics)
2027, at a CAGR of 1.31%.

• The smartphone market is projected to grow 3% YoY in 2025, driven by improved consumer sentiment
and government initiatives.

• Global consumer electronics market was valued at US $815.16 billion in 2024

• Global consumer electronics market is projected to reach US $1,467.9 billion by 2032, with a CAGR of
7.85%

• India’s consumer electronics & appliances market stood at US $86.08 billion in 2024, with an expected
CAGR of 12.83% through 2030

SUPPLY CHAIN ANALYSIS

Sourcing Manufacturing Logistics Distribution Sales & Marketing After-Sales Service Reverse Logistics
Raw materials and Assembly by Inbound and outbound General trade, Branding, promotions, It involves Installation, Product returns,
components (chips, OEMs or EMS modern retail
plastics, motors) from players (e.g., transport + regional (Croma, Reliance), EMI offers, D2C repair, warranty, spare recycling, e-waste
global/domestic Dixon, Foxconn) in warehousing and e-commerce channels parts disposal
suppliers India or abroad platforms
 Consumer Durables
PORTER’S 5 FORCES ANALYSIS
Threat of New Entrants Bargaining Power of Buyers Bargaining Power of Threat of Substitute Competitive Rivalry
LOW HIGH Suppliers Products
LOW LOW HIGH
• High capital investment and • Switching between brands or
economies of scale are essential • Key raw materials are • Few truly new product • Numerous well-funded
for manufacturing products involves minimal standardized and sourced categories have emerged in competitors operate in the
competitiveness from competitive, open recent years market
cost for consumers
markets
• Difficult for new players to • Consumers have access to a • Many suppliers depend • Given the industry’s broad • Intense competition is evident
replicate the well-established heavily on large consumer scope, most innovations or in areas like product variety,
wide range of choices across pricing strategies, innovation,
distribution networks of existing durable companies for category expansions come
firms different product lines business from established players and promotional campaigns

VALUATION Growth Drivers Growth Drivers

• Most consumer durable firms in India are mature and profitable, with
• Rising incomes and expanding middle class
strong free cash flows. • Imported components (chipsets,
driving demand for aspirational appliances.
• DCF (Discounted Cash Flow) is the preferred valuation method due to the compressors, display panels) contribute to
• E-commerce and EMI financing improving
stable cash flow profile. high input costs.
affordability and access across regions.
• Trading comparables should be used cautiously because: • Heavy logistics and warehousing costs due
• Government support through PLI schemes
➢ The industry includes a diverse set of companies. to bulky products and wide distribution.
➢ Few precedent transactions exist due to low deal activity. and 100% FDI in electronics
• High marketing spend on promotions, festive
• Revenue-based multiples should be avoided, as business models in the manufacturing.
discounts, and ATL/BTL campaigns.
sector vary widely in terms of margins. • Product innovation with energy-efficient,
• After-sales service and warranty support add
smart, and AI-enabled features gaining
Multiple Value to lifecycle costs.
traction.
EV/TTM EBITDA ~40x • Compliance costs due to energy ratings,
• High rural and tier-II/III market potential
EV/FY’24 EBITDA ~29x eco-regulations, and sustainability mandates.
boosting overall market expansion.
P/E Ratio ~68x
 Consumer Durables
Company Name Current Market P/E Market Cap Recent & Noteworthy Developments
Price(Rs.) (Rs. Cr.) • ₹1.76 lakh crore (US$20.3 billion) invested via India's PLI schemes across 14 sectors, including electronics and
Titan Company 3393 90.37 301513.18 white goods, by March 2025; over 1.2 million jobs created.
Dixon Technolog. 16744 118.07 101316.24 • As of June 24, 2025, India has disbursed ₹21,534 crore (~US$2.4 billion) in incentives under 12 PLI schemes.
Havells India 1507.8 67 94489.96 • The Mobile PLI scheme alone has generated 1.3 lakh direct jobs with ₹12,390 crore in investment and
Berger Paints 560.1 55.83 65225.79 production worth ₹8.44 lakh crore; India is now the world’s 2nd largest mobile manufacturer.
Voltas 1320.5 53.09 43719.92 • Reliance Retail acquires Kelvinator: entering the home appliances market aggressively to compete with giants
Blue Star 1738.7 61.12 35769.7 like LG and Samsung.
Amber Enterprise 7465.5 103.2 25322.11 • Dixon Technologies plans a ₹1,000 crore push into high-margin components (camera/display/fingerprint
PG Electroplast 789.35 77.7 22362.28 modules), preparing for the post-PLI environment and targeting operating margin improvement.
Crompton Gr. Con 331.2 38.37 21334.14 • Brands are focusing on premium models ahead of the festive season—with production volumes rising 10–20%
Whirlpool India 1379.7 49.34 17552.81 and growing consumer preference shifting toward feature-rich, smart appliances.

Key Performance Indicators (KPIs) Key Business Metrics

• Revenue Growth (%): Indicates topline expansion from product sales YoY or QoQ.
• Average Selling Price (ASP): Helps assess product mix (premium vs. mass
• Operating Margin (%):Measures profitability before interest and taxes; reflects pricing power and cost
segment).
efficiency.
• Units Sold / Volume Growth: Tracks actual product adoption and market demand.
• Return on Capital Employed (ROCE):Assesses how efficiently a company uses its capital to generate
• EMI Penetration Rate: Measures % of sales made via consumer financing—
profits.
important in India.
• Inventory Turnover Ratio: Reflects how efficiently inventory is managed; higher is better.
• Channel Mix (%): Share of sales from online, general trade, modern retail, and D2C.
• Market Share (%): Indicates competitive strength in specific product categories (e.g., ACs, TVs)
• SKU Rationalization (%): Tracks portfolio efficiency—cutting low-volume SKUs to
• After-Sales Service Satisfaction Score: Critical in white goods; impacts brand loyalty and repeat
improve margins.
purchase.
• Energy Star Rating Compliance (%): Important for product regulation and eco-
• Ad Spend as % of Revenue: Tracks brand-building efforts and marketing efficiency.
conscious buyers.
• Product Return/Defect Rate (%): Indicates quality control and customer satisfaction levels.