The Economic Times daily newspaper is available online now.

    Likely curbs on imports lift shares of refrigerator companies

    Synopsis

    Shares of Voltas and Whirlpool India declined 0.8% each on Friday, while Havells fell 1%. BPL shares gained 5%. NSE's benchmark Nifty50 fell 1.7%.

    Likely curbs on imports lift shares of refrigerator companiesTOI.in
    Any restriction on imports of refrigerators could also benefit local manufacturers Samsung Electronics and LG Electronics, said analysts.
    Mumbai: Shares of Voltas, Whirlpool, Havells and BPL performed better than the market on Friday, on the news that the government was considering restricting imports of refrigerators to promote local manufacturing.

    Any restriction on imports of refrigerators could also benefit local manufacturers Samsung Electronics and LG Electronics, the Indian units of Korean companies that are currently dominating the $5-billion market, said analysts.

    Shares of Voltas and Whirlpool India declined 0.8% each on Friday, while Havells fell 1%. BPL shares gained 5%. NSE's benchmark Nifty50 fell 1.7%.

    India has an installed capacity of 23 million tonnes per annum, while imports account for around 8% of the total sales. The local refrigerator market is estimated at ₹35,000 crore and is dominated by a few multinational brands.

    Whirlpool and Voltas are the prominent listed companies in the refrigerator segment. Three years ago, Tatas-owned air-conditioner maker Voltas tied up with Europe's Arcelik, and set up a ₹1,000-crore plant in Sanand near Ahmedabad to manufacture home appliances such as refrigerators and washing machines. In 2020, Havells entered the refrigerator segment with the Lloyd brand.

    "Local manufacturers like Lloyd (Havells) and VoltBeko (Voltas) stand to benefit from import restrictions," said Reliance Securities analyst Arafat Saiyed. "The GoI is focusing on make in India initiatives, and to promote this, import ban is necessary. India has a surplus capacity to manufacture refrigerators."

    The top 3 players in the refrigerator category - LG, Samsung and Whirlpool - have a nearly 75% market share. Videocon's exit has resulted in market share gains for the top three, with Whirlpool being the biggest beneficiary owing to attractive product pricing.




    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more


    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
    The Economic Times

    Stories you might be interested in