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    Sales of summer categories back on growth curve after rain disruption

    Synopsis

    As per industry estimates, sales of products like air-conditioners, refrigerators, ice creams and beverages shot up by up to 10% in these markets over 2022 which was one of the best summers in the last few years.

    Sales of summer categories back on growth curve after rain disruptioniStock
    Companies across summer products were running production at full capacity since February-March with predictions of El Nino and hottest February in over a century.
    After intermittent rain played spoilsport in March, sales of summer categories are back on the growth curve in West, East and South with temperatures in most markets recording above normal levels and heatwave in several towns, whereby companies have now decided to continue running full production till May

    As per industry estimates, sales of products like air-conditioners, refrigerators, ice creams and beverages shot up by up to 10% in these markets over 2022 which was one of the best summers in the last few years. However, sales in the North are yet to pick up but companies are optimistic it will start this weekend with the India Meteorological Department (IMD) predicting temperatures will rise in the next five days.

    “AC sales are up since last week of March after the intermittent rains. In fact, we are now even seeing second time buyers coming to the market. The category will grow by 20% this summer irrespective of rains which are now part and parcel of the game,” said Blue Star managing director B Thiagarajan.

    Tata-owned Voltas managing director Pradeep Bakshi said April and May sales should be good with business picking up in markets where temperatures are already high.

    IMD on Wednesday said there would be a gradual rise in maximum temperatures by 2-4 degrees over many parts of the country during the next five days. The weather department said maximum temperatures are in the range of 40-42 degrees over parts of Madhya Pradesh, Gujarat, Maharashtra, Odisha and Telangana, and above normal by 2-3 degrees over parts of Jammu & Kashmir, Northeast, East India and Coastal Andhra Pradesh. It said there is a heat wave condition over West Bengal and Odisha.

    Coca-Cola India and South West Asia vice president (marketing) Arnab Roy said the company is seeing a strong resurgence and it expects that resurgence to continue. “We are trying to expand into newer markets, especially in the rural areas, with factors like improvement in electrification, which is very helpful for us. With better electrification, we can improve cooler penetration,” he said.

    Companies across summer products were running production at full capacity since February-March with predictions of El Nino and hottest February in over a century. The industry has now decided to continue full production till May.

    Godrej Appliances business head Kamal Nandi said the company will run production at full capacity till May since sales have shot up in most markets and inquiries have started in the North. “We expect North sales to pick up from this weekend,” he said.

    Summer is one of the most crucial periods for several categories like beverages, AC, refrigerators and ice creams despite companies trying to de-seasonalise their portfolio. For several categories, the March-June period accounts for 60-70% of their annual sales. West, South and East accounts for 60-65% of all-India sales for most summer products with the balance coming from the North.

    Manish Bandlish, managing director at Mother Dairy Fruit & Vegetable, said the company has launched15 new products for the season.


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