While green activists are crying hoarse over global warming and soaring temperatures, making this summer one of the worst in the recent times, FMCG companies selling cooling systems such as air-conditioners and refrigerators are laughing all the way to the bank by witnessing amazing growth in sales.

Even during normal years, sale of these products reach a feverish pitch during the summer months. Average y-on-y growth for this category hovers in the range of 20-25 percent. However, the scorching heat of this summer has pushed the sales beyond expectations. While the y-on-y growth in the A/C category is above 50 percent, refrigerator sales grew at an amazing rate of 40 percent.

The growth has been equally good across the entire range of top FMCG companies such as Godrej & Boyce, LG, Samsung, and Videocon. In A/C category, while Godrej witnessed a growth of 50%, Videocon registered a growth of 60%. Samsung is expecting to sell a million units this year to corner 30% market share. Refrigerator sales increased by 30% for Godrej and 40% for Videocon.

All top FMCG companies in the segment had prepared for the deluge in demand. Even with all the preparation, with the demand much exceeding previous years, production capacity is being stretched to the utmost. Most companies like Godrej and LG have doubled their production for the products. Samsung had set up new manufacturing plants for split A/Cs in Sriperumbudur and Noida to meet the summer demand.

Indian consumers are favoring split A/Cs to window units, which is proved by above 70% sales growth for the product. The growth in window A/C sales is negligible compared to this.

A new trend that is seen emerging in recent years is the growth in sales across the country. Indian economy’s good performance leading to more disposable income for people from all walks of life is believed to be the reason behind this.

The US Treasury Secretary Timothy Geithner embarked on his maiden India visit with promises of growth opportunities for the two economies. However, he added that India’s growth would hinge on infrastructural development. The treasury secretary is in India to launch bilateral economic discussions and cooperation.

Mr. Geithner said, “India is embarked on a very substantial economy, which will depend upon in part on its ability to substantially increase investment in public infrastructure. And future growth in India will depend on part on its success in doing that.”

He added that India has proven its strength in areas like higher education, entrepreneurship and penetration in global market. Together with the government’s reforms, India’s economic growth is bound to scale new heights. Mr. Geithner also pointed out that the strengthening of bilateral relationship would be beneficial to both economies.

“This economic relationship offers very promising growth opportunities for American firms, just as it does for Indian firms. And we are going to work more closely over time to make sure that we are taking advantages of those opportunities not just in infrastructure but broadly across both the economies.” Mr. Geithner said.

At a press conference during launch of India-U.S. Financial and Economic Partnership in the capital, Mr. Geithner said that the US economy was ‘looking substantially stronger’. He cited the US Labor Department report stating that the creation of jobs was at a 3-year high during March.

Mr. Geithner said that the world needs to emerge from strong growth rate and switch over to a balanced and sustainable growth. For this, he said, changes in the US and world countries are necessary.

Mr. Geithner will meet and hold discussions with Indian entrepreneurs and US financial firms in Mumbai today.

In a bid to promote rural sales in the country, ASSOCHAM, the Associated Chambers of Commerce and Industry of India, has proposed doing away with the service tax for marketing and sales promotion activities in rural areas. This may be achieved by resetting rural sales as service tax exemption benchmark.

With various government schemes such as NREGA, Bharat Nirman and Indira Awas Yojana targeting the rural population as well as the lower tier cities of the country, the disposable income and thereby the purchasing power of this section is on the rise. By exempting sales and marketing activities and expenses from service tax, the government can achieve two goals in one stroke – that of increasing rural sales and promoting inclusive growth.

ASSOCHAM President, Dr. Swati Piramal, submitted a memorandum to the Finance Minister detailing the proposal. The memorandum argues that the demand for Indian industry products is on the rise in rural areas and this can be pushed further up by introducing service tax exemption.

The memorandum further says that the benefits of the exemption will not be restricted to rural buyers alone. It would eventually benefit manufactures of products too. Dr. Piramal said that the industry keeps detailed figures of its rural sales and marketing activities, which may be used by the government for granting service tax exemption.

Dr. Piramal pointed out that this move would be advantageous in preventing sales of fake products in rural areas, even as it increases the sale of quality branded products.

ASSOCHAM is also rooting for service tax exemption on transportation of agricultural products such as oil seeds, edible oil and de-oil cakes, as the country is facing a shortfall in their production.

Actor Akshay Kumar, who we can see in latest advertisement Tax Department advertisements these days, urging people to pay their taxes, has become the highest tax payer from Bollywood. He was the highest payer last year also.
He has paid Rs 9 crore as an advance tax in March, 2010. This would take his total advance tax payment for the year 2009-2010 to Rs 18 crore. Last year, he paid Rs 31 crore after a stint of huge hits.

He said, “It feels good and privileged to be the highest tax payer. It is also a greater sense of responsibility.” He is right now shooting for a movie named Tees Maar Khan which is being directed by Farah Khan. Akshay Kumar is followed by Aamir Khan who paid Rs 12 crore as advance tax and is followed by Superstar Shahrukh Khan who has had only 1 release in the year 2009-2010, My Name is Khan in January 2010. Salman Khan is the fourth highest tax payer with Rs.5.5 crore in the year 2009-2010.
So far, Kumar has had a difficult year as all of his five releases have failed to perform well on the box-office. The much hyped Chandni Chowk to China, Tasveer 8 x 19, Kambakht Ishq, De Dana Dan and Blue all struggled to impress the audiences.

Akshay had signed all these films amidst the success of his previous year’s films. Hence, they fetched him a huge sum as fee. The actor also endorses Thumbs Up, Dollar Vest, LG and Levis which has also contributed to his income.

He said, “Along with fulfilling my tax duties, I also feel the time has come for me to give back to society and the country at large. Which is why I am also using my brand status to do an ad for service tax. If I can get my message across to even half the people across, I feel it would be worth it.”
Abhishek Bachchan paid Rs 4.15 crore in advance tax, while Aishwarya Rai’s advance tax was Rs 2 crore. Amitabh Bachchan has filed Rs 2.9 crore as advanced tax in March, 2010 which has taken his total tax payment to Rs 4 crore.

Saif Ali Khan paid Rs 1.52 crore as advance tax which is quite low from his last year’s amount Rs, 5 crore. His girlfriend and actress Kareena Kapoor has paid Rs. 1.45 crore which has taken her total tax for 2009-2010 to Rs. 3.65 crore.