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.

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