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Manufacturers of consumer durables have been in focus amid the ongoing festival season sales. Sales pickup is necessary for earnings to get a boost in a year that saw demand take a hit during the second wave of the coronavirus pandemic. Even as large appliances such as air-conditioner, washing machines, refrigerators, among others, draw attention, analysts believe that smaller electrical appliance manufacturers are in a sweet spot.

Manufacturers such as Crompton Greaves Consumer Electricals Ltd, Havells India, Bajaj Electricals, and Orient Electric Ltd, offering a strong range should be key beneficiaries from sales in the segment. Companies such as Polycab Ltd that are diversifying their offerings and expanding into appliances segment should also benefit.

Havells has a large product range, including fans and other appliances, and has seen its ECD (electrical consumer durables) segment drive growth regularly. Crompton too offers a large range, and is well known for its electrical water pumps. Bajaj, Orient, Polycab offer diverse products, including fans.

In fact, fans look the most likely to drive growth. The continuous rise in sales of fans as a household necessity and the premiumisation theme playing out has driven growth. New design and technology have been making this category appear aspirational, said analysts.

“We believe that if the ongoing housing theme sustains, led by low home loan rates and positive consumer sentiment, categories like fans would benefit," said analysts at HDFC Securities Ltd. With the best RoCE amongst durables, fans have helped companies reinvest and diversify into other appliances, they add.

The need for more efficient gadgets, lowering energy consumption, also remains a growth driver. Analysts say that transformation in the fan industry with the implementation of energy efficiency norms will help consolidation in the industry.

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