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AIR TREATMENT PRODUCTS IN

INDIA
Euromonitor International
March 2014

AIR TREATMENT PRODUCTS IN INDIA

LIST OF CONTENTS AND TABLES


Headlines ..................................................................................................................................... 1
Trends .......................................................................................................................................... 1
Competitive Landscape ................................................................................................................ 2
Prospects ..................................................................................................................................... 3
Category Data .............................................................................................................................. 3
Table 1
Table 2
Table 3
Table 4
Table 5
Table 6
Table 7
Table 8
Table 9
Table 10

Sales of Air Treatment Products by Category: Volume 2008-2013 .............. 3


Sales of Air Treatment Products by Category: Value 2008-2013 ................. 3
Sales of Air Treatment Products by Category: % Volume Growth
2008-2013 .................................................................................................... 4
Sales of Air Treatment Products by Category: % Value Growth 20082013 ............................................................................................................. 4
NBO Company Shares of Air Treatment Products: % Volume 20092013 ............................................................................................................. 4
LBN Brand Shares of Air Treatment Products: % Volume 2010-2013 ......... 5
Forecast Sales of Air Treatment Products by Category: Volume 20132018 ............................................................................................................. 6
Forecast Sales of Air Treatment Products by Category: Value 20132018 ............................................................................................................. 6
Forecast Sales of Air Treatment Products by Category: % Volume
Growth 2013-2018 ....................................................................................... 7
Forecast Sales of Air Treatment Products by Category: % Value
Growth 2013-2018 ....................................................................................... 7

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AIR TREATMENT PRODUCTS IN INDIA

AIR TREATMENT PRODUCTS IN INDIA


HEADLINES
In 2013 air treatment products records retail volume growth of 7% to reach 38 million units
and current value growth of 14% to reach Rs140 billion
Economic slowdown continues to affect air treatment products in 2013
Split air conditioners the best performer with retail volume growth of 11%
Rising input costs result in a 7% increase in unit price
Crompton Greaves Ltd leads air treatment products in 2013 with a 23% volume share
Air treatment products anticipated a retail volume CAGR of 7% over 2013-2018

TRENDS
In 2013, air treatment products registered retail volume growth of 7%, marking a significant
slowdown from the 20% increase achieved in 2010 as a result of the economic slowdown
which started in 2011. On the positive side, growth in 2013 was slightly stronger than in 2011
and 2012. The other reason behind sub 10% growth in 2013 was that ceiling fans continued
to dominate air treatment products. Ceiling fans continued to enjoy strong penetration in 2013,
resulting in a high base, meaning during times of economic slowdown strong growth is not
possible. The length of the summer was short in 2012 and 2013 due to an early monsoon
season, which also affected demand for air treatment products. There continued to be
extremely negligible demand for room air conditioners, humidifiers and dehumidifiers in 2013,
which also limited the growth of the wider category.
Split air conditioners was the best performer in 2013, posting volume growth of 11%. This
healthy performance was the result of a transition from window air conditioners to split air
conditioners in most parts of India. Only in northern parts of the country were window air
conditioners still in demand. The other reason behind the strong growth of split air
conditioners was the narrowing price difference between split air conditioners and window air
conditioners. As split air conditioners offer superior technology, most consumers preferred
them over window air conditioners in the absence of any significant price difference.
The transition from window air conditioners to split air conditioners saw the former register a
volume decline of 8% in 2013. Throughout the review period demand for window air
conditioners was under pressure, with the category posting a volume CAGR decline of 4%. As
a result, players like Samsung stopped focusing on window air conditioners in 2011.
Average unit price in air treatment products rose by 7% in 2013. The price of ceiling fans rose
by 5% due to an increase in raw material costs. However, as ceiling fans was an extremely
competitive category, with cheap Chinese imports making it even more competitive, it was not
easy for manufacturers to raise prices. On the other hand, the price of air conditioners rose by
9% in 2013. This was due to growth in demand for air conditioners with a good energy rating.
Such air conditioners were priced at a much higher level than air conditioners with a low
energy rating.
The penetration of window air conditioners and split air conditioners continued to be very low
in India in 2013 compared to developed countries. This was primarily due to low per capita
incomes and low awareness as well as the high cost of electricity in India compared to many
other countries. The room air conditioners category was non-existent in India over the review

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AIR TREATMENT PRODUCTS IN INDIA

period. The penetration of split air conditioners was 3% in 2013 and that of window air
conditioners less than 1%.
Energy rating in India falls under the auspices of the Bureau of Energy Efficiency (BEE). Five
years ago, the BEE started to implement energy ratings for air conditioners in India. Ever
since then, it has continued to improve its standards. As it upgrades its standards,
manufacturers have to incur higher costs to manufacture air conditioners with the same star
rating. Such cost increases are passed on to the end consumer. In 2012, the BEE upgraded
the standards for the rating of split air conditioners and by the end of 2013 there were
indications that the BEE may upgrade standards again at the start of 2014. If that were to
happen, the price of air conditioners will increase by 5-10% in 2014.

COMPETITIVE LANDSCAPE
Crompton Greaves Ltd continued to lead air treatment products in 2013 with a 23% volume
share. The companys leadership is due to its strong position in ceiling fans, in which it held a
volume share of 28% in 2013, with ceiling fans accounting for around 80% of volume sales of
air treatment products.
Bajaj Electricals Ltd and Khaitan Industries Ltd both increased their share by 0.3 percentage
points in 2013. Bajaj Electricals Ltd achieved this increase thanks to extremely aggressive
marketing across both urban and rural areas. Khaitan also pushed its products aggressively.
There continued to be little differentiation in mass products like ceiling fans, desk fans and
cooling fans. Companies like Bajaj, Polar Industries and Crompton Greaves offer premium
branded products, while there are also many unbranded and low-quality products available in
the marketplace. Thus, price is a major differentiator for these products. In the case of air
conditioners, energy rating is one of the most important factors. Premium air conditioners with
a 4- or 5-star rating were priced in excess of Rs35,000 in 2013, while air conditioners with a 3star or lower rating were priced at less than Rs30,000.
Panasonic and Mitsubishi launched air conditioners in the Indian market in 2012 and 2013.
Panasonic was able to build on its product launches as its air conditioners were of good
quality and priced appropriately to face competition. Mitsubishi was not able to build its
presence in 2012 and 2013. One of the reasons behind the relative success of Panasonic
was that it was selling its air conditioners through its own stores, called Panasonic One Stop
Service. There were no emerging brands in fans as it was a stagnating category.
Voltas Ltd launched All Weather air conditioners in April 2013. The key feature of these is
that they provide cooling even at a high temperature of 52C. Moreover, they have an active
dehumidifier, which provides dehumidification even in cases of high humidity. As this product
was unique, it did well in 2013. It also helped Voltas Ltd retain its leading position in air
conditioners.
Of the top 10 companies in air treatment products in 2013, nine were domestic players.
Crompton Greaves Ltd, Bajaj Electricals Ltd, Usha International Ltd and Orient Paper &
Industries Ltd were among the leading domestic companies. The reason why Indian
companies continued to dominate was that ceiling fans accounted for a large share of air
treatment products. The only international company in the top 10 was LG Electronics India Pvt
Ltd. This was due to the companys strong position in air conditioners. However, in air
conditioners, of the top 10 companies, five were domestic and five were international in 2013.
Voltas Ltd, Blue Star Ltd and Videocon Industries Ltd were among the top domestic players
while LG Electronics India Pvt Ltd, Samsung India Electronics Ltd and Panasonic Home
Appliances India Co Ltd were among the top international companies.

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PROSPECTS
The growth in air treatment products is expected to improve over 2013-2015. Air treatment
products will continue to be boosted by the growing sales of split air conditioners in India.
More and more consumers will switch from window air conditioners to split air conditioners as
the latter are superior products. Moreover, awareness of split air conditioners will increase in
metropolitan areas as well as small towns.
Split air conditioners is expected to be the fastest growing category in air treatment products
over 2013-2018 with a retail volume CAGR of 9%. Manufacturers expect significant growth to
derive from small towns and villages over the forecast period. To tap into city demand,
manufacturers will continue to launch products with superior technology. For instance, a
number of manufacturers launched split air conditioners with digital inverter technology over
the review period, which helps to maintain temperature at a certain level, thereby reducing
energy consumption.
Demand for products like humidifiers and dehumidifiers was negligible over the review period.
However, it is expected that these categories will make some gains over the forecast period.
Products like dehumidifiers are expected to gain ground in coastal areas and especially the
city of Mumbai, where humidity remains high throughout the year.

CATEGORY DATA
Table 1

Sales of Air Treatment Products by Category: Volume 2008-2013

'000 units

Air Purifiers
Cooling
- Air Conditioners
- Air Coolers
- Ceiling Fans
- Cooling Fans
Dehumidifiers
Humidifiers
Other Air Treatment
Products
Air Treatment Products
Source:

2008

2009

2010

2011

2012

2013

22,195.6
1,680.0
1,284.8
17,316.0
1,914.9
-

25,950.4
2,233.0
1,541.7
20,086.6
2,089.1
-

31,143.8
2,371.0
2,035.0
24,405.2
2,332.6
-

33,036.4
2,472.0
2,104.6
26,015.9
2,443.9
-

35,325.8
2,597.0
2,200.0
27,956.7
2,572.2
-

37,956.8
2,763.0
2,313.9
30,184.8
2,695.0
-

22,195.6

25,950.4

31,143.8

33,036.4

35,325.8

37,956.8

Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 2

Sales of Air Treatment Products by Category: Value 2008-2013

Rs million

Air Purifiers
Cooling
- Air Conditioners
- Air Coolers
- Ceiling Fans
- Cooling Fans
Dehumidifiers

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2008

2009

2010

2011

2012

2013

66,415.9
34,242.9
4,651.1
25,975.7
1,546.2
-

80,570.7
43,869.3
5,354.1
29,683.9
1,663.5
-

91,439.8
44,919.7
7,174.5
37,401.7
1,943.9
-

103,561.4
50,673.1
8,217.4
42,485.7
2,185.1
-

122,476.7
62,301.2
9,319.8
48,399.0
2,456.6
-

140,167.7
72,228.2
10,562.3
54,639.3
2,737.9
-

AIR TREATMENT PRODUCTS IN INDIA

Humidifiers
Other Air Treatment
Products
Air Treatment Products
Source:

Passport

66,415.9

80,570.7

91,439.8

103,561.4

122,476.7

140,167.7

Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 3

Sales of Air Treatment Products by Category: % Volume Growth 2008-2013

% volume growth

Air Purifiers
Cooling
- Air Conditioners
- Air Coolers
- Ceiling Fans
- Cooling Fans
Dehumidifiers
Humidifiers
Other Air Treatment Products
Air Treatment Products
Source:

2012/13

2008-13 CAGR

2008/13 Total

7.4
6.4
5.2
8.0
4.8
7.4

11.3
10.5
12.5
11.8
7.1
11.3

71.0
64.5
80.1
74.3
40.7
71.0

Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 4

Sales of Air Treatment Products by Category: % Value Growth 2008-2013

% current value growth

Air Purifiers
Cooling
- Air Conditioners
- Air Coolers
- Ceiling Fans
- Cooling Fans
Dehumidifiers
Humidifiers
Other Air Treatment Products
Air Treatment Products
Source:

2012/13

2008-13 CAGR

2008/13 Total

14.4
15.9
13.3
12.9
11.5
14.4

16.1
16.1
17.8
16.0
12.1
16.1

111.0
110.9
127.1
110.3
77.1
111.0

Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 5

NBO Company Shares of Air Treatment Products: % Volume 2009-2013

% retail volume
Company
Crompton Greaves Ltd
Bajaj Electricals Ltd
Usha International Ltd
Orient Paper &
Industries Ltd
Khaitan Industries Ltd
Havells India Ltd

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2009

2010

2011

2012

2013

20.9
12.3
13.4
10.1

21.4
14.6
14.1
9.3

21.9
15.9
14.6
9.2

22.3
16.4
15.1
9.1

22.5
16.7
15.3
8.9

8.1
4.3

7.3
3.9

6.6
3.3

6.0
2.8

6.3
3.0

AIR TREATMENT PRODUCTS IN INDIA

Passport

Polar Industries Ltd


Symphony Comfort
Systems Ltd
Voltas Ltd
LG Electronics India
Pvt Ltd
Samsung India
Electronics Pvt Ltd
Videocon Industries Ltd
Blue Star Ltd
Panasonic Home
Appliances India Co Ltd
Daikin Airconditioning
India Pvt Ltd
Godrej & Boyce Mfg Co Ltd
Hitachi Home & Life
Solutions (India) Ltd
Carrier Aircon Ltd
MIRC Electronics Ltd
Electrolux AB
Whirlpool of India Ltd
Haier Appliances India
Pvt Ltd
Fedders Lloyd Corp Ltd
Electrolux Kelvinator Ltd
Standard Electric
Appliances Ltd
Others
Total
Source:

2.9
1.9

2.7
2.3

2.6
2.2

2.5
2.2

2.5
2.2

1.6
1.7

1.5
1.5

1.5
1.5

1.6
1.1

1.6
1.2

1.3

1.5

1.1

0.7

0.8

0.6
0.8
0.0

0.6
0.7
0.2

0.7
0.6
0.3

0.6
0.8
0.6

0.6
0.6
0.6

0.1

0.2

0.5

0.5

0.3
0.2

0.3
0.2

0.3
0.2

0.3
0.2

0.3
0.2

0.4
0.2
0.2
0.3
0.1

0.3
0.2
0.1
0.2
0.1

0.2
0.3
0.2
0.3
0.1

0.2
0.2
0.2
0.2
0.1

0.2
0.2
0.2
0.2
0.1

0.1
-

0.1
-

0.1
-

0.1
-

0.1
-

18.2
100.0

16.8
100.0

16.2
100.0

16.1
100.0

15.2
100.0

Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 6

LBN Brand Shares of Air Treatment Products: % Volume 2010-2013

% retail volume
Brand
Compton Greaves
Bajaj
Usha
Orient
Khaitan
Havells
Polar
Symphony
Voltas
LG
Samsung
Blue Star
Panasonic
Daikin
Videocon
Godrej

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Company

2010

2011

2012

2013

Crompton Greaves Ltd


Bajaj Electricals Ltd
Usha International Ltd
Orient Paper &
Industries Ltd
Khaitan Industries Ltd
Havells India Ltd
Polar Industries Ltd
Symphony Comfort
Systems Ltd
Voltas Ltd
LG Electronics India
Pvt Ltd
Samsung India
Electronics Pvt Ltd
Blue Star Ltd
Panasonic Home
Appliances India Co Ltd
Daikin Airconditioning
India Pvt Ltd
Videocon Industries Ltd
Godrej & Boyce Mfg Co Ltd

21.4
14.6
14.0
9.3

21.9
15.9
14.5
9.2

22.3
16.4
15.0
9.1

22.5
16.7
15.2
8.9

7.3
3.9
2.7
2.3

6.6
3.3
2.6
2.2

6.0
2.8
2.5
2.2

6.3
3.0
2.5
2.2

1.5
1.5

1.5
1.5

1.6
1.1

1.6
1.2

1.5

1.1

0.7

0.8

0.7
0.2

0.6
0.3

0.8
0.6

0.6
0.6

0.1

0.2

0.5

0.5

0.5
0.3

0.5
0.3

0.5
0.3

0.5
0.3

AIR TREATMENT PRODUCTS IN INDIA

Hitachi

Passport

Hitachi Home & Life


Solutions (India) Ltd
Carrier Aircon Ltd
MIRC Electronics Ltd
Electrolux AB
Whirlpool of India Ltd
Videocon Industries Ltd
Haier Appliances India
Pvt Ltd
Usha International Ltd
Fedders Lloyd Corp Ltd
Electrolux Kelvinator Ltd
Standard Electric
Appliances Ltd

Carrier
Onida
Electrolux
Whirlpool
Kenstar
Haier
Lexus
Lloyd
Electrolux
Standard
Others
Total
Source:

0.2

0.2

0.2

0.2

0.3
0.2
0.1
0.2
0.1
0.1

0.2
0.3
0.2
0.3
0.1
0.1

0.2
0.2
0.2
0.2
0.2
0.1

0.2
0.2
0.2
0.2
0.2
0.1

0.1
0.1
-

0.1
0.1
-

0.1
0.1
-

0.1
0.1
-

16.8
100.0

16.2
100.0

16.1
100.0

15.2
100.0

Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 7

Forecast Sales of Air Treatment Products by Category: Volume 2013-2018

'000 units

Air Purifiers
Cooling
- Air Conditioners
- Air Coolers
- Ceiling Fans
- Cooling Fans
Dehumidifiers
Humidifiers
Other Air Treatment
Products
Air Treatment Products
Source:

2013

2014

2015

2016

2017

2018

37,956.8
2,763.0
2,313.9
30,184.8
2,695.0
-

40,925.1
2,970.0
2,454.6
32,669.0
2,831.4
-

44,355.3
3,222.0
2,612.9
35,537.4
2,983.0
-

47,271.2
3,454.0
2,744.1
37,950.4
3,122.7
-

50,100.3
3,663.0
2,873.1
40,307.1
3,257.1
-

52,777.6
3,837.0
2,999.5
42,556.2
3,384.8
-

37,956.8

40,925.1

44,355.3

47,271.2

50,100.3

52,777.6

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 8

Forecast Sales of Air Treatment Products by Category: Value 2013-2018

Rs million

Air Purifiers
Cooling
- Air Conditioners
- Air Coolers
- Ceiling Fans
- Cooling Fans
Dehumidifiers
Humidifiers
Other Air Treatment
Products
Air Treatment Products
Source:

2013

2014

2015

2016

2017

2018

140,167.7
72,228.2
10,562.3
54,639.3
2,737.9
-

149,123.3
77,699.9
11,105.1
57,498.3
2,820.0
-

159,311.4
83,895.3
11,657.2
60,846.6
2,912.4
-

167,864.3
89,414.0
12,125.7
63,332.0
2,992.6
-

175,883.4
94,555.2
12,597.0
65,666.0
3,065.2
-

182,833.1
98,989.0
13,055.3
67,666.0
3,122.8
-

140,167.7

149,123.3

159,311.4

167,864.3

175,883.4

182,833.1

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Table 9

Passport

Forecast Sales of Air Treatment Products by Category: % Volume Growth


2013-2018

% volume growth

Air Purifiers
Cooling
- Air Conditioners
- Air Coolers
- Ceiling Fans
- Cooling Fans
Dehumidifiers
Humidifiers
Other Air Treatment Products
Air Treatment Products
Source:

Table 10

2017/18

2013-18 CAGR

2013/18 Total

5.3
4.8
4.4
5.6
3.9
5.3

6.8
6.8
5.3
7.1
4.7
6.8

39.0
38.9
29.6
41.0
25.6
39.0

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trade sources

Forecast Sales of Air Treatment Products by Category: % Value Growth


2013-2018

% constant value growth

Air Purifiers
Cooling
- Air Conditioners
- Air Coolers
- Ceiling Fans
- Cooling Fans
Dehumidifiers
Humidifiers
Other Air Treatment Products
Air Treatment Products
Source:

2013-18 CAGR

2013/18 TOTAL

5.5
6.5
4.3
4.4
2.7
5.5

30.4
37.1
23.6
23.8
14.1
30.4

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