ANALYSIS and FINDINGS

COMPARISON WITH OTHER COMPANIES

REFRIGERATOR INDUSTRY AT A GLANCE

Refrigerators are being manufactured in India for the last four

decades.

Till early nineties only direct cool refrigerators were used in India.

Videocon introduced frost-free refrigerators in 1991.

In 2005-06 the market was as follows:

1
0.8
0.6 Direct Cooling
0.4 Frost Free
0.2 Direct
0 Cooling
Price % Mkt.
Share

Segment Price % Market

Share
Direct Cooling Low 85%
Frost Free 35-40% more than DC 15%
Based on the Capacity and price the market was divided as follows in
2005-06

Segment Price Capacity % Share

Top >20000 >300 Ltrs 3%
High 15-20000 >230 Ltrs 7%
Medium Upto 15000 165-230 Ltrs 85%

Low <8-9000 Upto 90 Ltrs 5%

In 2005-06 the penetration levels were approx. 9%

 In 2005-06 the demand distribution as per the Income class
was as follows:

Income Class Penetration %

Low 0.7%

Lower Middle 5.3%

Middle 19.8%

Upper Middle 43.5%

High 59.9%

Total 8.61%
 In 2005-06 the demand distribution as per markets was as follows:

Urban Rural Total

Penetration % 25.23 2.04 8.61

Share of Purchase% 75.7 24.3 100

Past trends

Demand for refrigerators grew from 11,000 units in 1968-69 to about

2.25 million units in 1996-97

Demand for refrigerators has grown at a CAGR of around 22% from

1.04 mn units in 1992-93 to 2.18 mn units in 1997-98.

The total stock went up from 3.3 million units in 1968-69 to 17.2
million units in 1996-97, but still

covering only about half of the total households in middle and high
income groups
Current Scenario
The current demand for refrigerators is approx. 2.9 mn units per
annum.

The 165-200 Ltrs of refrigerators comprise of 80% of the total

demand.

Frost Free refrigerators contribute 15% of the total demand with 5%

coming from the premium range.

The market structure is as follows:

 Segment Share(%)

North 25%

East 14%

West 32%

South 29%

Rural 25%

Urban 75%

Household 85%

Institutional 15%

The replacement demand is about 20% of the total demand and

shows preference for larger and technically advanced models.

Demand for the frost-free refrigerator is increasing rapidly.

Feature based differentiation and various price points for same

capacity emerge in the top and high categories. Some of the
features, individually or together are used for differentiation.

No and type of doors.

Crushed ice and water dispenser

Quick chilling zones

Multiple temperature zones

Adjustable racks and shelves

Multiple use compartments

Refrigerant CFC free Vs CFC

Energy efficient compressor

Freezer space vis a vis Refrigeration space

Future Trends

Replacement market is expected to increase to 25-30% on account

of faster replacement (further induced by exchange scheme).

Refrigerator market is expected to grow at a CAGR of 14% in the

medium term aided by the rising per capita income and growing
consumerism.

The demand for refrigerators is expected to be about 3.6 million

units in 2005-06 with a penetration rate of about 13%

As specified by the Montreal Protocol the use of refrigerants such as

CFC-11 and CFC-12 need to be phased out by 2010.

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Companies In The Refrigerator Market

The leading companies in the market with there market share in

first half.

Total market in Direct Cooling segment

BRAND SALES(Units %Shar

) e
VIDEOCON 199000 12.9

SAMSUNG 396000 25.7

L.G 349000 22.7

GODREJ 178000 11.5

BPL 85000 5.5

WHIRLPOOL 10000 0.7

ELECTROLU 8000 0.5

X

OTHERS 313000 20.3

TOTAL 1535000 100

 Total Market Share in Frost Free Segment

BRAND SALES(UNITS) %SHARE

VIDEOCON 21000 12

SAMSUNG 25000 14.4

L.G 8000 4.6

GODREJ 25000 13.8

BPL 83000 17.4

WHIRLPOOL 7000 4.0

ELECTROLUX 8000 4.6

OTHER 180000 18.2

TOTAL 1134550 100