Household Appliances Industry

Comprehensive pack

1
• CTVs :3

• Refrigerators : 24

• Washing Machines : 41

• Room Air Conditioners : 60

• Future Growth : 79

2
CTV-Historical Demand

3
Growth in CTV volumes pegged to be lower in 2015-16 as
compared to the previous year
• In 2015-16 sales volumes of CTV segment are estimated to have
grown by 3-4% to reach 13.1 million units.
• The growth is estimated to be slower than 2014-15 on account of
weak rural consumer sentiment due to second deficient monsoon.
• CTV sales volumes grew at a robust pace of 5.7% y-o-y in 2014-15 on
account of pent up demand of previous years (growth was flat
during the last 5 years), election spending and many sports events
such as 2014 FIFA World Cup.
• In 2015-16, sales volumes of CRT TV (accounting for 30% of overall
sales in 2014-15) are estimated to have declined by 38-39%, that of
panel TVs are estimated to have risen by 21-22%.
4
Growth in CTV volumes pegged to be lower in 2015-16 as
compared to the previous year
• Demand for CRT TVs came largely from price-sensitive consumers
in semi-urban and rural areas, while demand for high-priced panel
TVs came from metros and mini metros.
• The CRT TV segment has been steadily losing ground over the past
few years, mainly due to the narrowing price differential between
CRT TVs and panel TVs and the comparative advantages offered
by the latter segment.
• CRT TV sales have been significantly impacted by weak buyer
sentiment as well as constraints on the supply side.
• From the supply side, players are moving out of the segment on
account of low profit margins as well as unavailability of CRT
tubes. 5
 CTV - Trend in overall sales volumes

The CRT TV segment, witnessed a decline in sales volumes by 25 per cent CAGR (2010-11 to
2015-16). 6
 Low growth in the volumes of panel TVs
• The panel TV segment witnessed a growth in sales volumes of 21% in
2015-16, as compared to 37% in 2014-15.
• The growth in panel TVs is pegged to be lower than 2014-15 on account of
weaker demand from the rural areas.
• In case of the panel TV industry, the panels are mostly imported and TVs
are assembled in India.
• In 2015-16, panel prices dropped at a faster pace globally due to excessive
increase in production and capacity expansion led by Chinese suppliers.
• On the other hand, TV shipments declined globally led by decline in
demand from the emerging markets and Latin American countries.
• Consequently, sharper drop in domestic panel TV prices by 6-10% y-o-y
during the year as against 3-5% decline in 2014-15, restricted the
7
slowdown in their demand growth.
Sales of panel TV sets show steady growth trends

8
Sales of panel TV sets show steady growth trends
• In value terms, the CTV industry growth rate decline to 6% y-o-y in
2015-16.
• The market size of the CTV industry reached Rs. 228 billion in 2015-
16, from Rs. 216 billion in 2014-15.
• Penetration level for CTV is the highest, at 51 per cent, in
comparison to other appliances.
• Both replacement demand (due to decreasing replacement cycle),
as well primary or fresh demand, (sales from first-time buyers and
multiple purchases) drove CTV sales in the past five years.

9
CTV - Trend in overall sales

10
 Panel TVs increasing rapidly
• The panel TV segment has been expanding at a remarkable pace.
• Over the last 5 years (2010-11 to 2015-16) demand for CRT TVs declined
by 25% on a compounded basis vis-a -vis 32% CAGR recorded for panel
TVs.
• Within the panel TV segment large players such as LG, Samsung and
Sony stopped the manufacture of LCD TVs and dedicated all
manufacturing units for production of LED TVs.
• Due to such economies of scale, LED TV prices fell.
• Also, intense competition with smaller players entering this segment, is
forcing players to lower prices.
• With prices of LED TVs nearly the same as that of LCD TVs, consumers
have now completely shifted towards the former due to advantages
such as better picture clarity and lower power consumption. 11
CTV Industry Trends

12
 Panel TV segment records healthy growth
• The share of cathode ray tube (CRT) television (TV) in total sales declined
sharply to 18% in 2015-16 from around 71% in 2011-12 due to shift in
consumer preference towards panel TVs and the major players like (LG,
Salora and Onida) in the CRT TV segment exiting the market owing to low
profit margin and unavailability of CRT tubes.
• The price difference between CRT TVs and panel TVs is around Rs. 1900-
2200 which had prevented customers to completely shift to panel TV's.
• The share of the panel TV segment, which primarily includes Liquid-
crystal-display (LCD), light emitting diode (LED) and plasma TVs, rose to
82% in total sales in 2015-16, mainly due to declining prices along with
high perceived utility (lower space requirement and better image quality)
and narrowing of the price differential between CRT and panel TV.
• In 2015-16, LCD TVs were completely replaced by LED TVs. 13
Segmental mix

14
LED TVs preferred over LCD TVs
• In the panel TV segment, there has been a almost complete shift
towards LED TVs from LCDs.
• While the LED segment accounted for only 20 per cent of overall
panel TV sales in 2011-12, in 2015-16, LED TVs completely captured
the panel TV segment as total sales comprises of LED TVs.
• With prices of LED TVs nearly the same as that of LCD TVs,
consumers have opted for the former due to advantages such as
better picture clarity and lower power consumption.
• LED have overcome LCD demand
• LED TVs have overcome LCD demand due to the following
advantages over the LCD TVs.
• Decline in panel prices in the last three-four years, which triggered
a drop in panel TV prices (by about 4-5% annually). 15
LED TVs preferred over LCD TVs
• Large players such as LG, Samsung and Sony stopping the
manufacture of LCD TVs and dedicating all manufacturing units
for production of LED TVs.
• Due to such economies of scale, LED TV prices have fallen further.
• Also, intense competition with smaller players entering this
segment, is forcing players to lower prices.
• With prices of LED TVs nearly the same as that of LCD TVs,
consumers have now completely shifted towards the former due to
advantages such as better picture clarity and lower power
consumption.

16
CTV Industry Structure

17
 CRT TV segment witnessing exit of players while panel TV
segment witnessing entry of new players
• Shift in consumer preference in urban areas towards panel TVs (driven
by declining panel TV prices ) has impacted CRT TV demand.
• In 2015-16, while growth in CRT segment (accounted for 30% of overall
sales in 2014-15) declined by 38-39%, that of panel TVs rose by 21-22%.
• Weak demand as well as constraints on the supply side led many large
players to reduce their presence in CRT TV segment.
• From the supply side, players are moving out of the segment on
account of low profit margins as well as unavailability of CRT tubes.
• LG, Salora and Onida exited the CRT TV segment during 2013 and
2014.
• As a result, Videocon's market share increased from 58-61% to 70-75%.
• The CRT TV industry thus has become a highly consolidated, with
18
Videocon controlling around 70-75 % of the market.
Market share - CRT TV

Note-: Others includes Akai, Philips etc

19
Market share - CRT TV
• The demand for panel TVs has been increasing in the recent past, as
the price differentials between panel TVs and CRT TVs has been
narrowing down.
• Also rising incomes, the continuing shift in consumer preferences
and increasing affordability are driving up demand for branded
panel TVs, which is evident from the increase in share of mid and
premium segment players.
• However, the market share for others (lower and mid segment
players) has declined over the same period.
• The panel TV market is dominated by Samsung, LG and Sony, with
a combined market share of 70-75%.
• As an expansion of the screen business, Indian handset makers like
20
Micromax and Intex have entered the panel TV market.
Market share - CRT TV
• The industry has witnessed intense competition with small players
such as Micromax, Intex, and Videotex entering the TV industry.
• These players have launched TVs with lesser features in smaller size
segments (19“ to 21") to offer products at lower price points. Celkon
Impex Pvt Ltd is also expected to enter this market.
• Going forward, these players are expected to eat more into the
market shares of the established TV makers.
• Within panel TVs, the industry has completely shifted towards LED
TVs from LCD and plasma TVs.
• Large players such as LG, Samsung and Sony have stopped the
manufacture of LCD TVs and dedicated all manufacturing units for
production of LED TVs.
• Due to such economies of scale, LED TV prices have fallen. 21
Market share - CRT TV
• Also, intense competition with smaller players entering this
segment, is forcing players to lower prices.
• With prices of LED TVs nearly the same as that of LCD TVs,
consumers have now completely shifted towards the former due to
advantages such as better picture clarity and lower power
consumption.
• On the other hand, demand for plasma TVs has also vanished due
to lower interest from consumers, retailers and players; lower
performance; and diminishing price advantage in 50" and larger
sizes.

22
Market share - Panel TV ( LCD, LED, Plasma )

Note-: Others includes Philips etc 23

Refrigerator-Historical Demand

24
Refrigerator demand remained moderate during 2015-16
• The refrigerator industry is estimated to have recorded a CAGR of
6.1% from 2010-11 to reach about 10.7 million units in 2015-16.
• Both direct cool (DC) segment and the frost free (FF) segments
grew by 5-7%, during this period.
• Rising household incomes, growth in number of nuclear families
and relatively lower penetration levels of about 31% (as compared
to 51% for color televisions) drove demand for refrigerators during
the last five years.

25
Refrigerators sales volumes over last five years
• After rising by around 12.7% during 2010-11, growth slowed in
subsequent years and rose by 3-7% from 2011-12 to 2013-14.
• However, in 2014-15, demand grew by about 9.1% due to improved
buyer sentiment as well as pent up demand of the previous years.
• In 2015-16, the DC segment witnessed marginal increase in its price
by 0-1% while FF segment witnesses a decline of 2-3%.
• Despite overall decline in the prices, refrigerator sales have been
impacted in 2015-16 on account of untimely rains during the
summer in various parts of the country which lowered
temperatures.
• Consequently, demand is estimated to have grown at a relatively
slower pace of 6-7% y-o-y in 2015-16 than in 2014-15.
26
Refrigerators sales in value terms

27
Refrigerators sales in value terms
• In 2015-16, the refrigerator industry constituted 31% of the
household appliance industry, which was valued at Rs 580 billion.
• During the year, refrigerator sales increased by around 6-7% y-o-y
to reach 10.7 million units.
• In value terms, the industry grew by 5% y-o-y to Rs 177 billion
largely driven by growth in volumes (overall realizations declined
by 1%).

28
Segment-wise average realizations for the refrigerator industry

29
Refrigerator-Industry Trends

30
Direct cool segment to sustain market share

• In 2015-16, demand grew at slower pace by about 5-10% despite of

decrease in refrigerator prices.
• The sales decreased as compared to the sales in 2014-15 due to
untimely rains during the summer in various parts of the country
which lowered temperature.
• In 2015-16 the realization declined by 0-1% y-o-y owing to decline
in input cost.
• However prices for DC segment remained stable as decline in input
cost was offseted by ratings revision.
• The share of DC segment in total sales of refrigerator increased to
73% in 2015-16 which was 72% in the previous year while the share
of FF segment decreased to 27% from 28% in 2014-15.
31
Direct cool segment to sustain market share

• To function efficiently, FF refrigerators need uninterrupted power,

which is available in most large urban areas.
• This, however, restricts its demand in areas lacking continuous
power supply.
• Therefore, while FF refrigerators are largely preferred in the urban
areas, the DC segment caters to rural and semi-urban areas which
have frequent power outages.
• Going forward, analysts expects the trend to continue.

32
Segmental mix

In 2015-16, the FF segment grew at a slower pace by 2% y-o-y while the DC segment
also showed a growth of 7% y-o-y. 33
Segment-wise growth rates

34
Refrigerator Industry Structure

35
Product innovation and improved distribution channel - key
success factors for players
• The refrigerator industry has traditionally been dominated by five
major players, with a collective market share of around 95-97%.
• Over the past 3-4 years, most players have been successful in
maintaining their market share.
• LG has continued to remain the market leader during the last five
years and accounted for 30% of the refrigerator segment in 2015-16.

36
 Overall market share of leading players in the refrigerator
segment

Note-: (*) - Videocon brands include Videocon, Akai, Sansui, and Kenstar 37
Change in Market Share

Note : (*) - Videocon brands include Videocon, Akai, Sansui, and Kenstar

38
Change in Market Share
• Players are improving their reach to tier-II and tier-III cities and
also increasing their product range by launching a number of stock-
keeping units (SKU), to give consumers a wide range of options.
• Whirlpool, Videocon, Electrolux and Kelvinator are present in
lower price ranges while in the higher price range, there are brands
like LG, Samsung, Bosch, Sharp, Hitachi and Whirlpool.
• Though LG leads the refrigerator market, the share of Samsung in
the FF segment is the highest.
• Samsung and LG have maintained their market leadership over the
years.
• The Korean giants have continued to invest aggressively in product
development, product launches, along with new technologies and
scaling up their distribution channel. 39
Change in Market Share

• In the recent past, there has been growing consumer preference

towards larger capacity refrigerators.
• Many players like LG and Samsung exited the 180L and less direct
cool refrigerator segment, which affected the market share of some
players.

40
WMs-Historical Demand

41
Growth in demand estimated to be steady in 2015-16
• The washing machine industry is estimated to have grown by
about 5-6% CAGR between 2010-11 and 2015-16 to 5.0 million units.
• Rise in household incomes and number of nuclear families and low
penetration levels have been demand drivers so far.
• After recording a y-o-y growth of 11.4% in 2010-11, demand slowed
to about 5% CAGR in the next three years as a result of weak
consumer sentiment, arising from an increase in washing machine
prices, high inflation, and interest rates.
• However, improved consumer sentiment as well as pent-up
demand resulted in a healthy 7.8% y-o-y growth in 2014-15.
• Unlike room air conditioners and refrigerators, energy efficiency
norms have a very negligible impact on washing machines.
• WM prices decreased by 0-2% during 2015-16. 42
Growth in demand estimated to be steady in 2015-16
• Consequently, in 2015-16, demand is estimated to have grown by
about 7-8% y-o-y to 5 million units.

43
Sales of washing machines (in volume terms)

44
Sales of washing machines (in volume terms)

• Demand for both the segments (semi- and fully-automatic WMs)

comes largely from urban and semi-urban areas.
• While the semi-automatic segment caters to price-sensitive
consumers in semi-urban areas, demand for FA machines comes
primarily from the metros and mini metros.
• Although growth in the FA segment has outpaced growth in the
SA segment over the last four years, higher prices and the
requirement of running water have curtailed growth in demand
for FA machines in semi-urban areas.

45
Sales of washing machines (in value terms)

46
Sales of washing machines (in value terms)
• Valued at Rs.70 billion in 2015-16, the washing machine segment
accounted for around 12% of the total value of the household
appliances industry.
• During the year, the overall segment grew by around 6-7% y-o-y in
value terms, with the semi-automatic and fully automatic segments
recording a growth of 4-5% and 8-9%, respectively.
• Sales in value terms surpassed volume growth due to a segmental
shift towards the higher value fully automatic segment.
• The realizations are estimated to have declined marginally by about
0.1% in 2015-16 due to decline in prices of the washing machines by
0-2%.
• Though the raw material prices declined in 2015-16 it was partially
offset by rupee depreciation thus input cost declined marginally. 47
Washing machines - Average realizations

48
WMs-Industry Trends

49
Shift in demand towards fully automatic washing machines

• In 2015-16 the demand for washing machine grew by 7% y-o-y to 5

million units.
• During the year, the share of fully automatic segment grew to 39%
from 38% in the previous year in volume terms, while the share of
semi automatic segment is 61% which is declining year by year.
• Changing lifestyles in urban areas has resulted in a gradual shift in
demand to fully automatic washing machines from semi-automatic
washing machines.
• While semi-automatic washing machines need manual intervention
2-3 times during the wash process, fully-automatic washing
machines require no such intervention; this suits the needs of the
working class in large urban areas.
50
Segmental mix

51
Segmental mix
• The growth in semi automatic segment remained stable at 7%
during the year because of steady demand from semi-urban areas,
where buyers are more price-sensitive as well as from areas facing
water shortages.
• However the demand for fully automatic machines declined to 8%
in 2015-16 as compared to 9% in the previous year as higher prices
and the requirement of continuous running water impacted the
demand from semi-urban areas.

52
Segment-wise growth

53
WMs-Industry Structure

54
Players focusing on innovation in energy, water conservation

• The washing machine industry is highly concentrated, with

around four players accounting for 75-80% of the market.
• Two Korean brands - LG and Samsung - constituted 48% of the
market share in 2015-16.
• Product innovation, right pricing and a widespread distribution
network have enabled LG to remain the leader over the past five
years.
• As in other segments, LG and Samsung have been at the forefront
in terms of market shares.

55
Overall Market Share - WMs

Note: (*) - Videocon brands include Videocon and Kenstar

56
WMs: Change in Market Share

Note: (*) - Videocon brands include Videocon and Kenstar

57
 WMs: Change in Market Share
• With a slowdown in the economy, demand for washing machines
remained weak during the year.
• As a result, players in the premium and mid-premium segments like
IFB, Godrej and Whirlpool saw a decline in sales, which eroded their
market share.
• However other players like LG and Samsung, witnessed an increase in
their market share.
• Introduction of steam technologies by LG for better cleaning and
sensor technologies by Samsung to conserve water helped them to
increase their sales.
• Players such as Gem, T-Series, Daenyx and Intex have launched
washing machines in semiautomatic 6.1-8 kg segments at prices Rs
3000-4000 lower than those of the established brands. 58
WMs: Change in Market Share

• This has made the washing machine industry more competitive.

59
RACs-Historical Demand

60
Air conditioner segment witnesses growth in share of split
ACs vis-a-vis window ACs
• The AC industry witnessed an inertia during 2010-11 to 2015-16,
wherein sales are estimated to have clocked a tepid 4.5% CAGR to
about 3.9 million units.
• During this period, the split AC (SAC) segment grew at around 9-
10%, while the windows AC (WAC) segment witnessed a decline of
around 6% in sales volumes.
• Consequently, share of the SAC segment increased to 73% in 2015-
16 from 57% in 2010-11.
• In India, room air conditioners (RACs) have managed to penetrate
only about 10% of households up to 2015-16, which is much lower
than the 25-30% figure at the global level.

61
Air conditioner segment witnesses growth in share of split
ACs vis-a-vis window ACs
• Also, if we evaluate domestic penetration of other household
appliance segments, RACs are ranked below televisions,
refrigerators and washing machines in order of priority.
• The low priority for RACs on the purchase list is evident,
specifically in rural areas, as alternatives like air coolers are
available at lower price points and consume lesser power.

62
Sales volume of the RAC segment

63
Sales volume of the RAC segment
• Affecting RAC sales in 2015-16 was untimely rains during the
peak demand period - 40-45% RACs are sold during April to June
every year.
• Although manufacturers have reduced product prices, helped by
softening raw material costs, to prop up demand, growth is
estimated to print a slower 10% onyear as compared to 12.8% in
2014-15.
• Prices also declined as Bureau of Energy Efficiency (BEE) star
rating levels were unchanged - change in rating scale impacts
prices as more raw materials are utilised to improve or sustain the
star rating.

64
RAC sales in value terms

65
RAC sales in value terms
• Valued at Rs 105 billion in 2015-16, the RAC industry constituted
over 18% of the total value of the household appliances sector.
• In value terms, the industry recorded a 3-4% y-o-y growth in 2015-
16.
• Sales in the SAC segment grew by 5-6%, while that in the WAC
segment declined by 3-4%.
• Realisation of RAC manufacturers is estimated to print a negative
5-6 per cent on-year in 2015-16 as compared to 7.7 percent in 2014-
15.

66
Average realizations

67
RACs-Industry Structure

68
Entry of new players, increase in capacity and expansion in
distribution intensifies competition
• In the residential air conditioner (RAC) segment, the top three
players accounted for around 50-55% of the market in 2015-16.
• Players like LG, Voltas and Samsung are large players, who have
been struggling to retain their market share over the years, due to
entry of many new players.
• Players are focusing on widening the distribution channel, mainly
in tier- II and III cities, where penetration is very low.
• This has made air conditioners the most competitive segment in the
household appliance industry.
• Videocon, Bluestar, Daikin, Hitachi, Onida are some of the other
players in this segment.

69
Entry of new players, increase in capacity and expansion in
distribution intensifies competition
• Some RAC manufacturers like Diakin, Videocon, Blue Star have
started building and expanding capacities to improve localisation
as well as to cater to exports to the neighbouring countries.
• Capacity building or expansion will improve local sourcing, which
is expected to reduce costs and enable players to pursue a low price
point marketing strategy.

70
Overall Market Share - ACs

71
ACs: Change in market Share

72
ACs: Change in market Share
• LG was the biggest gainer in 2015-16, witnessing a 200 bps rise in
market share, which helped it overtake Samsung as well.
• Factors such as focusing on widening the distribution channel and
offering innovative products have helped LG to achieve this.
• Large players face intense competition from smaller players,
mainly at entry level segments (<1.5 tonnes).
• Given this, LG and Voltas have launched ACs in 0.75-tonne
segment, at a price which is 10-12% lower than ACs in 1-tonne
segment.
• To increase sales, players offer products within a wider price range,
thus providing consumers more variety.

73
RACs-Industry Trends

74
Segmental shift towards split ACs
• The split air-condition (SAC) segment expanded by around 9-10%
CAGR (in volume terms) between 2010-11 and 2015-16, whereas
the window air-condition (WAC) segment declined by about 4-5%
CAGR.
• During the year share of split ACs in total sales increased to 73% as
compared to 71% in the previous year.
• The customers are shifting from window ACs to split ACs despite
being priced 1.3 times higher than window ACs given its lower
noise levels and running cost, easier portability, reduced operating
cost as well as shrinking price differentials.

75
Segmental mix by volume

76
Segmental mix by volume

• While demand for WAC is from price sensitive consumers,

increased focus by air-condition (AC) manufacturers on SACs
(higher proportion of new products launched in the SAC segment)
has resulted in relatively lower demand for WACs.
• In 2015-16 the demand for split ACs decreased by 12% as compared
to 20% in the previous year due to untimely rains during the peak
demand period, while the demand for window ACs grew by 4% as
compared to -2% in the previous year as the growth in this segment
was supported by demand from institutions like hotels and
hospitals.

77
Segment-wise trend

78
Future Growth

79
Household appliances

P: Projected

80
Higher economic growth, low penetration and rising affordability
to drive long-term demand
• Industry expects a robust rise in demand in the long term in tandem
with increasing affordability with stable prices, higher economic
growth, assumption of stable inflation, lower interest rates, greater
government spending for development of rural infrastructure, etc.
• In volume terms, growth will be driven by better affordability,
shorter replacement cycles, multiple ownership (in case of CTVs)
and low penetration levels (in case of other appliances).
• Panel TVs are replacing cathode ray tube TVs.
• Although CTVs will have the highest penetration (52% of total
households) among household appliances in 2016-17, rural
penetration is still estimated to be low at 33% in 2016-17.

81
Higher economic growth, low penetration and rising affordability
to drive long-term demand
• Replacement of cathode ray tube TVs in rural areas and multiple
ownership in urban areas could drive long-term growth.
• It is expected cathode ray tube TVs to disappear from the market by
2017-18, while panel TVs are likely to grow by about 8.5-9.5% CAGR
in volume terms between 2015-16 and 2020-21.
• In the refrigerator segment, the direct cool and frost-free segments
are likely to grow at 8-9% CAGR and 7-8% CAGR respectively in
volume terms between 2015-16 and 2020-21.
• While urban areas will drive demand for frost-free refrigerators,
semi-urban and rural areas will drive demand for direct cool
refrigerators, with rural consumers now considering the refrigerator
as a necessity. 82
Higher economic growth, low penetration and rising affordability
to drive long-term demand
• In the washing machine segment, growth in demand in volume
terms for fully automatic machines (about 11-12% CAGR ) could
outpace demand for semi-automatic machines (7.5-8.5% CAGR)
over the next five years.
• While urban areas are likely to drive demand for fully automatic
machines, with growing number of working women and rising
disposable incomes, price-sensitive consumers in semi-urban areas
will drive demand for semi-automatic machines.
• Conversely, demand from rural markets, where washing machines
will have 3-4% penetration (as of 2016-17), is likely to grow at a
slower pace due to availability of low-cost domestic help.

83
Higher economic growth, low penetration and rising affordability
to drive long-term demand
• As of 2016-17, room AC penetration is expected to be only 10-11% of
total Indian households.
• Over the next five years, from 2015-16 to 2020-21, the segment is
expected to record 12-13% growth in volume terms, riding on low
penetration, multiple ownership and increased consumer perception
about room ACs being a necessity.
• Split ACs sales volumes -- likely to grow by about 15-16% CAGR
from 2015-16 to 2020-21 vis-a-vis 0-1% growth for window ACs sales
volumes-- could drive growth.
• Urban markets are more likely to drive room AC sales, as price-
sensitive rural consumers still seem reluctant buy RACs.

84
Higher economic growth, low penetration and rising affordability
to drive long-term demand
• In the long term (2015-16 to 2020-21) the growth in the revenues of
the household appliances is estimated to be in the range of 9.5-10.5%
CAGR at a slightly slower pace than in the past five years (2010-11 to
2015-16) where growth witnessed was 11.4% CAGR.
• In the future, the growth will be driven by volumes (7-8% CAGR)
due to marginal rise in the realisations as compared to the past
where growth was driven by rise in realisations (7-8% CAGR) due to
increase in the input cost.

85