Panasonic India and German Refrigerator Company “Liebherr” are making the competition tough for Indian Refrigerators players.

“In Feb’2018, Panasonic India unveiled its next-generation range of ‘Experience Fresh’ frost-free refrigerators which is equipped with an intelligent inverter & ECONAVI technology, while German-based company ‘Liebherr’ has invested Rs 500 crore to set up a manufacturing unit in Aurangabad, India and plans to roll out a new line of refrigerators for Indian mass premium segment.”
The new Panasonic range of refrigerator delivers optimum cooling and high energy saving, while the PrimeFresh and AG Clean technology ensure that the food retains its freshness & nutrients. The company manufactured the refrigerator in the newly launched maiden refrigerator factory which is located in Jhajjar, Haryana. The introductory range offers 10 models, in 336L and 307L capacity, along with the first time exclusive extended 2 years comprehensive warranty along with 12 years warranty on compressor. The Panasonic Intelligent inverter refrigerators with ECONAVI is designed to cool 50% faster while reducing electricity consumption –Inverter saves up to 49 percent and ECONAVI technology up to 10 percent of energy.
Germany based premium manufacturer of refrigeration and cooling appliance company ‘Liebherr Group’ has invested Rs 500 crore to set up a manufacturing unit in Aurangabad, India. Liebherr is in talks with organized retailers such as Croma, Reliance Retail, Vijay Sales, and a few local organized players too in India and said initially it will not be looking at online retailing channels as the target market is the mass premium segment. As per the company, it will go with authorized, well-trained distribution partners, and not every potential retailer is going to have access to the brand. The company will produce 19 different models with different colors and features in the cooler product segment and also top-mounted products in 2018. In 2019, it will add around 22 models and 20 additional models for a wide range of refrigerator availability in the next 3 years.
According to a recently published report of Bonafide Research “India Refrigerator Market Outlook, 2022”, overall refrigerator sales volume is expected to grow with a CAGR of more than 5% over the next four years. The direct cool segment dominates the refrigerator market with a 70% share and the rest 30% is of the frost-free segment. This scenario in the Indian market is set to change in the coming years. Now, consumers are moving toward technologically advanced products due to affordability offered by retailers by way of easy financing options. Features that were considered luxury have now become a necessity and started influencing the purchase of Indian consumers. Hence, frost-free refrigerators are getting momentum in the market. LG is a major player in the direct cool refrigerator segment whereas Samsung is known for its frost-free and premium segment refrigerators. In terms of region, Southern and Northern India together contributes more than 55% to the total refrigerator market.
The price of refrigerators may rise this year because of higher input costs and a new tax structure. Prices of components like compressors for ACs and refrigerators have already risen up by approximately 4%, which in turn will cause a higher price for the end products. However, companies are still relieved as they are looking upon festive seasons which are coming soon. Indians are very auspicious about the ‘Subh Muhrat’ therefore they purchase large appliances on such festive occasions. According to the industry players, refrigerator demand will not get much affected by the ‘GST Hurricane’ on such festive occasions. But rural markets may feel the heat of this price increase. On the other hand, some states like Maharashtra will have a positive impact after GST implementation. Manufacturers in Maharashtra would be the only ones getting relief under GST as they were previously charged octroi at the rate of 5% after the other taxes which were almost 25-26% on household electronic appliances. This made their tax structure much higher than other states but now prices could marginally decline there.
Major Companies
Major companies operating in the refrigerator market of India are Samsung India Electronics Private Limited, LG Electronics India Limited, Godrej & Boyce Manufacturing Company Limited, Hitachi Air Conditioning India Limited, Whirlpool of India Limited, Videocon Industries Limited, Panasonic India Private Limited, Haier Appliances (India) Private Limited, BSH Home Appliances Private Limited and Sharp Business Systems (India) Private Limited.