India's AC industry: From importer to global hub

Incentivization of energy-efficient devices, especially fans, refrigerators, and air conditioners, could have multi-layered benefits in managing the peak energy demand, upscaling India's technology to global levels for exports, managing trade deficit, and developing local ecosystems – World Bank Greetings folks, for my day 2, here’s a Sectoral overview of consumer durables. India is the fastest-growing market (consumer durables) currently, occupying the 6th spot in the world in terms of market size. By FY27, India is poised to move up two spots and become the 4th largest, beating the UK and Germany. The key product trends that are driving the industry currently and going forward are (1) premiumization and upgradation as young India moves towards getting a bigger Television, a fully automatic washing machine, and a more efficient AC. (2) Aesthetics and customizability become significantly important in this fast-paced ecosystem as we strive towards wanting a matching AC color to our furniture laminate. (3) Last but not exhaustively, a push towards sustainability and smart appliances has also gained significant relevance over the last few years, driving up opportunity and innovation. This sector contributes 0.6% towards the economy, but the growth opportunity is massive. Inferring from the MD&A of Voltas Ltd, only 10% of households in India have ACs, while the refrigerator penetration only stands at a mere 35%. Likely, the rural growth rate in the near future (and continuing) will outpace the urban counterpart, making it a massive untapped domestic market still to be explored. Voltas has emerged as the market leader in the AC segment, while LG and Samsung are leading the charge in the refrigerator market, and the washing machines industry enjoys a much more fragmented market with multiple regional players getting a slice of the pie. The sector is far from consolidation (1-5 players dominating) as there’s a fight from a multitude of regional players and global players in the dawn of PLI schemes and other steps like competitive direct tax rates and a streamlined indirect tax regime. In the next post, I will delve into further structural analysis of the sector. Thanks for reading! #thevaluationschool #equityresearch #voltas

🌏 India’s Cooling Revolution Starts Here. Every building, every cold room, every chiller—our comfort comes at a cost. Behind the hum of cooling lies a silent threat: high-GWP refrigerants heating our planet faster than we realize. But change is coming. ⚡ The U.S. will switch to R-454B by 2025—an eco-friendly, low-GWP refrigerant leading the next era of smart cooling. 🌿 Europe is already there. 🇮🇳 And now, it’s India’s turn. At Chillec™, we believe sustainable cooling isn’t just a trend—it’s a responsibility. We’re helping industries move toward AI-powered, green refrigeration systems that are efficient, compliant, and built for the future. Because real progress isn’t about cooling faster—it’s about cooling smarter. Let’s make India the hub of climate-conscious innovation in refrigeration. Join the movement. Be part of the change. Chillec™ — Smarter Cooling. Sustainable Future. #Chillec #GreenCooling #R454B #HVAC #Sustainability #India #Innovation #AI #ClimateAction

𝐈𝐧𝐝𝐢𝐚’𝐬 𝐑𝐞𝐚𝐥 𝐄𝐕 𝐒𝐮𝐜𝐜𝐞𝐬𝐬 𝐒𝐭𝐨𝐫𝐲 𝐋𝐢𝐞𝐬 𝐨𝐧 𝐓𝐡𝐫𝐞𝐞 𝐖𝐡𝐞𝐞𝐥𝐬! From just 8.5% in 2016 to an impressive 60.3% by YTD Sep’25, the 3W EV segment has completely transformed India’s mobility landscape, marking a complete shift in the country’s transport ecosystem and fleet operations. 𝐓𝐡𝐞 𝐬𝐭𝐨𝐫𝐲 𝐛𝐞𝐡𝐢𝐧𝐝 𝐭𝐡𝐞 𝐬𝐮𝐫𝐠𝐞: • 3W EV Market Share grew from 8.5% (2016) → 60.3% (2025) (Excl. Telangana | Source: Vahan) • In the last five years, overall 3W volumes jumped 200%, from ~3.9 lakh in 2021 to ~9.4 lakh units by Sep’25 • Driven by lower running costs, rising fuel prices, and strong fleet adoption for both cargo & passenger use cases • Increasing participation of fleet operators is reshaping urban and rural mobility economics • Government incentives, battery improvements, and reliable OEM networks have boosted confidence 3W EV Market Share Trend (Excl. Telangana) 2016 — 8.54% 2021 — 39.80% 2024 — 56.58% YTD Sep’25 — 60.30% This isn’t just an EV story, it’s a transport revolution that’s cutting down operational costs, creating livelihoods, and redefining India’s urban mobility narrative. #Motolytics #3WElectric #EVIndia #SustainableMobility #ElectricVehicles #3WMobility #CleanTransport #FleetElectrification #MahindraElectric #GreavesCotton #PiaggioIndia #EVolution #MakeInIndia #GreenMobility Suman Mishra, Praveen Singaraju, Aman Jain, Ajay CChhabra

🌍 India Takes a Bold Step Toward a Circular Electronics Economy ♻️ On October 14, 2025, India launched a five-year, $120 million initiative to accelerate the country’s transition toward a circular economy for electronics. Supported by the Global Environment Facility (GEF) and the United Nations Development Programme (UNDP), in partnership with the Ministry of Electronics and Information Technology (MeitY), this initiative aims to: ✅ Strengthen e-waste regulations and enforcement ✅ Promote eco-design and sustainable manufacturing ✅ Build infrastructure for recovering valuable and critical materials This milestone announcement also coincided with International E-Waste Day 2025, which focused globally on the recovery of critical raw materials from end-of-life electronics — a timely reminder of the value hidden in our discarded devices. As India continues to lead on sustainability and responsible innovation, initiatives like this are key to shaping a resilient and resource-efficient future. 🔗 Source: [UNDP India Press Release](https://lnkd.in/gGBZewSH) #CircularEconomy #EWaste #Sustainability #UNDP #GEF #India #ClimateAction #GreenTransition #sustainabilitynews #news

Growth is Electric, Air Quality Off. India’s consumer durables sector is witnessing a mixed performance this quarter. The Wires & Cables (W&C) segment continues to shine, driven by India’s ongoing infrastructure expansion and solid demand across both B2B and B2C markets. On the other hand, the Room Air Conditioner (RAC) segment is facing seasonal challenges. Reports indicate a sharp 50–60% decline in sales value and volume for Q2, as players adopt aggressive pricing strategies to clear inventory. A revival in RAC volumes is likely only by Q3 FY26, reflecting the cyclical nature of the market. Despite short-term profitability pressures, the overall outlook for the consumer durables sector remains positive. The strong performance of the W&C segment, backed by infrastructure growth and steady consumer demand, continues to “wire” the industry for sustainable, long-term expansion. #marketing #consumerdurables #businessinsights #indiagrowth #m360 Visit us at: www.marketing360.in Instagram: @marketing360.in Twitter: OfficialM360 Facebook: @marketing360 Source Link: http://bit.ly/3Wp6lHN Content Credits: Meshwa Gheewala.

🏁 Day 80/100 – Let’s Decode the Consumer Durables Sector! Q&A on the Air Conditioner Industry Here are some quick insights I noted while studying the Air Conditioner (AC) industry in India: 1. What are the barriers to entry? Air conditioners are a low-margin business. Even leading brands like Voltas and Blue Star operate with single-digit operating margins. It’s difficult for new players to enter and survive, especially with price wars in the market. 2. Is the industry an oligopoly or fragmented? It’s an oligopoly, with 4–5 major players holding most of the market share. 3. What’s the future of the industry over the next 10 years? As the Indian economy grows, more families will be able to afford ACs. People won’t stop using them — demand is expected to rise steadily. 4. What is the bargaining power of buyers? Customers have some bargaining power, but mostly in after-sales services or warranty negotiations — not much on pricing. 5. Does the industry depend on other industries? Not directly. The AC industry works mostly independently of other sectors. 6. What makes an industry leader? In my view, factors like: -Strong after-sales service -Reliable brand value -Word-of-mouth marketing For example, Voltas has built a strong reputation through consistent service quality and customer trust. Parth Verma #globalconsumerdurablemarket #marketsize #TVSchallenge #thevaluationschool #100DaysChallenge #ConsumerDurables #Voltas #FinanceCommunity #LinkedInLearning #InvestingIndia #StockMarket #SectorAnalysis

Refrigerated Supply Chains: India’s New Export Advantage,How temperature-controlled logistics are changing the game for Indian food and pharma exporters in 2025 isn’t just about cool trucks—it’s about a smarter value chain from Bengal’s banks to the world. With global buyers prioritising product integrity, brands shipping perishables can no longer rely on patchy cold storage or inconsistent transit solutions. Kolkata, India’s eastern logistics powerhouse, is emerging as a strategic launchpad, offering access to world-class reefer facilities and cutting-edge track-and-trace systems. Here’s what’s different now: advanced IoT monitoring reduces spoilage risks, seamless digital documentation accelerates customs at Kolkata Port, and government policy reforms (like PLI incentives for cold chain) are lowering barriers for ambitious exporters. Exporters should focus on four essentials—a reliable cold carrier network, data-backed route planning, compliance with temperature protocols, and partnership with tech-enabled LSPs who understand both product physics and regulatory timing. At PMEX Logistics, we see firsthand how even midsize Kolkata-based producers are tapping global markets they once thought out of reach—all by investing in purpose-built, temperature-assured supply chains. Our team’s insight: the edge isn’t just hardware, but integrating adaptive tech with local know-how. How are you approaching climate-sensitive exports in 2025? Share your challenges or wins below! #ColdChainIndia #FoodExport #PharmaSupply #KolkataLogistics #TemperatureControlled #MakeInIndia #SupplyChainInnovation #IoTLogistics #ExportIndia #GlobalTrade #PolicyMatters #IndianLogistics

📊 Tamil Nadu: The Strategic Leader in India’s Electronics Manufacturing Services (EMS) Tamil Nadu has firmly positioned itself as the epicenter of India’s EMS sector, accounting for a remarkable 41% of the nation’s total EMS output and generating US $14.6 billion in electronics exports. This performance is underpinned by: • A robust industrial ecosystem with advanced manufacturing clusters • Strong policy support and investor-friendly governance • A highly skilled workforce enabling scale and quality • Strengthening of supply chains for mobile devices, consumer electronics, and IT hardware Tamil Nadu’s strategic focus on high-value manufacturing and export competitiveness continues to attract leading global and domestic electronics manufacturers — reinforcing the state’s role as a critical growth engine for India’s digital economy. As the global demand for electronics accelerates, Tamil Nadu stands out as a preferred destination for sustainable, large-scale EMS investments. #InvestInTN #ElectronicsHub #EMS #ManufacturingLeadership #MakeInIndia #ElectronicsExports #DigitalEconomy

🚌⚡ 𝐈𝐧𝐝𝐢𝐚’𝐬 𝐄-𝐁𝐮𝐬 𝐌𝐚𝐫𝐤𝐞𝐭 𝐑𝐞𝐛𝐨𝐮𝐧𝐝𝐬 — 𝐃𝐞𝐥𝐡𝐢 𝐋𝐞𝐚𝐝𝐬 𝐭𝐡𝐞 𝐂𝐡𝐚𝐫𝐠𝐞! India’s 𝐞𝐥𝐞𝐜𝐭𝐫𝐢𝐜 𝐛𝐮𝐬 𝐦𝐚𝐫𝐤𝐞𝐭 𝐢𝐬 𝐛𝐚𝐜𝐤 𝐨𝐧 𝐭𝐡𝐞 𝐟𝐚𝐬𝐭 𝐭𝐫𝐚𝐜𝐤, and 𝐃𝐞𝐥𝐡𝐢 𝐢𝐬 𝐬𝐭𝐞𝐞𝐫𝐢𝐧𝐠 𝐭𝐡𝐞 𝐦𝐨𝐦𝐞𝐧𝐭𝐮𝐦. With a 𝐫𝐞𝐦𝐚𝐫𝐤𝐚𝐛𝐥𝐞 69% 𝐠𝐫𝐨𝐰𝐭𝐡 𝐢𝐧 𝐞-𝐛𝐮𝐬 𝐬𝐚𝐥𝐞𝐬 — 938 𝐮𝐧𝐢𝐭𝐬 in just the 𝐟𝐢𝐫𝐬𝐭 𝐡𝐚𝐥𝐟 𝐨𝐟 𝐅𝐘26 — the capital has 𝐬𝐮𝐫𝐩𝐚𝐬𝐬𝐞𝐝 𝐌𝐚𝐡𝐚𝐫𝐚𝐬𝐡𝐭𝐫𝐚 𝐚𝐧𝐝 𝐓𝐚𝐦𝐢𝐥 𝐍𝐚𝐝𝐮, setting a new benchmark for 𝐜𝐥𝐞𝐚𝐧 𝐚𝐧𝐝 𝐬𝐮𝐬𝐭𝐚𝐢𝐧𝐚𝐛𝐥𝐞 𝐮𝐫𝐛𝐚𝐧 𝐦𝐨𝐛𝐢𝐥𝐢𝐭𝐲. 📈 𝐒𝐭𝐚𝐭𝐞 𝐡𝐢𝐠𝐡𝐥𝐢𝐠𝐡𝐭𝐬: 𝐃𝐞𝐥𝐡𝐢: 69% rise (938 units) — leading India’s e-bus adoption 𝐌𝐚𝐡𝐚𝐫𝐚𝐬𝐡𝐭𝐫𝐚: Strong 48% growth (665 e-buses) 𝐓𝐚𝐦𝐢𝐥 𝐍𝐚𝐝𝐮: Jumped from just 5 to 251 units — a huge leap 𝐎𝐝𝐢𝐬𝐡𝐚: E-bus sales quadrupled Nationwide, 𝐞-𝐛𝐮𝐬 𝐬𝐚𝐥𝐞𝐬 𝐠𝐫𝐞𝐰 37% 𝐭𝐨 2,241 𝐮𝐧𝐢𝐭𝐬, reflecting the strong national push to 𝐞𝐥𝐞𝐜𝐭𝐫𝐢𝐟𝐲 𝐩𝐮𝐛𝐥𝐢𝐜 𝐭𝐫𝐚𝐧𝐬𝐩𝐨𝐫𝐭 and 𝐜𝐮𝐭 𝐝𝐢𝐞𝐬𝐞𝐥 𝐝𝐞𝐩𝐞𝐧𝐝𝐞𝐧𝐜𝐞. Key growth drivers include: 🔹 𝐏𝐨𝐥𝐢𝐜𝐲 𝐢𝐧𝐜𝐞𝐧𝐭𝐢𝐯𝐞𝐬 and supportive government schemes 🔹 𝐄𝐧𝐡𝐚𝐧𝐜𝐞𝐝 𝐜𝐡𝐚𝐫𝐠𝐢𝐧𝐠 𝐢𝐧𝐟𝐫𝐚𝐬𝐭𝐫𝐮𝐜𝐭𝐮𝐫𝐞 across major cities 🔹 𝐏𝐌 𝐄-𝐃𝐫𝐢𝐯𝐞 𝐒𝐜𝐡𝐞𝐦𝐞, lowering fleet costs and accelerating adoption India’s 𝐛𝐨𝐥𝐝 𝐞-𝐛𝐮𝐬 𝐫𝐞𝐯𝐨𝐥𝐮𝐭𝐢𝐨𝐧 is making 𝐜𝐥𝐞𝐚𝐧𝐞𝐫, 𝐪𝐮𝐢𝐞𝐭𝐞𝐫 𝐜𝐨𝐦𝐦𝐮𝐭𝐞𝐬 a reality for millions. 💡 Which city or route do you think should go electric next? 🔗 Read more: https://lnkd.in/gdysKXra #EVNews #EVIndustry #SustainableMobility #ElectricBus #PublicTransport #GreenIndia #CleanEnergy #EVMission

Cold Chain 2.0: Kolkata Leading Export Evolution,India’s export narrative is witnessing a seismic shift—driven by advanced cold chain solutions that are reshaping Kolkata’s port ecosystem. Once viewed as a bottleneck, outdated refrigeration technology is rapidly giving way to sophisticated, end-to-end systems: minimizing spoilage, maintaining regulatory compliance, and unlocking higher-value opportunities in food and pharma exports. For Indian exporters, this transformation is more than an infrastructure story—it’s a leap towards global reliability. With new temperature-controlled warehouses, smart IoT tracking, and faster reefer clearance procedures in Kolkata, perishables and sensitive pharmaceuticals reach distant markets fresher and safer than ever. This upgrade brings India on par with global best practices, signaling credibility to buyers from Europe, the US, and Asia-Pacific. Key takeaways: • Embrace IoT-powered monitoring for real-time visibility and compliance • Leverage port-centric cold storage to reduce inland transit spoilage • Integrate digital documentation for faster customs clearance At PMEX, we observe that strategic upgrades at Kolkata not only boost product shelf life and reduce losses, but also help Indian enterprises command better market prices. Thorough coordination among port authorities, tech partners, and exporter communities is the new normal—delivering both speed and certainty. How will these changes affect your export ambitions, or what challenges remain unmet? Drop your experiences—or questions—in the comments. Let’s discuss. #ColdChain #KolkataPort #IndianExports #PharmaLogistics #FoodSupplyChain #ExportGrowth #SmartLogistics #PerishableSupplyChain #PMEXLogistics #GlobalTrade #IoT #SupplyChainInnovation #TemperatureControl #IndiaLogistics #PortTechnology