The consumer durables market in India was estimated to be around US$ 4.5 billion in 2006-07. The industry is set for sustained growth over a long term, fuelled by favourable consumer demographics, overall growth in services and industrial sectors. The rapid growth in this industry has made it an attractive investment option as the urban and rural markets in India continues to grow at an annual rate of 7 to 10 per cent and 25 per cent, respectively.

India is also emerging as a global base for handsets. India produced nearly 31 million mobile phones in 2006 worth about US$ 5 billion. This segment made the largest contribution to overall electronics production revenue and the total available market for semiconductors. Starting on an already strong base, over six million users are being added every month and are building a large local market for mobile manufacturers. Increased consumer demand is also expected to boost the white goods segment to achieve production levels of US$ 5.09 billion by the end of 2007-08, against US$ 4.54 billion in 2006-07, with a growth rate of 12.5 per cent.

The drivers for demand have been the improvement in life style and higher aspirations of urban middle class and an increase in disposable incomes. As a result, brands account for 10 per cent of the total consumer goods market in India, with organised retailing accounting for around two per cent of the total industry.

Click Here to Download