Investments

FDI in the Appliances and Consumer Electronics (ACE) industry has nearly doubled to US$ 481 million by June 2022, up from US$ 198 million in 2021. Between April 2000-December 2022, electronic goods attracted FDI inflows of US$ 3.75 billion.

According to Department for Promotion of Industry and Internal Trade, between April 2020-March 2021 (FY21), exports of electronic goods from India stood at US$ 11.1 billion. In May 2022, US$ 1.34 billion worth of electronic goods were exported.

Following are some recent investments and developments in the Indian consumer durables sector.

• In the financial year (FY) 2022–23, India's exports of mobile phones doubled from US$ 5.45 billion (Rs. 45,000 crore) in 2021-22 to US$ 11.12 billion (Rs. 90,000 crore). India is the 2nd largest mobile manufacturer in the world.
• In 2022-23 (April-November) the export of white goods are as follows:
  • refrigerators, freezers and other refrigerating accounted for US$ 140.97 million (Rs. 116,223.32 lakh)
  • washing machines accounted for US$ 43.33 million (Rs. 35,819.59 lakh)
  • air conditioners accounted for US$ 177.60 million (Rs. 146,432.20 lakh)
  • electric lamps & Lighting fittings including tubes accounted for US$ 194.97 million (Rs. 160,750.62 lakh)
• In 2022-23, India produced wearables such as earphones and smartwatches worth US$ 970.31 million (Rs. 8,000 crore).
• Pay DTH has a total active subscriber count of around 66.62 million as of QE 31st December 2022. There are 388 operating private FM Radio channels in 113 cities run by 36 private FM Radio operators as of December 31, 2022.
• The advertisement income recorded by FM Radio operators for the quarter ending 31st December 2022 in respect of 388 private FM Radio stations is US$ 51.8 million (Rs. 427.18 crore). 408 Community Radio stations are operational as of December 31, 2022.
• In March 2023, Tirupati bags huge investments from TCL Group of US$ 606.44 million (Rs. 5,000 crore) for panel manufacturing.
• In June 2023, Goat Brand Labs acquired 80% in Chumbak at a deal value of US$ 12.12- 14.55 million (Rs. 100-120 crore).
• Vivo India has already invested US$ 291.09 million (Rs. 2,400 crore), and a further US$ 133.41 million (Rs. 1,100 crore) is expected to be invested by the end of 2023 to increase its manufacturing capacity and support the government's vision of making India a global export hub.
• India’s wearable market registered another record quarter, shipping 37.2 million units in the third quarter (July-September) of 2022, a growth of 56.4% YoY.
• According to a report from Counterpoint's Make in India service, shipments of "Made-in-India" smartphones increased 16% YoY in the second quarter of 2022 to reach over 44 million units.
• In September 2022, monthly mobile phone exports from India crossed the US$ 1 billion mark for the first time ever.
• According to a report by Counterpoint Research, India’s smart TV market grew by 74% YoY in the second quarter of 2022. Xiaomi stood as the leader with a 13% market share, followed by Samsung at 12%.
• As per TAM's latest AdEx report, television advertising for the durables sector has grown 2.5 times during January-May 2022, as compared to the same period in 2021. The sector grew 23% YoY in January-May 2022.
• Electrical appliances maker V-Guard Industries has announced plans to invest in new manufacturing plants. Over the next 12 months, the company will open four additional factories: two in Hyderabad, one in Vapi, and one in Uttarakhand.
• In FY23, Godrej Appliances announced plans to invest Rs. 200 crore (US$ 25.11 million) in the capacity expansion of its premium range.
• In November 2021, Tata Consumer Products (TCPL) signed definitive agreements to acquire 100% equity shares of Tata SmartFoodz Limited (TSFL) from Tata Industries Limited, for a cash consideration of Rs. 395 crore (US$ 53.13 million). This move was in line with TCPL’s strategic intent to expand into value-added categories.
• In September 2021, Blue Star Climatech, the wholly owned subsidiary of Blue Star, announced its plans to invest Rs. 550 crore (US$ 73.45 million) over the next few years to set up a new manufacturing facility at Sri City in Andhra Pradesh’s Chittoor district.
• In September 2021, US-based consumer electronics brand Westinghouse Electric Corporation, forayed into the Indian market by launching a range of TV sets. The brand collaborated with its Indian licensing partner Super Plastronics Pvt Ltd (SPPL) and signed an exclusive licensing agreement with it.
• In September 2021, Airtel Digital TV, the DTH arm of Bharti Airtel, introduced Made-in-India high-definition set-top boxes for customers. The boxes are being manufactured in Noida, Uttar Pradesh, by Skyworth Electronics. Airtel plans to fully transition to Made-in-India set-top boxes, including the high-end Airtel Xstream 4K Android TV box, by the end of 2021 and contribute towards local manufacturing and the Government of India’s Atmanirbhar vision.
• In August 2021, Lenovo announced that it is considerably expanding its local manufacturing capabilities in India across product categories such as PCs, laptops and smartphones, to satisfy rising consumer demand.
• In August 2021, Philips announced an investment of Rs. 300 crore (US$ 40.41 million), and plans to recruit 1,500 employees in India. The company announced plans to expand its Pune operations to increase manufacturing in India.
• In July 2021, Godrej & Boyce announced their entry into the dishwasher market and the aim to capture 15% market share by FY22. The company is focusing on key markets such as Mumbai, Hyderabad, Bengaluru and Delhi, and plans to expand to tier-II cities.