Investments

FDI in the Appliances and Consumer Electronics (ACE) industry nearly doubled to US$ 481 million by June 2022, up from US$ 198 million in 2021. Between April 2000- December 2023, electronic goods attracted FDI inflows of US$ 4.57 billion.

According to the 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.

• Foxconn plans to invest up to Rs. 1200 crore (US$ 144 million) to expand a factory and come up on company- owned land.
• Telangana’s homegrown company Resojet has entered into a memorandum of understanding with TCL for forging a joint venture and includes an investment of Rs. 225 crore (US$ 27.1 million). The joint venture will set up a consumer electronics manufacturing facility.
• In FY23, India's exports of mobile phones doubled from Rs. 45,000 crore (US$ 5.45 billion) in FY22 to Rs. 90,000 crore (US$ 11.12 billion). 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 Rs. 116,223.32 lakh (US$ 140.97 million)
  • washing machines accounted for Rs. 35,819.59 lakh (US$ 43.33 million)
  • air conditioners accounted for Rs. 146,432.20 lakh (US$ 177.60 million)
  • electric lamps & Lighting fittings including tubes accounted for Rs. 160,750.62 lakh (US$ 194.97 million)
• In 2022-23, India produced wearables such as earphones and smartwatches worth Rs. 8,000 crore (US$ 970.31 million).
• According to Morgan Stanley report, owing to a thriving economy and demographic shifts driving consumer demand, the markets for smartphones could triple to US$ 90 billion by 2032.
• The advertisement income recorded by FM Radio operators for the quarter ending 31st December 2022 in respect of 388 private FM Radio stations is Rs. 427.18 crore (US$ 51.8 million).408 Community Radio stations are operational as of December 31, 2022.
• In March 2023, Tirupati bags huge investments from TCL Group of Rs. 5,000 crore (US$ 606.44 million) 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 already invested Rs. 2,400 crore (US$ 291.09 million), 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 grew 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.