Air Treatment Products in India

AIR TREATMENT PRODUCTS IN
INDIA
Euromonitor International
April 2015
AIR TREATMENT PRODUCTS IN INDIA
LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1
Trends .......................................................................................................................................... 1
Competitive Landscape ................................................................................................................ 2
Prospects ..................................................................................................................................... 2
Category Data .............................................................................................................................. 3
Table 1
Table 2
Table 3
Table 4
Table 5
Table 6
Table 7
Table 8
Table 9
Table 10
Sales of Air Treatment Products by Category: Volume 2009-2014 .............. 3

Sales of Air Treatment Products by Category: Value 2009-2014 ................. 3
Sales of Air Treatment Products by Category: % Volume Growth
2009-2014 .................................................................................................... 3
Sales of Air Treatment Products by Category: % Value Growth 20092014 ............................................................................................................. 4
NBO Company Shares of Air Treatment Products: % Volume 20102014 ............................................................................................................. 4
LBN Brand Shares of Air Treatment Products: % Volume 2011-2014 ......... 5
Forecast Sales of Air Treatment Products by Category: Volume 20142019 ............................................................................................................. 6
Forecast Sales of Air Treatment Products by Category: Value 20142019 ............................................................................................................. 6
Forecast Sales of Air Treatment Products by Category: % Volume
Growth 2014-2019 ....................................................................................... 6
Forecast Sales of Air Treatment Products by Category: % Value
Growth 2014-2019 ....................................................................................... 7
Passport

HEADLINES
Air treatment products records retail volume growth of 5% in 2014 to reach 38 million units
and current value growth of 11% to reach Rs137 billion in 2014
The gloomy economic situation over the first half of 2014 results in moderate growth for the
entire year
Split air conditioners continues to perform well with current value growth of 16% and volume
growth of 9%
The average unit price of air treatment products increases by 5% in 2014
Crompton Greaves continues to lead air treatment products with a 24% volume share
Air treatment products is set to grow by a retail volume CAGR of 6% over the forecast period
TRENDS
Air treatment products registered retail volume growth of 5% and 11% in current value terms
in 2014, which was an improvement over 2013. The poor economic situation over the first half
of 2014 and subsequent improvement in the economy resulted in a moderate growth rate of
5% in volume terms.
Ceiling fans continued to dominate air treatment products with its volume share actually
increasing over the years. The growth of ceiling fans was due to its strong penetration and
longer summers in most parts of the country in 2014. The humid weather in some parts of the
country demands a ceiling fan over an air cooler for better cooling.
There continued to be negligible demand for room air conditioners, humidifiers and
dehumidifiers in 2014, which also limited the growth of air treatment products. These products
continued to have lower awareness and lower perceived benefits among Indian consumers.
Air purifiers, however, grew for institutional customers but remained negligible for retail
customers mainly due to the high cost of these products and lower consumer awareness.
Leading companies entered India or expanded in the country in 2014 after high air pollution
levels in several cities was reported by WHO. Institutional customers and expatriates were the
key target customers although households with sick members of the family were also
interested in buying an air purifier for their home.
Split air conditioners continued to be the best performer in 2014, posting volume growth of 8%
due to the continued transition from window air conditioners to split air conditioners mainly in
urban India. The harrowing price gap between split air conditioners and window air
conditioners was one of the key reasons for this performance, as split air conditioners were
based on superior technology and were aesthetically appealing over window air conditioners.
Window air conditioners witnessed a contraction in volume sales of 12% in 2013 but
experienced a marginal improvement in 2014, though growth still contracted, as people in
small cities upgraded from air coolers to cheaper window air conditioners due to the long
summer.
The average unit price of air treatment products rose by 5% in 2014 due to an increase in the
prices of air conditioners, cooling fans and air coolers. This was due to rising raw material
costs and growth in demand for air conditioners with a good energy rating.
Passport
The penetration of air conditioners continued to be low in 2014, primarily due to low per capita
incomes and the high cost of air conditioners over alternatives, such as air coolers and
cooling fans.
COMPETITIVE LANDSCAPE
Crompton Greaves continued to lead air treatment products with a 24% volume share in
2014. The companys leadership is due to its strong position in ceiling fans, in which it held a
volume share of 29% in 2014. Ceiling fans account for over 80% of volume sales of air
treatment products and therefore defines the overall movement of entire air treatment
products.
There has not been much difference in the category shares of the leading companies. Baja
Electricals ranked second in air treatment products with an 18% volume share in 2014. This
was because ceiling fans performed in same way as in the previous year due to the absence
of any specific marketing efforts or new launches.
There continued to be little differentiation in mass products, such as ceiling fans, desk fans
and cooling fans. Of these only ceiling fans witnessed some aesthetically appealing launches.
Companies, such as Bajaj, Polar Industries and Crompton Greaves, offer premium branded
products, while there are also many unbranded and low-quality products available in the
marketplace. Thus, price is a major differentiator for these products. In the case of air
conditioners, energy rating is one of the most important factors.
Air purifiers have attracted the interest of leading international and domestic companies as
such products perform well in developed countries, with India also reporting high air pollution.
Companies, such as Daikin Airconditioning, Eureka Forbes, Philips, Sharp, Panasonic and
Blueair, have either entered the category or strengthened their competitive positions in India.
The top nine companies in air treatment products were domestic players in 2014 mainly
because ceiling fans, which was not a very technology intensive category, accounted for a
large share of air treatment products. The only international company in the top 10 was LG
Electronics due to the companys strong position in air conditioners.
PROSPECTS
The volume growth of air treatment products is expected to improve and reach a CAGR of 6%
during 2014-2019. Air treatment products will continue to be boosted by the growing sales of
air conditioners, especially split air conditioners. Again the demand for energy efficient air
conditioners will help drive value sales.
Split air conditioners is expected to be the fastest growing category in air treatment products
with a 10% CAGR in volume terms over the forecast period. During the same period, window
air conditioners is set to witness a contracting CAGR of 7% due to the growing preference for
split air conditioners.
Ceiling fans will continue to hold a major share at 80% of air treatment products during the
forecast period, primarily due to increasing temperatures in areas, such as hill stations, where
there was no need for fans just a few years back.
Air purifiers is set to witness double-digit growth over the forecast period although the demand
will mainly come from expatriates and institutions, such as business parks, hospitals and
resorts. The category is expected to remain niche for retail customers during the forecast
period, only being bought by people with respiratory problems.
Passport
Passport
CATEGORY DATA
Table 1
Sales of Air Treatment Products by Category: Volume 2009-2014
'000 units
Air Purifiers
Cooling
- Air Conditioners
- Air Coolers
- Ceiling Fans
- Cooling Fans
Dehumidifiers
Humidifiers
Other Air Treatment
Products
Air Treatment Products
Source:
2009
2010
2011
2012
2013
2014
25,883.2
2,233.0
1,474.5
20,086.6
2,089.1
-
30,735.7
2,371.0
1,627.0
24,405.2
2,332.6
-
32,679.5
2,472.0
1,747.7
26,015.9
2,443.9
-
34,482.7
2,548.6
1,861.8
27,527.4
2,544.9
-
36,195.8
2,619.1
1,939.6
28,991.9
2,645.1
-
38,150.7
2,728.9
2,057.6
30,603.8
2,760.4
-
25,883.2
30,735.7
32,679.5
34,482.7
36,195.8
38,150.7
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 2
Sales of Air Treatment Products by Category: Value 2009-2014
INR million
Air Purifiers
Cooling
- Air Conditioners
- Air Coolers
- Ceiling Fans
- Cooling Fans
Dehumidifiers
Humidifiers
Other Air Treatment
Products
Source:
2009
2010
2011
2012
2013
2014
80,440.2
43,869.3
5,223.6
29,683.9
1,663.5
-
90,228.6
44,919.7
5,963.3
37,401.7
1,943.9
-
102,055.0
50,673.1
6,711.1
42,485.7
2,185.1
-
112,788.6
55,767.2
7,477.5
47,125.2
2,418.7
-
123,929.2
61,951.0
8,249.9
51,064.8
2,663.4
-
137,286.2
69,823.9
9,039.4
55,502.4
2,920.5
-
80,440.2
90,228.6
102,055.0
112,788.6
123,929.2
137,286.2
Table 3
Sales of Air Treatment Products by Category: % Volume Growth 2009-2014
% volume growth
Air Purifiers
Cooling
- Air Conditioners
- Air Coolers
- Ceiling Fans
- Cooling Fans
Dehumidifiers
Humidifiers
Other Air Treatment Products
2013/14
2009-14 CAGR
2009/14 Total
5.4
4.2
6.1
5.6
4.4
5.4
8.1
4.1
6.9
8.8
5.7
8.1
47.4
22.2
39.5
52.4
32.1
47.4
Source:
Passport
Table 4
Sales of Air Treatment Products by Category: % Value Growth 2009-2014
% current value growth
Air Purifiers
Cooling
- Air Conditioners
- Air Coolers
- Ceiling Fans
- Cooling Fans
Dehumidifiers
Humidifiers
Source:
2013/14
2009-14 CAGR
2009/14 Total
10.8
12.7
9.6
8.7
9.7
10.8
11.3
9.7
11.6
13.3
11.9
11.3
70.7
59.2
73.0
87.0
75.6
70.7
Table 5
NBO Company Shares of Air Treatment Products: % Volume 2010-2014
% retail volume
Company
Crompton Greaves Ltd
Bajaj Electricals Ltd
Usha International Ltd
Orient Paper &
Industries Ltd
Khaitan Electricals Ltd
Havells India Ltd
Polar Industries Ltd
Symphony Comfort
Systems Ltd
Voltas Ltd
LG Electronics India
Pvt Ltd
Kenstar Kitchen
Appliances India Ltd
Samsung India
Electronics Pvt Ltd
Daikin Airconditioning
India Pvt Ltd
Panasonic Home
Appliances India Co Ltd
Videocon Industries Ltd
Blue Star Ltd
Godrej & Boyce Mfg Co Ltd
Whirlpool of India Ltd
Carrier Midea India Pvt
Ltd
Haier Appliances India
Pvt Ltd
MIRC Electronics Ltd
Electrolux AB
2010
2011
2012
2013
2014
21.7
15.5
14.3
9.4
22.2
16.8
14.8
9.4
22.8
17.5
15.4
9.3
23.6
18.2
16.0
9.4
23.7
18.1
16.0
9.4
7.4
4.0
2.7
1.8
6.6
3.3
2.6
2.0
6.2
2.9
2.5
2.1
6.6
3.1
2.6
2.2
6.5
3.3
2.5
2.3
1.4
1.5
1.4
1.5
1.4
1.1
1.4
1.2
1.5
1.3
1.2
1.2
1.2
1.1
1.1
1.2
0.9
0.7
0.8
0.8
0.1
0.2
0.5
0.5
0.6
0.2
0.3
0.7
0.6
0.5
0.5
0.7
0.3
0.2
-
0.5
0.6
0.3
0.3
-
0.5
0.7
0.3
0.2
0.2
0.5
0.4
0.3
0.2
0.2
0.5
0.3
0.3
0.2
0.2
0.1
0.1
0.2
0.2
0.2
0.2
0.1
0.3
0.2
0.2
0.2
0.2
0.2
0.2
0.2
Passport
Hitachi Home & Life

Solutions (India) Ltd
Fedders Lloyd Corp Ltd
Carrier Aircon Ltd
Standard Electric
Appliances Ltd
Others
Total
Source:
0.2
0.2
0.2
0.2
0.1
0.3
-
0.1
0.2
-
0.1
-
0.1
-
0.1
-
14.7
100.0
14.1
100.0
12.8
100.0
10.1
100.0
10.4
100.0
Table 6
LBN Brand Shares of Air Treatment Products: % Volume 2011-2014
% retail volume
Brand
Compton Greaves
Bajaj
Usha
Orient
Khaitan
Havells
Polar
Symphony
Voltas
LG
Kenstar
Samsung
Daikin
Panasonic
Videocon
Blue Star
Godrej
Whirlpool
Carrier
Haier
Onida
Electrolux
Hitachi
Lexus
Lloyd
Carrier
Standard
Others
Total
Source:
0.2
Company
2011
2012
2013
2014
Crompton Greaves Ltd

Bajaj Electricals Ltd
Orient Paper &
Industries Ltd
Khaitan Electricals Ltd
Havells India Ltd
Polar Industries Ltd
Symphony Comfort
Systems Ltd
Voltas Ltd
LG Electronics India
Pvt Ltd
Kenstar Kitchen
Appliances India Ltd
Samsung India
Electronics Pvt Ltd
Daikin Airconditioning
India Pvt Ltd
Panasonic Home
Appliances India Co Ltd
Videocon Industries Ltd
Blue Star Ltd
Godrej & Boyce Mfg Co Ltd
Whirlpool of India Ltd
Carrier Midea India Pvt
Ltd
Haier Appliances India
Pvt Ltd
MIRC Electronics Ltd
Electrolux AB
Hitachi Home & Life
Solutions (India) Ltd
Fedders Lloyd Corp Ltd
Carrier Aircon Ltd
Standard Electric
Appliances Ltd
22.2
16.8
14.6
9.4
22.8
17.5
15.3
9.3
23.6
18.2
15.9
9.4
23.7
18.1
15.9
9.4
6.6
3.3
2.6
2.0
6.2
2.9
2.5
2.1
6.6
3.1
2.6
2.2
6.5
3.3
2.5
2.3
1.4
1.5
1.4
1.1
1.4
1.2
1.5
1.3
1.2
1.2
1.1
1.1
0.9
0.7
0.8
0.8
0.2
0.5
0.5
0.6
0.3
0.7
0.6
0.5
0.5
0.6
0.3
0.3
-
0.5
0.7
0.3
0.2
0.2
0.5
0.4
0.3
0.2
0.2
0.5
0.3
0.3
0.2
0.2
0.1
0.2
0.2
0.2
0.3
0.2
0.2
0.2
0.2
0.2
0.2
0.2
0.2
0.2
0.2
0.2
0.1
0.1
0.2
-
0.1
0.1
-
0.1
0.1
-
0.1
0.1
-
14.1
100.0
12.8
100.0
10.1
100.0
10.4
100.0
Table 7
Passport
Forecast Sales of Air Treatment Products by Category: Volume 2014-2019
'000 units
Air Purifiers
Cooling
- Air Conditioners
- Air Coolers
- Ceiling Fans
- Cooling Fans
Dehumidifiers
Humidifiers
Other Air Treatment
Products
Source:
2014
2015
2016
2017
2018
2019
38,150.7
2,728.9
2,057.6
30,603.8
2,760.4
-
40,405.8
2,880.3
2,190.3
32,452.3
2,882.9
-
42,824.9
3,070.2
2,300.2
34,441.6
3,012.8
-
45,434.5
3,295.9
2,408.3
36,580.5
3,149.8
-
48,241.4
3,562.0
2,514.3
38,870.4
3,294.7
-
51,261.6
3,876.7
2,621.7
41,315.3
3,447.8
-
38,150.7
40,405.8
42,824.9
45,434.5
48,241.4
51,261.6
Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Table 8
Forecast Sales of Air Treatment Products by Category: Value 2014-2019
INR million
Air Purifiers
Cooling
- Air Conditioners
- Air Coolers
- Ceiling Fans
- Cooling Fans
Dehumidifiers
Humidifiers
Other Air Treatment
Products
Source:
2014
2015
2016
2017
2018
2019
137,286.2
69,823.9
9,039.4
55,502.4
2,920.5
-
142,400.2
73,588.7
9,194.5
56,621.4
2,995.5
-
149,058.7
78,491.7
9,314.3
58,175.9
3,076.9
-
157,619.3
84,848.8
9,437.0
60,166.8
3,166.8
-
167,700.9
92,606.6
9,385.2
62,455.1
3,254.0
-
176,376.9
100,005.4
9,143.6
63,920.7
3,307.3
-
137,286.2
142,400.2
149,058.7
157,619.3
167,700.9
176,376.9
trade sources
Table 9
Forecast Sales of Air Treatment Products by Category: % Volume Growth

2014-2019
% volume growth
Air Purifiers
Cooling
- Air Conditioners
- Air Coolers
- Ceiling Fans
- Cooling Fans
Dehumidifiers
Humidifiers
2014/15
2014-19 CAGR
2014/19 Total
6.3
8.8
4.3
6.3
4.6
6.3
6.1
7.3
5.0
6.2
4.5
6.1
34.4
42.1
27.4
35.0
24.9
34.4
Source:
Table 10
Passport
trade sources
Forecast Sales of Air Treatment Products by Category: % Value Growth

2014-2019
% constant value growth
Air Purifiers
Cooling
- Air Conditioners
- Air Coolers
- Ceiling Fans
- Cooling Fans
Dehumidifiers
Humidifiers
Source:
2014/2015
2014-19 CAGR
2014/19 TOTAL
5.2
8.0
-2.6
2.3
1.6
5.2
5.1
7.4
0.2
2.9
2.5
5.1
28.5
43.2
1.2
15.2
13.2
28.5
trade sources

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AIR TREATMENT PRODUCTS IN

AIR TREATMENT PRODUCTS IN INDIA

LIST OF CONTENTS AND TABLES

Sales of Air Treatment Products by Category: Volume 2009-2014 .............. 3

AIR TREATMENT PRODUCTS IN INDIA

AIR TREATMENT PRODUCTS IN INDIA

AIR TREATMENT PRODUCTS IN INDIA

AIR TREATMENT PRODUCTS IN INDIA

Sales of Air Treatment Products by Category: Volume 2009-2014

Sales of Air Treatment Products by Category: Value 2009-2014

Sales of Air Treatment Products by Category: % Volume Growth 2009-2014

AIR TREATMENT PRODUCTS IN INDIA

Sales of Air Treatment Products by Category: % Value Growth 2009-2014

% current value growth

NBO Company Shares of Air Treatment Products: % Volume 2010-2014

AIR TREATMENT PRODUCTS IN INDIA

Hitachi Home & Life

LBN Brand Shares of Air Treatment Products: % Volume 2011-2014

Crompton Greaves Ltd

AIR TREATMENT PRODUCTS IN INDIA

Forecast Sales of Air Treatment Products by Category: Volume 2014-2019

Forecast Sales of Air Treatment Products by Category: Value 2014-2019

Forecast Sales of Air Treatment Products by Category: % Volume Growth

AIR TREATMENT PRODUCTS IN INDIA

Forecast Sales of Air Treatment Products by Category: % Value Growth

% constant value growth

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