Likely curbs on imports lift shares of refrigerator companies

Any restriction on imports of refrigerators could also benefit local manufacturers Samsung Electronics and LG Electronics, the Indian units of Korean companies that are currently dominating the $5-billion market, said analysts.

Shares of Voltas and

declined 0.8% each on Friday, while Havells fell 1%. BPL shares gained 5%. NSE’s benchmark Nifty50 fell 1.7%.



India has an installed capacity of 23 million tonnes per annum, while imports account for around 8% of the total sales. The local refrigerator market is estimated at ₹35,000 crore and is dominated by a few multinational brands.

Whirlpool and Voltas are the prominent listed companies in the refrigerator segment. Three years ago, Tatas-owned air-conditioner maker Voltas tied up with Europe’s Arcelik, and set up a ₹1,000-crore plant in Sanand near Ahmedabad to manufacture home appliances such as refrigerators and washing machines. In 2020, Havells entered the refrigerator segment with the

brand.

“Local manufacturers like Lloyd (Havells) and VoltBeko (Voltas) stand to benefit from import restrictions,” said

Securities analyst Arafat Saiyed. “The GoI is focusing on make in India initiatives, and to promote this, import ban is necessary. India has a surplus capacity to manufacture refrigerators.”

The top 3 players in the refrigerator category – LG, Samsung and Whirlpool – have a nearly 75% market share. Videocon’s exit has resulted in market share gains for the top three, with Whirlpool being the biggest beneficiary owing to attractive product pricing.