Large scaled infrastructure development holds key

Union Minister Hardeep Singh Puri said infrastructure in the country is witnessing rapid growth and the poor are benefitting from it. Various schemes rolled out by the Centre are aimed at the welfare of the poor and underprivileged sections of the country. The Union Minister also noted that world-class standards have been ensured in infrastructure development. In 2014, there were 74 airports in the country, which has now increased to more than 150. The Indian Railways is making strides through trains, including Vande Bharat. Toilets have been constructed in more than 11 crore houses, he stated. More than four crore houses have been constructed under the Pradhan Mantri Awas Yojana.

AC market to grow at rapid pace this decade

According to a latest report, India Air Conditioner Market is anticipated to grow at a CAGR of 14.74% between 2022 and 2028. Renub Research has provided a thorough industry analysis with market share insights in a recent report titled India Air Conditioner Market: Global Industry Trends, Share, Size, Growth, Opportunity, and Forecast 2023-2028. The India air conditioner (AC) market surge is propelled by urbanization and increased disposable incomes. Urban migration creates a strong demand for ACs in cities, intensified by the growing apartment culture. Economic growth has boosted middle-class incomes, making ACs less expensive and accessible. Improved financing alternatives similarly widen customer access. The demand is moving toward energy-efficient inverter ACs due to heightened awareness of electricity expenses and environmental effects. Split ACs, with advanced capabilities like Wi-Fi connectivity and air purifiers, are gaining recognition over window ACs, reflecting evolving purchaser preferences in India's dynamic AC market.

India's sizzling summers drive a surge in air conditioner (AC) demand, emphasizing power efficiency. Both residential and industrial sectors prioritize more astonishing environmentally friendly and price-effective solutions. Soaring energy costs and environmental concerns spark a shift closer to power-efficient ACs, decreasing electricity payments and carbon footprints. Government projects, which include the Bureau of Energy Efficiency (BEE) star rating system, incentivize producers and consumers to undertake power-efficient models, shaping a more sustainable and low-priced trajectory in the dynamic panorama of the Indian AC market. India's Air Conditioner Market is projected to reach US$ 6.73 Billion by 2028. The room AC market in India is primed for substantial growth propelled by escalating demand from the residential sector.

Jewellery demand remains healthy

Titan’s October-December quarter (Q3) business update highlighted a 22-23% revenue growth in the standalone jewellery sales (excluding bullion sales), implying a 4-year compounded annual growth rate (CAGR) of 21.3%. The growth in gold (plain) and coins in this festive quarter notably exceeded the studded sales growth driven by higher consumer interest. Store additions also looked healthy, with 21 new Tanishq stores opened in Q3, taking the total count to 466 (+43 in 9 months of FY24) including 2 in the US and 1 in Singapore. Titan added 90 stores in Q3, pushing its total retail outlets to 2,949 stores (including Caratlane).

Outlook:

Domestic real estate market is likely to witness some consolidation in near term after prices rose in major key markets in 2023. With the domestic interest rates holding near multi year highs and economic momentum holding on, the broad outlook appears to be supportive for the sector. However, for housing demand in tier two cities, the overall prospects look supportive given the sustained thrust on infrastructure development and connectivity. This is likely to support the overall outlook for consumer durables segment over coming months.