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Consumer durable cos eye Pay gains
Eid, Dusshera, Durga Puja, Diwali and a pay revision windfall for nearly 5 million government employees, all in one month, is one big opportunity consumer goods companies are hoping to cash in, reports Ruchi Hajela.
Eid, Dusshera, Durga Puja, Diwali and a pay revision windfall for nearly 5 million government employees, all in one month, is one big opportunity consumer goods companies are hoping to cash in.
Consumer durables manufacturers hemmed in by high input costs and rising interest rates, are now expecting to earn a quarter of their annual revenues during October alone.
Videocon expects to sell close to 17 lakh units of various product and earn revenues worth Rs 1,000 crore during the month, a quarter of its last year’s turnover, Sandeep Tiwari, head, marketing, said.
“We had a turnover close to Rs 325 crore last year and expect to generate close to Rs 50 crore during the festive period,” said Pranay Dhabhai, chief operating officer at Haier Appliances India.
Other companies echoed similar opinion. “We expect to generate about 35-40 per cent of our annual revenue in October,” said Ravinder Zutshi, deputy managing director, Samsung Electronics.
The company had clocked $1.3 billion revenues last year.
LG Electronics said it was expecting a 30 per cent sales rise during October. “Diwali provides the biggest peak, as much as 50-80 per cent compared to an average month’s sales,” V Ramachandran, director, marketing, LG said.
Retail chains are also anticipating big jump in sales.
“We do a business of about Rs 3,000 per square feet at our stores and we expect the same to double during October,” said Atul Jain, country head, Jumbo Electronics Retail Ltd.
Big Bazaar is expecting a 50 per cent jump in its sales during the month.
