INDUSTRY
Consumer goods companies ride the heat wave, launch new products
- IBJ Bureau
- Apr 16, 2024
Consumer goods companies such as makers of cooling systems, beer and ice cream are attempting to capitalise on a hotter-than-usual summer season by cranking up output, launching new products and ramping up spending on marketing.
India, the world’s most populous nation expects 10 to 20 heat wave days, which it describes as temperatures hitting at least 40 degrees Celsius in the plains, from April through June this year, versus the normal four to eight days. Already temperatures have crossed 40 degrees in a few cities in the western Maharashtra and Gujarat.
The searing heat is why appliances maker Blue Star has launched dozens of new home air conditioner products as it targets a 25 per cent jump in revenue from that business this summer versus just a 5 per cent increase last year, according to its Managing Director B Thiagarajan.
US-based ice cream brand Baskin Robbins has launched 20 new products in India ahead of the summer season. “An unusually-hot year will significantly impact the sector and uplift consumer discretionary companies’ demand for selling air conditioners, fans, fridges, etc,” notes Akshay Mokashe, a senior research analyst of Axis Securities, adding that they will report robust growth numbers for the first quarter of the current financial year.
Report By