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Household Appliances
February 2020
Air Conditioners Refrigerators Deep Freezers Television
Microwave Oven Water Dispensers Washing Machine Transformers
Energy Meters
Switchgears
Industry | Product Line
Global Dynamics
Industry | Snapshot
Source: Household Appliances Report – 2020 by Statistica
• Market divided into two segments:
• Major Appliances
• Refrigerator
• Deep Freezers
• Dishwashers
• Electric and Gas Ovens
• Washing Machines
• Small Appliances
• Vacuum Cleaners
• Toasters
• Irons
• Grills
• Roasters
• Coffee Machines
• CY19:
• Industry Revenue | $ 524bln
• Expected growth rate ~ 9%
• Major Appliances | largest segment by revenue ~ 64% | $ 337bln
• Main impact | prices (82%) and volume (18%)
• Revenue growth | 2.3%
• Small Appliances | segment by revenue ~ 36% | $ 187bln
• Small Kitchen Appliances | share in revenue ~ 52%
• Industry Drivers | high consumer income
Small Kitchen Appliances
Local Dynamics
Industry | Snapshot
FY19
• Manufacturing Segment | LSM
• Share in manufacturing | 78%
• Share in GDP | 10.2%
• Growth declined | 7.8% (FY18: 6.3%), Target | 8.1%
• Electronics Sector
• Share in LSM | 23.7% (FY18: 73.8%)
• Share in GDP | 2.1%
• Growth | 23.7%
• Key driver | air conditioners and deep freezers
• Industry Drivers
• Population Growth
• Pakistan | 6th populated country
• Average Population Growth | 2%
• Urbanization
• Growth | 1%
• Improved disposable income
• Per Capital Income | up by 6%
• Spending on household appliance | 2-3%
Source: Pakistan Economic Survey 2018-19 and Household Integrated Economic Survey
1,0
33
,274 1
,37
7,8
46
1,5
39
,194
1,6
61
,327
33
9,7
62
39
7,5
50
42
8,0
99
42
1,2
49
47
2,6
52
51
5,4
99
49
2,5
15
35
9,0
29
20
9,0
45
12
6,4
21
12
7,9
79
11
6,6
67
26
,61
3
38
,63
9
82
,39
4
30
,90
8
4,4
25
6,5
95
13
,94
9
12
,35
0
C Y 1 9 C Y 1 8 C Y 1 7 C Y 1 6
PRODUCTION
Refrigerators Television Sets Air conditioners Deep Freezers Transformers Switch Gears
Growth in Production:
• Deep Freezers | 79%
• Air Conditioners | 32%
Industry | Production
Source: Pakistan Bureau Of Statistics
Decline in Production:
• Switch Gears | 64%
• Refrigerators | 38%
• Television Sets | 19%
• Transformers | 14%
25%19% 19%
20%21% 21%
15%19% 19%
10% 13% 13%
10% 10% 10%
20% 18% 18%
0%
20%
40%
60%
80%
100%
120%
CY19 CY18 CY17
Air Conditioner
Haier Digital World Orinet Dawlance Pak Elektron Limited Others
27% 32% 32%
25%
32% 32%
24%12% 12%
15% 20% 20%5%
2% 2%4% 2% 2%
0%
20%
40%
60%
80%
100%
120%
CY19 CY18 CY17
Refrigerator
Dawlance Pak Elektron Limited Haier Orinet Waves Others
Industry | Market Share
Source: Industry Players
• High Concentration | Top 3
players ~ 80% share
• Market Leaders | Dawlance
and PEL
• Moderate Concentration | Top
3 players ~ 60% share
• Market Leaders | Haier and
Gree
28% 28% 28%
24%11% 11%
21%
21% 21%
17%
26% 26%
7% 11% 11%
3% 3% 3%
0%
20%
40%
60%
80%
100%
120%
CY19 CY18 CY17
Deep Freezer
Waves Pak Elektron Limited Haier Varioline Dawlance Others
50%43% 43%
15%20% 20%
15% 14% 14%
10%5% 5%
10%18% 18%
0%
20%
40%
60%
80%
100%
120%
CY19 CY18 CY17
Microwave Oven
Dawlance Orient Haier Pak Elektron Limited Others
Industry | Market Share
Source: Industry Players
• High Concentration | Top 3
players ~ 75% share
• Market Leaders | Waves and
PEL
• High Concentration | Top 3
players ~ 80% share
• Market Leaders | Dawlance
and Orient
31%40% 40%
24%
24% 24%10%
8% 8% 8%5% 10% 10%
22% 18% 18%
0%
20%
40%
60%
80%
100%
120%
CY19 CY18 CY17
Distribution Transformers
Pak Elektron Limited Transfo power Hammad & Co. JF Industries Elmetec Others
81% 81% 81%
19% 19% 19%
0%
20%
40%
60%
80%
100%
120%
CY19 CY18 CY17
Power Transformers
Pak Elektron Limited Heavy Electrical Complex
Industry | Market Share
Source: Industry Players
• Two player segment
• PEL maintains high market
share
• Moderate Concentration | Top
3 players ~ 65% share
• Market Leaders | PEL and
Transfo Power
22% 19% 19%
17% 18% 18%
16% 15% 15%
10% 16% 16%
10% 9% 9%
25% 22% 22%
0%
20%
40%
60%
80%
100%
120%
CY19 CY18 CY17
Energy Meters
Creative Pak Elektron Limited KBK Micro Tech Accurate Others
42%
25% 25%
25%
16%
10% 10%
14%
20% 20%
0%
20%
40%
60%
80%
100%
120%
CY19 CY18 CY17
Switchgears
Pak Elektron Limited Tariq Seimens Siddiq Sons
Industry | Market Share
Source: Industry Players
• PEL gains market share ~
45%
• Small players wiped out
• Low Concentration | Top 3
players ~ 55% share
• Market Leaders | Creative and
PEL
Product Line Feb'20 Jun'19 Jun'18
Refrigerators 44,999 44,769 41,704
Air conditioners 76,499 77,051 58,511
Deep Freezers 47,384 49,306 46,513
Wasing Machines 122,999 115,619 108,682
Micowave Oven 16,499 12,250 10,342
Water Dispenser 18,999 16,095 14,474
LED TV 30,901 29,962 28,408
Energy Meters 8,780 9,504 15,078
Switch Gears 124,200 172,105 221,362
Power Transformers 2,587,000 5,161,420 6,219,327
Distribution Transformers 503,000 866,665 931,850
Average Prices
Appliancs Segment
Power Segment
Industry | Price Trend
Source: Industry Players and Shophive
Industry | Regulatory Structure
Source: Pakistan Customs Tariff 2019-20
CBU AC Parts
Customs Duty 20% 16%
Additional Custom Duty 1% 0%
Regulatory Duty 40% 0%
Sales Tax 17% 17%
Additional Sales Tax 3% 0%
DescriptionFY19
Regulatory Structure
* No change in regulatory structures since FY18
Industry | Outlook
• Strong Competition among industry players
• High reliance on imports – Leading to rising cost of production
• Industry margins under pressure though cost passed on to consumers in most segments
• Demand could be impacted due to high inflation and rising prices – Volumes already down
especially in refrigerators
• Power Segment dependent on Government spending through PSDP utilization and reform
programs
• Potential for exports to Afghanistan, Africa and UAE (power segment)
DISCLAIMERPACRA has used due care in preparation of this document. Our information has been obtained fromsources we consider to be reliable but its accuracy or completeness is not guaranteed. The informationin this document may be copied or otherwise reproduced, in whole or in part, provided the source isduly acknowledged. The presentation should not be relied upon as professional advice.
Analyst Faiqa Qamar
Contact Number: + 92 42 3586 9504
