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Potential for Induction cooker in Indian market
Changes in the macroeconomic environment and governmental
policies can have a
substantial impact on the revenue and profits of an
organisation. The global landscapeis so fiercely competitive that
unless market players capitalise on the prospects that
come their way, they are sure to lag behind or lose out on
critical business opportunities
To cope with the ever increasing demand of petroleum and
associated products, the
government of India was forced to curb the number of LPG
cylinders per household, at
the same time cater to the needs of a 1.2 billion population.
With the petroleum industry
reeling under losses of more than Rs 44,563 crore through LPG
alone and the recent
loss of the value of the rupee leaves little or no option for
the department of petroleum
to impose stringent measures to balance the needs of the
petroleum industry with the
basic requirements of the people. So there is a scarcity of LPG
. One cannot rule out the
possibility of the governments decision being one amongst the
slew of measures to
strategically encourage consumers to move to alternate options
of kitchen fuel.
The government of India decision to impose a cap on the number
of subsidized LPG
cylinders per household due to scarcity has proved a boon to the
players in the fiercely
competitive induction cooker market. Families with a consumption
of more than nine
cylinders per year would need to shell out almost 130% more than
the subsidized rates
for every additional cylinder they purchase. The new motion
passed by the government
had left home makers fuming, since for many a household the
number of subsidized
cylinders provided are not sufficient to meet their household
needs. This forced families
to look at alternative means to reduce expenditure on cooking
gas. Thus a market for
Induction cooker is established.
Companies like Bajaj, Philips, Prestige, Khaitan, Jaipan used
this opportunity to
promote the use of the induction cooker as an alternative to the
LPG cylinder. An
induction stove uses electricity and works on the principle of
magnetic induction to heat
food. It is almost 80% more energy efficient and faster than
conventional heating
methods. An average city home uses about 12 LPG cylinders per
year. The induction
cooker priced at an average of Rs 2500 is almost two and a half
times the total spent for
LPG gas per year.
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Prestige, currently the leader with a market share of 25%,
closely followed by Bajaj at
17% are looking at aggressive marketing techniques to increase
popularity and create a
bigger demand for this relatively new concept. With the increase
in promotion and
improved dealer network, companies are also looking at providing
a robust aftermarket
service network for the customers. Customers relying on
induction cookers as a source
of energy for cooking require high quality, reliable products
with almost little or no
maintenance. Global players like Crompton Greaves, Kenwood, and
Philips with
advanced technology are also working to grab a piece of the pie
which seems to be ever
growing with the recent changes in government policy.
Unable to cope with the increase in demand and limited supply,
the strain on non-
renewable energy sources is evident with governmental policies
offering benefits to
companies to reduce carbon footprint. With emphasis gradually
shifting to renewable
green energy market players in this segment envisage a huge
potential in India. The use
of electricity as a source for cooking in itself has limitations
since a lot of villages in
India still lack electrification. Besides, most cities also fall
prey to power cuts during
summer with limited power supply. The government should develop
infrastructure to
provide clean renewable energy through gobar gas, solar energy
or windmills. Slow
governmental approvals, administration and policies continue to
hamper decisions andinvestment options of foreign players. With
foreign direct investment options slowing
opening up, the India market continues to offer huge potential
for companies to invest
and explore business opportunities for global and local players
in this industry.
References:
www.censusindia.gov.in
http://newindianexpress.com/cities/kochi/article1287646.ece
http://newindianexpress.com/cities/kochi/article1287646.ecehttp://newindianexpress.com/cities/kochi/article1287646.ece
