Consumer goods makers in India are accelerating festive season production by up to 30% compared to last year, according to a report by the Economic Times. The ramp-up is fueled by optimism that demand momentum will sustain, despite concerns over weather conditions in rural India.
Leading electronics contract manufacturers such as Dixon Technologies and PG Electroplast have highlighted a "high" double-digit increase in orders across categories including televisions, lighting products, washing machines, and refrigerators, according to the report. PG Electroplast, which supplies to brands such as LG, Midea, Voltas, Whirlpool, and Daikin, said its festive order book has grown by 40% over last year. Dixon counts Samsung, Xiaomi, Haier, and Philips among its customers.
Consumer electronics brands including LG Electronics, Godrej Appliances, Haier, and BSH Home Appliances said their factories are operating at full capacity, with additional shifts to meet demand. BSH, which sells products under the Bosch and Siemens brands, has scaled up festive production by up to 60% year-on-year, per the Economic Times.
Festive Season and Market Context
The festive season in India starts with Onam in Kerala and Ganesh Chaturthi in Maharashtra, with the core season from Navratri in October till Diwali in November. The season is considered India's biggest consumption period, accounting for as much as 30% of annual sales across several categories.
| Brand/Manufacturer | Production Increase / Order Book Growth | Key Customers / Remarks |
|---|---|---|
| Consumer goods makers overall | Up to 30% vs last year | — |
| Dixon Technologies | “High” double-digit order increase | Samsung, Xiaomi, Haier, Philips |
| PG Electroplast | Festive order book up 40% QoQ | LG, Midea, Voltas, Whirlpool, Daikin |
| BSH Home Appliances | Festive production up to 60% YoY | Bosch, Siemens brands |
| V-Mart Retail | Building inventory at double-digit pace | — |
| Reliance Retail | Inventory levels up by double digits | Starting Independence Day sales in August |
V-Mart Retail is also building festive season inventory at a double-digit pace. Reliance Retail, the country's largest retailer, has started stocking up for the coming Independence Day sales in August, which traditionally kicks off the festive shopping season every year, with inventory levels up by double digits, according to the source.
Economic Tailwinds
Easing of tensions in the Gulf has helped the rupee recover to about ₹94 per dollar from about ₹96 last month, while benchmark Brent crude retreated to $73.79 a barrel Friday from an average of $99 in the first week of June and $109 in the three months through May, the Economic Times reported. Companies expect a stronger rupee and lower oil prices to ease inflationary pressures, helping companies reduce prices by the festive season, further spurring consumer demand.
Executive Perspectives
"Retail sales are happening, indicating an improvement in consumption," said Atul Lall, managing director at Dixon Technologies, India's largest homegrown contract manufacturer. "Brands are very optimistic about the festive season."
Satish NS, chief executive officer at Haier India, said: "We can't ask for better days for the festive season as it is now. Commodity prices and supply bottlenecks will ease with the war getting over. While demand in the mid-to-premium end will remain strong, if El Nino concerns are mitigated, then even the rural market and entry level will pick up."
Devarajan Iyer, CEO at departmental store chain Lifestyle International, said consumption has remained steady since February, improving further in the June quarter. "So, there is no reason not to be bullish about the festive season. From November onwards, there is also the wedding season."
Next Milestone
Companies are expected to continue ramping up production through the core festive period from Navratri to Diwali, with inventory building ahead of Independence Day sales in August. The impact of monsoon rains and El Niño on rural demand remains a key factor to watch.
Sources:
