Crompton Greaves hopes for gains in fan, cooler segments as early summer boosts demand

File photo

Crompton Greaves expects to increase its market share in the fan and cooler categories, driven by expectations of an extended summer, CFO Kaleeswaran Arunachalam told Moneycontrol in an interview. The company has already begun stocking shelves as demand picks up early, anticipating a scorching summer ahead.

With February temperatures soaring unusually high, especially in Northern India, manufacturers and retailers of fans, air conditioners, refrigerators, and air coolers are gearing up early for another season of strong demand. Last year, the industry faced shortages of air conditioners and refrigerators as demand outstripped supply due to limited production and stock constraints. However, Crompton says that it is well-prepared for the summer, having stocked up on fans and air coolers, to prevent a repeat of last year’s supply challenges.

The company currently holds about a 28 per cent market share in the category.

"For us, business happens in Q4 and Q1. We are expecting a good summer, and temperatures have already started soaring. We have stocked up in anticipation of strong demand and are already seeing signs of it. Demand should peak around early April and continue until June, with billing typically starting from mid-March. Directionally, things look positive, and we anticipate a strong summer ahead," said Arunachalam, on the sidelines of the launch of Nucleus and Xtech, two new platforms for its premium fans category.

In the October-December quarter, the company saw  highest ever pre-season growth for its air coolers.

"Over the last three to four years, our air cooler business has grown from almost zero to making us one of India's top three players. We're already approaching ₹400 crore in revenue, reflecting the remarkable jump we've experienced. This isn’t just healthy double-digit growth—we're witnessing exceptionally strong momentum. Our appliances category as a whole has been growing at a CAGR of nearly 20-25 percent, and coolers are expected to outpace that," he added.

The leading consumer durables company identifies two key demand drivers: seasonal factors like summer or product replacement cycles, and consumer-driven demand. Its latest launch reflects the company's strategy to focus on  pull-based demand by introducing consumer-friendly innovations. Arunachalam emphasized that Nucleus and Xtech should address key consumer pain points, such as ensuring strong air delivery, offering convenience, and providing aesthetically smarter designs that cater to everyday needs.

Meanwhile, the company expects higher consumer spending, especially in the urban areas due to the tax cuts announced in the budget. It sees tax savings encourage buy-now-pay-later behaviour, increasing discretionary purchase.

In Q3, Crompton saw its consolidated revenue grow 5 per cent YOY at Rs 1,769 crore driven by strong sales of  pumps and small domestic appliances.