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Even with 28% GST on electric fans, players are betting high on energy efficient and premium fans
By: Bonafide Research & Market Pvt. Ltd.
By Anita Patil, Assistant Manager at Bonafide Research
The GST Act was passed in the Lok Sabha on 29th March, 2017, and came into effect from 1st July, 2017. The tax rate under GST are set at 0%, 5%, 12%, 18% and 28% for various goods and services, and almost 50% of goods & services comes under 18% tax rate. Electric fans of all types are in the tax slab of 28%, along with air conditioners. Before this, taxes on fans already came to about 25 to 26 per cent, which itself was too high. Under GST, fans have been kept in the same luxury bracket as air conditioner which is very unfair according to IFMA and industry players. The Indian Fan Manufacturer's Association (IFMA) has also made a representation to Union Finance Minister Arun Jaitely and to the GST Council to reconsider the new tax rate for fans.
According to recently published report of Bonafide Research "India Electric Fan Market Outlook, 2022" (http://bonafideresearch.com/
NEW PLAYERS ENTERING THE INDIAN FAN INDUSTRY
There are also new players (http://bonafideresearch.com/
INNOVATION HELPING PLAYERS TO DEMAND PREMIUM PRICE
Atomberg Technologies, founded by IIT Grads, launched Gorilla fans which work in a wide voltage range of 110-285V and has a life expectancy of around 20-25 years. The fans come with sleep timers, similar to air conditioners, and the remote control enables customers to do away with the regulators.Gorilla fans are designed in a way that they reduce the power consumption by more than 65 per cent. Their innovation won the Atomberg team a global award by UNIDO (United Nations) in the category of Energy Efficiency for 2016-2017 and a million-dollar funding in 2016. The company sells through online as well as modern retail channels in India. Initially, they are targeting the urban consumers as demand for energy efficient solutions are high in metro and tier-I cities. The company's corporate clients include Infosys, ITC, Aditya Birla Group, Hyatt Hotels, Indian Railways, IIT Bombay, IIIT Hyderabad, IDFC, Tata Power etc.
SWELLING ROLE OF E-COMMERCE IN FAN MARKET
E-commerce is slated to become a significant channel in India, yielding a considerable percentage of revenues for consumer durable manufacturers. Almost all the players have increased their product availability on the country's popular e-commerce platforms to augment their brand awareness. Usha International Ltd., which has strong offline distribution channel since years, now plans to increase its penetration and brand visibility by way of wider product display through comparatively new channels like e-commerce and modern retail (http://bonafideresearch.com/
Major companies operating in the electric fan market of India are Crompton Greaves Consumer Electricals Ltd., Usha International Ltd., Orient Electric Limited, Havells India Limited, Bajaj Electricals Limited, Khaitan Electricals Limited, Surya Roshni Limited, Anchor Electricals Pvt. Ltd., Polar Industries Ltd. and Luminous Power Technologies Limited.
Report:India Electric Fan Market Outlook, 2022 (http://bonafideresearch.com/
Base Year: 2016
Estimated Year: 2017
Forecast Year: 2022
Pages: 100, Figures: 44, Tables: 25
Bonafide Research & Marketing Pvt. Ltd.
Steven Thomas – Sales & Marketing Manager