FDI Inflows to Commercial, Office and Household Equipments

Abstract:

There has been considerable growth in the FDI Inflows to Commercial, Office and Household Equipments. However there is still huge scope of investment for the foreign companies in the consumer durables segment.

FDI Inflows to Commercial, Office and Household Equipments-Glimpses

The FDI Inflows to Commercial, Office and Household Equipments has been phenomenal. With the liberalization of the Indian economy a number of foreign players were introduced to the Indian market.

The market offered huge potential for growth and the inflow of foreign direct investments (FDI) increased in leaps and bounds. Foreign players like LG, Sony, Samsung, Whirlpool, Daewoo, Aiwa, Kenwood, General Electrics, Haier, Hyundai, Murphy Richards, Moulinex, are dominating the consumer durables segment that form the bulk of Commercial, Office and Household Equipments sector. Previously, i.e. prior to the open market economy, only a few companies such as, Kelvinator, Godrej, Allwyn, and Voltas were the main players in this segment. The studies by the National Council for Applied Economic Research (NCAER) suggest that Indian consumer class is growing at a rapid pace.

Commercial, Office and Household Equipments-Classification

• Consumer Electronics include, VCD/DVD, music players, color televisions (CTV), camcorders, home theater systems, cameras, portable audio, Hi-Fi systems, etc.


• White Goods include, air conditioners, dishwashers, water heaters, geysers, washing machines, refrigerators, kitchen appliances, vacuum cleaners, microwaves, tumble dryer, non-kitchen appliances, built-in appliances, personal care products, etc.


• Plastic moulded Furniture


• Wood and Poly-Vinyl Composite Furniture


• Clocks and Watches


• Phones

FDI Inflows to Commercial, Office and Household Equipments-Scopes

• By the period 2007-2008 the consumer durables market is expected to grow at 10-15%
• Presently the Commercial, Office and Household Equipments market in India is nearly worth US$ 4.5 billions
• The sale of frost free refrigerators registered a growth of 17%
• With all this increase, still there is huge scope for development as the rural market is not penetrated enough

FDI Inflows to Commercial, Office and Household Equipments-Yearly

• In the year 2003, the number of approval was 103, out of which 36 were technical and 67 were financial, the amount of FDI approved was ` 11631.41 million and the percentage of contribution towards total FDI was 0.41 %


• In the year 2004, the number of approval was 70, out of which 27 were technical and 43 were financial, the amount of FDI approved was ` 9817.88 million and the percentage of contribution towards total FDI was 0.54 %

Last Updated on 4/23/2011