Top washing machine brands in India &

their market share, trends

Business
January 26, 2014

4.75 / 5 5

1/5

2/5

3/5

4/5

5/5

12 votes, 4.75 avg. rating (94% score)

The washing machine market in India has seen a healthy growth of CAGR 11% for the last
five years,and the industry believes that, given the Indias large diverse market and current
consumption levels makes great demand for washing machines during 2013-14 to 2017-18.
Currently the market size of washing machine industry is around Rs 5,000 crores.
When Videocon introduced washing machines in Indian market, they were highly priced and
seen as a luxury home appliance. But with the entrance of MNC players the prices of
washing machines were really come down and evolved to become an essential at home.
The rising income levels, fast growing working women population, improving living standards, rapid
urbanization, changing environmental dynamics and different payment options are driving the
growth of this segment.

Washing machine market in India

According to CRISIL, the washing machine market recorded a volume growth of 5 percent in
2012-13 selling 3.6 million units. While sales of semi-automatic grew by only 1 percent to
2.2 million units and fully automatic machines grew by 12 percent to 1.4 million units for the
same period.

Product Mix of Washing Machines in India

The above graph shows, the product mix is clearly shifting in favor of the fully automatic
washing machines from semi-automatic washing machines.
Top washing machine brands in India:
The Indian washing machine industry is clearly dominated by four players LG, Samsung,
Whirlpool and Videocon accounting for 75 % of overall market share. Godrej and IFB also
contains a prominent market share of 9 and 6 percent respectively.

Top washing machine brands Market Share in India 2012-13

Washing machine penetration in India

Despite the healthy growth, the penetration rate of washing machines in India is still very
low when compared with other emerging markets or developed countries.
According to DuPont Research September 2013, 8.8% of Indian households own a
washing machine, in that urban households have a higher penetration of 27.5% and rural
households is just about 0.6%.
According to ADI Media Publication, the northern region of India leads with 38 percent
market share, followed by southern region 30 percent, western region 27 percent, and
eastern region 5 percent.

Region Wise Sales Share in Washing Machines Industry, India

Analysis Source: The analysis of the article is based on CRISIL, Industry reports and
sales announcements by respective companies

Graphs Source: Graphs for data analysis prepared by Ravi Kishore. Copyright @
www.currentweek.com
Image Credits: Image designed by +Shyam Prasad Sayana Copy right @
www.currentweek.com

Home appliance maker IFB stands firm amid rush of

foreign brands like LG, Samsung, Whirlpool
Writankar Mukherjee, ET Bureau Jul 29, 2015, 12.10PM IST

Tags:

Panasonic|
LG India|
Kolkata|
IFB Industries|
Business Partnership|
Bosch-Siemens

(IFB Industries, which)

KOLKATA: A business started during Bengal's communist rule is still holding fort in the country's Rs
30,000 crore white goods market dominated by leading multinational brands. Kolkata-based IFB
Industries, which started its home appliances division back in 1991, has not once ceded its leadership
position in front-loading washing machines despite competition from top global brands such as LG,
Samsung, Whirlpool and its former partner Bosch, and remains the third largest microwave oven brand in
the country on the back of its first mover advantage in these segments, wide penetration in regional
markets and repeat purchases from existing customers.

IFB has around 39 per cent value share in front loading washing machines, ahead of LG India's 32.6 per
cent share, according to market tracker GfK's data for June that tracks sales at both multi-brand and

exclusive brand stores. IFB's volume share in the category is around 40 per cent. This is despite the firm's
paltry advertising and promotional spend of Rs 71 crore a year across its two businesses of home
appliances and fine blanking, while its multinational rivals such as LG, Samsung, Whirlpool, Haier
and Panasonic spend between Rs 200 crore and Rs 800 crore on marketing every year.
IFB withstood global competition when other home-grown players such as Videocon, Godrej and BPL
rapidly lost ground in home appliance and consumer electronics segments to multinationals. Industry
insiders attribute it to the IFB's superior products first launched under a partnership with Bosch-Siemens.
"IFB's brand pull is due to repeat purchases from first time customers and gains from word-of-mouth
publicity," said Pulkit Baid, director at eastern India's leading electronics retailer Great Eastern.
"The washing machine technology has not evolved unlike other categories," he said. Baid also said that
being one of the old home grown brands IFB has maintained good business relationship with regional
retail chains such as his own, Viveks and Adishwar. Founded in Kolkata in 1974 by Bijon Nag, who had
many years' experience in fine blanking in Germany and Switzerland, in collaboration with Heinrich
Schmid of Switzerland, IFB Industries was known as Indian Fine Blanks. It forayed into the home
appliances market in partnership with Bosch-Siemens in 1991, during the communist regime in West
Bengal. IFB does not have a well-defined management structure like the MNCs, which rival Videocon
recently implemented.
Its promoters, the Nag family of Kolkata, hold 75 per cent stake in the company. An email sent to IFB
Industries joint executive chairman and managing director Bikram Nag did not elicit any response till
Tuesday press time, while his office informed ETof his inability to participate in the story. IFB was once
declared sick, but had over the years fought back to profitability without hurting its market share. And of
late even some mutual funds have invested in the firm. IFB's appliance business increased gross sales by
24 per cent year on year to Rs 1,345 crore in 2014-15. Its sales of front loading washing machines
increased 28 per cent and that of microwave ovens rose 12 per cent, as per its annual report, much
ahead of the growth of the industry.
Enthused by the success in front loading washing machines, IFB has started commercial production of
top loading washing machines in the fourth quarter of 2014-15 and is now gunning for 10 per cent share
within two years, the annual report said. It has also recently ventured into air-conditioners and
refrigerators with premium products, which it plans to cross-sell to existing washing machine and
microwave consumer base.
Going ahead, industry insiders feel it might be difficult for IFB to retain its leadership position in
frontloading washing machines due to the aggression of competitors such as LG, Samsung and Bosch.
"IFB needs to beef up its presence in big retail chains like Croma and Reliance Digital where it has
negligible presence," a senior executive with a leading chain said. "The brand is dominant in entry-level
solo microwave ovens which may still sell the most, but has negligible margins and hence it needs to
focus on grill or convection microwave ovens which are fast emerging as top sellers," the executive said.