Question

Q. Study the growth of Consumer Durables Industry in India. Take any four firms of the
industry and group them according to ownership structures.​

Answer 1

Answer:

With a predicted CAGR of 4.7 percent, the headset market in India is expected to generate US$ 77 million in sales by 2027. This growth will be fueled by consumers' increasing adoption of wireless headsets.

Classification of firms according to ownership structure.

• Microsoft - Company
• Wallmart- Company
• Maruti Suzuki- Partnership
• Model Mentor LLP- Limited Liability Partnership

Explanation:

The Ownership Structure-

Ownership structure refers to the business entity's legal structure, including but not limited to a corporation, limited liability company, partnership, limited partnership, or sole proprietorship.

The common types of Ownership structure are-

• Sole trader
• Company
• Partnership
• Limited Liability Partnership

The Consumer Durable Industry-

• Consumer durables are defined as consumer goods that last a long time and do not soon lose their utility. These products include, but are not limited to, technological goods, kitchen appliances, home furnishings, and recreational equipment.
• Global marketers are drawn to the Indian consumer durables market, which is largely divided into urban and rural areas. A sizable middle class, a sizable wealthy class, and a tiny economically deprived class make up the sector. India is viewed by multinational organisations as one of the primary markets from which future growth is likely to originate.

The Growth of the Indian Consumer Durable Industry-

• The market for appliances and consumer electronics, which was worth US$ 9.84 billion in 2021, is predicted to more than double to US$ 21.18 billion (about Rs. 1.48 lakh crore) by 2025.
• India had a 69 percent TV penetration rate in FY20, largely due to the DTH sector. By June 2021, there were 69.86 million active subscribers, up from 69.57 million in March 2021.
• In India, the markets for refrigerators, washing machines, and air conditioners were predicted to be worth, respectively, US$ 3.82 billion, US$ 8.43 billion, and US$ 3.84 billion in 2021
• To meet growing consumer demand, Lenovo stated in August 2021 that it is significantly increasing its domestic production capabilities in India across product categories, including PCs, laptops, and smartphones.
• Philips said in August 2021 that it would invest Rs. 300 crore (US$ 40.41 million) and hire 1,500 people in India. To grow production in India, the company disclosed plans to expand its operations in Pune.
• Godrej & Boyce announced their entry into the dishwashing business in July 2021 with the goal of gaining 15% market share by FY22. In addition to expanding to tier II cities, the corporation is concentrating on significant areas like Mumbai, Hyderabad, Bengaluru, and Delhi.
• A new manufacturing plant would be built at Sri City, in the Chittoor district of Andhra Pradesh, as part of an investment of Rs. 550 crore (US$ 73.45 million) by Blue Star Climatech, a wholly owned subsidiary of Blue Star, over the coming years.
• The government approved 14 businesses in July 2021 as part of the production-linked incentive (PLI) programme for IT gear. These businesses are anticipated to contribute to total production of over US$ 21.64 billion over the following four years.
• The government boosted the industry in June 2021 by extending the production-linked incentive (PLI) plan for large-scale electronics manufacturing by a year (until FY26).

Hence, from the above discussion we can say that the Indian Consumer Durables Industry is expected to grow wide in the near future.

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