As incomes rise, aspirations soar and urbanisation gathers pace, the Indian home is in the cross hairs of consumer appliances companies. Once considered a steady but unexciting corner of the consumer goods industry, India’s home appliances sector has now become one of the hottest investment themes in the country. The surge of dealmaking activity, from global private equity funds circling legacy brands to homegrown conglomerates launching new lines, shows a renewed recognition of the sector’s immense growth potential. Recent GST cuts have given an impetus to the sector where demand was slackening due to various reasons.Private equity’s growing appetite:  The latest development that has captured attention is Advent International’s move to acquire a controlling stake in Whirlpool of India. The American private equity group, known for its aggressive yet strategic bets in consumer-facing sectors, has emerged as the sole contender for the acquisition, according to an ET report. The interest from private equity heavyweights such as KKR, TPG, EQT and Bain Capital and consumer giants Havells and Reliance Industries earlier in the process reflects just how valuable Whirlpool’s position is seen to be in the evolving market.Whirlpool, a familiar brand in Indian homes since the late 1980s, has built a reputation for quality and reliability, particularly in refrigerators and washing machines. However, despite its early start, it has struggled to match the scale and innovation of its Korean and Chinese rivals, LG, Samsung and Haier. For a fund like Advent, the company presents a compelling turnaround story. It's an established brand with room to grow in a market that is expanding faster than any other major economy’s consumer durables segment.A sector in flux : India’s home appliances landscape has probably never seen so much activity in such a short span of time. In recent times, the market has been buzzing with deals and new brand launches. Reliance Industries has aggressively stepped in, launching its own Wyzr brand in 2024 and acquiring the iconic Kelvinator this year. The conglomerate had earlier tied up with BPL through a brand licensing deal, showing its intent to build a comprehensive home appliances portfolio.Meanwhile, Warburg Pincus and Sunil Mittal’s Bharti Enterprises are reportedly eyeing a significant stake in Haier’s India business, adding another layer of complexity to the sector’s competitive landscape. LG Electronics India’s stellar stock market debut, listing at a 50% premium, demonstrated investors’ faith in the long-term prospects of the industry’s leaders, of course, besides LG's own strong footing.At the same time, new-age players like Urban Company are seeking to integrate themselves deeper into the value chain. After years of providing home repair and maintenance services, the startup is now exploring manufacturing, beginning with air conditioners under its ‘Native’ brand. Bajaj Electricals has acquired the Morphy Richards brand rights for India and neighbouring markets, aiming to strengthen its product portfolio in the premium and mid-range segments.A market poised for explosive growth: The surge in investment and acquisition activity is rooted in the sector’s compelling fundamentals. According to EY, India’s consumer goods market is the fastest-growing among major economies and is expected to nearly double to Rs 3 lakh crore by 2029. Several structural tailwinds are driving this momentum, including rising disposable incomes, deeper rural electrification, expanding urbanisation, and the rapid spread of e-commerce and organised retail.The most striking trend is the increasing demand from Tier 2 and Tier 3 cities, where aspirations are converging with affordability. Consumers in these markets are shifting from basic appliances to smarter, energy-efficient products that offer better value and design. For companies, this opens up vast new consumer segments beyond the traditional urban strongholds......Read more at:https://economictimes.indiatimes.com/industry/cons-products/electronics/indian-home-is-becoming-a-new-battleground-for-reliance-samsung-whirlpool-lg-and-other-consumer-electronics/articleshow/125220387.cms? (ICE MUMBAI)

Fonte notizia: Economic Times