Manufacturers of consumer goods, such as electronics and two-wheelers, plan to increase production of entry-level products following income tax benefits in the budget. These benefits are expected to boost demand for mass market items that have been sluggish in recent years due to inflationary pressures. The government's tax relief measures aim to enhance consumer spending power.
In the third round of the scheme's online application process, the government received 38 applications. Following a comprehensive review, 18 new companies were provisionally selected, including 10 manufacturers of AC components and 8 LED light manufacturers, with a combined investment commitment of Rs2,299 crore.
Reliance Retail experienced a 7% sales growth in the fiscal third quarter due to festive and wedding season demand. The company improved profitability through streamlined operations and productivity enhancements. Revenue reached ₹79,595 crore, with a net profit of ₹3,458 crore. Reliance opened 779 new stores and saw strong growth across various retail categories.
"We, over a period of time, need to reduce the taxes. We need to reduce our tariffs so that really, our manufacturers can become competitive. We have a large base, and really we should be manufacturing for the world," said CEAMA President Sunil Vachani.
Online electronics sales are booming in India. Quick commerce platforms are delivering appliances fast. Consumers are comfortable buying large items online now. Online sales grew from 32% to 34% this year. This represents an ₹11,000 crore shift. Smartphones still dominate online sales. However, other electronics are gaining traction.
LG Electronics India has filed for an IPO to offload 10.18 crore shares, aiming to raise $1.8 billion. Parent company LG Electronics Inc. will sell its stake. The move follows Hyundai's recent Indian IPO. LG plans to invest ₹5,000 crore in a third Indian factory and encourage supplier localization.
Moksha Group will acquire Bengaluru-based Arzooo's technology platform and its various intellectual property assets and trademarks. The deal comes months after the company's unsuccessful attempts to raise capital or merge with bigger competitors.
Major electronics companies like Samsung, Apple, and Whirlpool are importing less, marking a potential first-time occurrence. This shift is attributed to the 'Make in India' initiative promoting local manufacturing and component sourcing. While mobile phone localisation is steadily increasing, home appliances have achieved significant local sourcing.
Samsung Electronics and its main workers' union in South Korea have agreed on a wage increase. The increase is 5.1%. The deal also includes more holidays and bonus points. These points can be used to buy Samsung products. The union members will vote on the deal. The voting will continue for one week.
Sault, a new consumer electronics company, is set to significantly increase its sales volume by FY25. Focusing on tier-2 towns, the brand plans to expand its reach within western India and eventually target southern markets. Sault will incorporate in-house manufacturing for certain products while continuing partnerships for others, aiming for nationwide expansion and exploring digital sales channels.
Samsung India Electronics' revenue grew by a mere 4% in FY24, reaching Rs 102,626 crore, marking its slowest growth in eight years. This slowdown, largely attributed to a stagnant smartphone market and heightened competition, is believed to be behind recent layoffs and cost-cutting measures.
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