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The Indian refrigerator market wit-nessed high growth with estimated

sales at 7.3 million units in 2009-

10. This was a tremendous 23.7 percent

growth over the previous year. The de-

mand for refrigerators is continuously es-

calating due to the low penetration level

in the country and the increase in demandfrom the rural and semi urban areas. This

is supported by the hot extended summers,

quite favorable for the increase in the sales

of refrigerators. The market continues to

be dominated by ve brands LG, Samsung,

Whirlpool, Videocon Group, and Godrej,

which capture about 95 percent of the mar-

ket share.

LG again led the pack with the sale of 1.85

million units, valued at approximately

`1,720 crore. LG also held the top position

in direct cool and frost free segment with1,250,000 and 600,000 units, respectively.

The company catered mainly to the price

conscious segment.

Samsung and Whirlpool shared the second

position, each commanding a market share

of 18.49 percent. The next slot was shared

by Videocon Group and Godrej with a mar-

ket share of 16.44 percent each.

The direct cool segment which accounted

for 69.8 percent of the market continued

to be the volume driver. This segment wit-

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nessed a change in competition among the

ve players with LG in the number one

slot. The Videocon Group brands, Godrej,

Samsung, and Whirlpool all hovered in the

vicinity of sales at 1,000,000 unit each.

In the frost free segment LG was the

leader among all the brands. Samsungand Whirlpool were neck-to-neck and they

were in the vicinity of sales at 500,000

units each. Godrej commanded a share of

11.83 percent with Videocon Group follow-

ing at approximately 5 percent.

The refrigerator market is expected to

rake in more money this summer on the

back of rising temperature. With the ris-

ing mercury heating up expectations, sum-

mer launches of refrigerators have become

all the more special now. LG Electronics

launched 23 models, all new series of DCrefrigerators in 215 L, 235 L, and 270 L

with innovative features like freeze and

cook box, beauty and care box, base stand

with drawer among others. Samsung has

launched Frrrunch refrigerators range

with advanced moisture control cool-

ing technology, ensuring the freshness

of naturally fresh fruits and vegetables.

Whirlpool launched Protton 3D which is

fully automatic 3-door refrigerator for sy-

stematic and odor free storage of frozen

food, fresh food and vegetables separate-

ly. Videocon has plans to launch high-end

Refrigerators

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frost free refrigerator of capacities ranging

from 400 L to 710 L with many innovative

technologies. Godrej has planned to launch

more than 100 new SKUs this year and has

planned product launches, both in DC and

frost free segments.

Other aggressive players include BPL,

Haier, Hitachi, Panasonic, Siemens, Sharp,

and Toshiba. Haier has three new models

of BMR refrigerators, two new models of

side by side refrigerators, three new mod-

els of Amicura refrigerators, and four new

models of direct cool refrigerators. Pana-

sonic has plans to launch refrigerators in

top segment and also single door refrigera-

tors. Toshiba has plans to re-launch two

frost free models in the 380 L and 350 L

segment.

The makers may not be able to hold pric-

es with increase in CVD/ excise duty and

also increase in the prices of raw materials

like steel and fuel price, which has a direct

impact on both production and transporta-

tion cost.

Manufacturers are introducing energy ef-

cient products. Star labeled refrigerators

are expensive compared to unlabeled ones,

because the formers design requires use

of high-efciency compressors/motors andsuitably - sized heat exchangers. Hence,

the refrigerators have become costlier com-

pared to previous years. With increasing

consumer preference for high-end prod-

ucts, the average market price for refrig-

erators is going up.

Inverter technology is gradually making

its presence felt in the Indian refrigerator

market. Refrigerators using inverter tech-

nology run on minimal power overnight

and at other times when the fridge-freezer

is less used. This saves valuable energywhile reserving power for quickly freezing

items when needed.

The inverter compressor, temperature sen-

sors, and microprocessor technology work

together to help the inverter nely adjust

the compressor. This means it can operate

at the most appropriate power level. And it

takes into account the temperature inside

the fridge-freezer, to give the best chilling

and freezing results without wasting en-

ergy.

The frost-free segment of refrigerators has

gained immense popularity beyond the

traditional two-door refrigerators and now

offers sophisticated models. French door,

side-by-side, bottom-freezer models are

becoming popular. French-door bottom-

freezer models feature shelves that span

the entire interior with no center divider,

so items such as large platters, baking

pans, and cookie sheets can be accommo-

dated easily.

Bottom freezer refrigerators are conceptu-

alized on the premises that domestic refrig-

erator users hardly use the freezer as often

as they use the main compartment. Placing

the main section at eye level reduces the

number of times one bends to reach out

to vegetable tray, and other shelves lower

down in the compartment, to minimum.

This allows consumers to make the best use

of fresh vegetables as they will be more in-

clined to reach out to them and incorporate

them in their diet if they are at eye level.

This also allows them to have a better idea

of what food they have and can utilize.

Smaller under-counter refrigeration, wine

storage, and ice machines are also mak-

ing their presence felt as they are used not

only in the primary kitchen but in second-

ary kitchens, bar areas, outdoor kitchens,and even bedrooms non-CFC (non-chlrou-

orocarbons) refrigerators are also manu-

factured in India, but the demand for them

is less as its manufacturing requires high

initial-costs.

Consumers are also showing preference for

glass door refrigerators. The primary use

of refrigerators having glass doors is that

their replenishing becomes easier. Since

the contents stored are easily noticeable,

one can take a count of the things that

need to be stocked up. Since the doors areof glass they can be easily cleaned. These

types of refrigerators compliment any

room. Glass door refrigerators also help

eliminate the chances of food items going

bad. Any food item that has gone bad, that

show discoloration or fugal activity can be

easily picked and thrown out. This also

prevents the fungal activity from affecting

other food items.

Aesthetics are rated very high in consumer

preferences, particularly in the premium

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lot of emphasis on energy norms by

BEE. The labeling has been made

mandatory for frost free refrigera-

tors. The manufacturers have been

quick to respond and last year saw

many refrigerators qualifying the

5-star energy rating.

The most efcient models available

today are signicantly more energy

efcient, and still improving. Mod-

els with top- or bottom-mounted

freezers consume less energy than

side-by-side designs. Features like

through-the-door ice, chilled water,

or automatic ice-makers increase the

energy consumption, purchase price

and also greatly increase energy

use and are far more likely to needservice and repair. A ve-star refrig-

erator that costs more initially, but

costs less per year to operate due to

better construction and insulation.

While refrigerator makers give it

all to create a winning product line,

they also need to take a long-term

view on which refrigerants and in-

sulation-foam-blowing agents are

most environmentally acceptable

and practical. By changing some of

the components and adopting RoHS,which removes hazardous materials

such as lead, mercury, and cadmium,

from the manufacturing process, the

product becomes easier to recycle.

The Indian government has launched

a clear roadmap for phasing-out

hydro-chlorouorocarbons (HCFC)

used for air conditioning and re-

frigeration by 2030, in line with the

Montreal Protocol on substances

that deplete the ozone layer. HCFC-

22 is the predominant substance,used as a refrigerant in India. The

sectors using HCFCs in India are

experiencing signicant growth due

to substantial increase in economic

activity in the country and resul-

tant GDP growth and therefore the

consumption of HCFCs would grow

by 1015 percent annually for the

next decade. The most signicant

challenges in phasing out of HCFC

are the high cost and unpredict-

ablity of the availability of mature

range and is becoming an important

criteria in differentiating among

product offerings and therefore in

purchase decisions. In refrigerators,

these include new metallic nishes,

patterns, new and dual colors, exte-

rior creativity, new handle and body

designs, novel shapes, and dual col-

ors.

In the enhanced features, other than

aesthetics, healthy food preserva-

tion and hygiene are the key areas

receiving attention, with the market

ooded with varied technologies for

maintaining nutrition and freshness

of both cooked and uncooked food.

There are provisions for food items

which can be stored at differenttemperatures and humidity levels,

specic to the requirements. There

are technologies to generate positive

and negative ions to inactivate air-

borne mold spores and reduce odors

arising from propagation of mold;

care is taken to ensure that odor

from one food item does not travel

to the other; humidity is maintained

so that the food item stays fresh lon-

ger. Water and ice dispenser options

and hygiene features such as ioniz-

ers, silver ion coatings, antibacterial

carbon lters, and blue lights are

extensively offered.

Compartments with precise temper-

ature and humidity adjustments for

increasing food storage times are an-

other value-added feature offered by

many manufacturers. Various com-

partments and accessories such as

folding wine racks, sliding shelves,

and storage bins under door racks

allow better interior volume utiliza-

tion. The high-end refrigerators fea-ture multipurpose compartments

offering customized temperature

control, so consumers can make the

most of their refrigerator by convert-

ing the compartments to meet their

immediate needs. In some models,

the same compartment can act as

both refrigerator and freezer.

Refrigerator is likely to be one of the

largest single power consumers. In

the last few years, there has been a

and proven substitutes; access to

technology and funding, for meeting

the incremental costs of conversion;

and inadequate levels of awareness,

capacity and training.

Global standards of air conditioning

and refrigeration equipment are be-

ing brought to India. Indian Society

of Heating, Refrigerating and Air

Conditioning Engineers (ISHRAE),

and US-based Air Conditioning,

Heating, and Refrigeration Insti-

tute (AHRI) have taken up the task

of adapting the AHRI Standards to

suit Indian conditions.

AHRI has recently signed a tripar-

tite agreement with ISHRAE andthe Refrigeration and Air-Condi-

tioning Manufacturers Association

(RAMA) establishing the basis for

cooperation on the development and

harmonization of standards and lay-

ing the groundwork for cooperation

on performance certication pro-

grams in the future. The agreement

for two years grants the Indian com-

panies non-exclusive, irrevocable

licenses to use both current and

future AHRI standards, in whole or

in part, for the development and use

of Indian air-conditioning, heating,

and refrigeration equipment testing

and rating standards (IAS) in In-

dia. The intent is that standards de-

veloped, adopted, or modied under

this agreement will be adopted by

the Bureau of Indian Standards and

referenced by the Indian Bureau

of Energy Efciency, both of which

will ensure widespread use of those

standards throughout India.

The extended summer and delayedmonsoons assisted the manufac-

turers to log better numbers for

the industry in 2009-10. Consumer

sentiment is much more positive

this year. The economy is now on

a strong footing, investments are

back, employment is buoyant, and

salary increases are reportedly

higher. This augments well for the

refrigerator industry.

Research conducted in May 2010