Challenges posed by Covid-19 may recede after infections peak

For the economy, the year 2021 is likely to be better than the last year, provided there is no surge in the cases of Covid-19 infections. "The challenges we are now seeing in terms of the spread of Covid-19 cases in the country could recede after we cross the peak, which is expected around July," says Dr Mahesh Gupta, Chairman and Managing Director, Kent RO Systems, said in an exclusive interview with Bizz Buzz

What is the size of water purification industry and how was it growing?

As far as the Indian water purifier sector goes, till 90s there was no such industry that existed in India by the name of water purifiers. A handful brands were trying their fate in this sector by selling very conventional purifiers through door-to-door marketing.

But, who would have thought that in couple of years, Indian water purifier industry will become one of the most lucrative sectors for national and international consumer durable brands to peep in and have a pie of over Rs 3,500 crore industry.

Increasing industrialization coupled with growing consumer awareness regarding ill-effects of consuming poor-quality water will further continue to drive water purifiers market in India through next couple of years.

The primary growth facilitators of world water purifier market include rise in levels of disposable income of customers, increased incidences of waterborne diseases, industrial development leading to water pollution and rising concerns towards health. However, increasing demand for packaged drinking water acts as a restraining factor, limiting the growth to a certain extent. Low market penetration in rural areas is amongst the major challenges faced by the players due to lack of awareness towards health and sanitation.

What are the innovations done in the industry?

As 2020 raged with the pandemic, home appliances industry in our country, like many other sectors, has faced unprecedented challenges. As this fateful year ended and we prepare ourselves to live the 'new normal' way in 2021, the exciting news of the arrival of multiple Covid-19 vaccines is helping restore consumer's confidence which will lead to revival of demand for companies in home appliances sector.

At this point in time, four innovations that are expected to rule the Indian home appliances industry in 2021:

1. More energy-efficient appliances- Consumers of household appliances are looking for energy-efficient household appliances.

2. Integration of kitchen appliances- Integration of all the kitchen appliances is quite trendy these days. Especially in urban areas, families prefer built-in kitchen appliances, like a combination of gas and induction in one single cooktop.

3. Home Utility & Wellness Products to Become the Rage: As Work from home culture is prevalent these days, utilitarian products which complement the stay-at-home and do-things-yourself lifestyle are booming in demand. Tech products that make it easy for people to operate from their homes, will get a boost.

4. 'Go pure and clean': The global virus outbreak has not only made us more health-conscious, but also collectively raised our consciousness and commitment towards the environment, and for providing cleaner and greener solutions for planet Earth. For the Indian home appliance industry, the upcoming year ushers a great opportunity to come up with more product to promote clean & pure eating.

How Covid has impacted the industry?

The situation is very uncertain at the moment and we are in the midst of a deep crisis. More than one month has passed since the lockdown in many States was imposed. Only when the situation improves, we can expect businesses to open. Even when it opens, I have my serious doubts if it will be normal as the situation is very uncertain.

When it comes to consumer durables, we have to take it by each product. This is the summer season and it is the peak sales time for refrigerators, air conditioners and air coolers. The month of April has gone and there were no sales of ACs, refrigerators and air coolers. Perhaps television may pick up and you may expect some sales later, may be during the festive season, as people are and still will be watching television.

The second wave of Covid-19 impact has hit the overall industry and it is bad. All the industries are shut, and the first quarter has gone for that matter. Consumer durables has not taken the major brunt, but within consumer durables, the seasonal products have taken a major hit. The home appliance sector will take a massive beating due to the coronavirus-induced lockdown and the muted sales. Even after the curbs was lifted by government after September, social distancing norms and an overall fear of the pandemic kept people away from the stores for some time. Although we have received huge demand for products like fruit and vegetable cleaner, water purifier sales and disinfectants.

We expect this year 2021 to be better than the last year, provided there is no surge in the cases of Covid-19 infections. The challenges we are now seeing in terms of the spread of Covid-19 cases in the country could recede after we cross our peak, which is expected around July. This gives us some hope that the festive season will not be muted this year.

Well entrenched in the water purification business, Kent RO has big plans to make deep inroads into the air purification segment once the lockdown is lifted. At the same time, first priority should be finding a cure for the virus. If there is life, then there is livelihood. First build confidence and then talk about doing business.

How do you see the challenges before the industry?

We as an industry remain unaffected since we are in a kind of segment that continues to thrive as health was and will always remain a priority.

However, we do understand that the consumer sentiments are varied. While yes, most vertical brands and companies have been impacted with the pandemic but now there is a paradigm change as they have found alternative ways to reach their consumers.

Digital space has picked up immensely. Online sales as a channel is fast growing and will continue to witness more growth; as most brands have innovated and transformed the changing demands of the consumers. Also, those who have transformed and innovated are the ones who have survived and also on expansion mode. Those who have not been able to transform have been left out.

So, we have given the digital front a push to be up to date with the current demand and for a strong consumer connect. We will come with more ad campaigns and videos as they have always been a great connecting point with our consumers.

Any expectations from the govt?

With the central government pushing for local manufacturing and sourcing of components, the home appliances industry in India is set to become self-reliant in the coming years. India currently does not have a component ecosystem for home appliance makers to source from. Industry bodies such as CEAMA, along with the government are working towards developing that ecosystem.

The phased manufacturing programme and PLI scheme will help manufacturing activities in our sector in a big way, not just with finished goods, but components as well. A component ecosystem will be developed over the next five years. With finished goods, we are already 90-95 per cent self-reliant.