New Delhi, Jan 5 (IBNS) With the mercury dipping and breaking records by the day in northern parts of India, the demand for heating appliances in the region has reportedly surged by about 35 per cent this winter season, according to a just concluded survey by apex industry body ASSOCHAM.
The demand for traditional heaters, halogen heaters, oil heaters, heat convectors, blowers, oil-filled radiators, geysers, emersion rods, gas operated heating systems and other such appliances has nearly doubled from about 20 per cent last year to over 35 per cent in the current year due to the recent onslaught of cold weather across North and Western parts of India, according to a market analysis cum survey of the heating appliances' market by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).
Interestingly, there is a supply deficit of about 20 per cent in terms of heating appliances almost across the entire region and this has also lead to rise in their prices due to sudden spurt in demand owing to continued cold spell across north, more so during the course of last 10 days.
The organised heating appliances' segment is likely to cross Rs 150 crore this season from over Rs 80 crore in the last season, as per ASSOCHAM estimates.
"Apart from the shortfall in supply of heating gadgets, the cost of branded products across varied makes has also spiked by about 15 per cent further adding to the woes of people seeking for heating options during one of the most severe winter seasons in recent memory," said ASSOCHAM Secretary General D S Rawat.
The demand for heating appliances might swell further with weather experts claiming that February and March will witness further dip in the temperatures. About 18 to 20 lakh pieces of room heaters across varied categories are likely to be sold out by end of the season, according to ASSOCHAM analysis.
During the course of last fortnight (December 25-January 3) ASSOCHAM representatives interacted with about 150 manufacturers, sales and marketing managers at electrical appliances' stores and shopkeepers in Amritsar, Chandigarh, Dehradun, Delhi-NCR, Gurgaon, Jaipur, Jammu, Kanpur, Lucknow, Patna and Srinagar to ascertain the market of heating appliance considering the decline in temperatures and persisting cold wave.
Almost all the electronic appliances' manufacturers said they had scaled up production of heating appliances by about 25 per cent over last year but still the demand surpassed their estimates due to sharp decrease in temperatures.
Reckoning that dipping mercury has been lucrative for their business they said there has been an unprecedented surge in demand during the course of past ten days and has surpassed what it was last year, they also said that shortage in supply will not be met this year as heaters are manufactured well in advance.
Most of the manufacturers said that due to input price inflation they had increased the prices of these appliances by nearly 15-20 per cent this season.
The branded heating appliances though costly but are selling like hot cakes, said the electronics' shopkeepers.
Majority of shopkeepers and electrical goods' dealers at prominent Lajpat Rai market, Bhagirath Palace and Daryaganj in Delhi said they have literally ran out of stock in terms of heating appliances as there is no supply from behind.
Interestingly many of these said they had faced a similar sort of a situation last year aswell and thus had advised the manufacturing companies to scale up their production and increase the supply of the heating appliances in wake of soaring demand.