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    2022 summer sales could be 5-7% higher than pre-COVID levels: Vijay Sales

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    2022 summer sales could be 5-7% higher than pre-COVID levels: Vijay Sales


    As IMD warns of a possible heat wave in the north west, central and western parts of India in the next 4-5 days, CNBC-TV18 spoke to key retail players in the cooling appliance industry- Kamal Nandi, Executive VP & Business Head, Godrej Appliances, and Nilesh Gupta, Director, Vijay Sales, to understand what opportunities lie ahead.

    India Meteorological Department (IMD) has warned of a possible heat wave in the north west, central and western parts of India in the next 4-5 days.
    To understand what this could bring about in terms of opportunity to the cooling appliance sector, CNBC-TV18 spoke to Kamal Nandi, Executive VP and Business Head, Godrej Appliances and Nilesh Gupta, Director, Vijay Sales.
    Gupta affirmed that the month of March has turned out to be a bonus for the company. He shared that the company has been overwhelmed by the response that it has received ahead of the summer season. He explained that summer sales for 2022 could be 5-7 percent higher when compared to pre-COVID summer. He added that demand for laptops continue to be strong as companies and schools opt for a hybrid model.
    "Normally the summer season starts after Holi, but we saw the summer season picking up from the second week of March itself, and March has been very strong. In fact, we never expected this. It is turning out to be a bonus. We may see a slight upside of 5-7 percent summer sales over 2019," he shared.
    "Laptop still continues to be at the top of the priority because that's everybody’s need. But at the same time, now you have a hybrid model, although most of the companies have called all the team members to work from office but then there are many companies who are giving a hybrid model of two days option to work at home and schools also are doing a hybrid thing. So I think air conditioner will also play a part of it," he said.
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    Concurring with Gupta, Nandi of Godrej Appliances, said that demand has picked up across the country. He explained that March sales is in fact 10 percent higher than pre-COVID levels.
    "I think the season has picked up; demand has picked up for sure and we are seeing this across the country. Both the summers, people could not come out and do their purchases. So there is a pent-up demand, which is actually going to get consumed in this summer and that's why you see the uptick beginning right from the beginning of March. March clearly is showing a sign of growth over 2019, our expectation is about 10 percent," he said.
    Nandi expects to grow in the range of 10-15 percent in summer of 2022 over summer of 2019. He also highlighted that the soaring commodity costs that the industry has been grappling with stands at 27 percent vis-à-vis price hikes of 15 percent.
    "We expect April to do much better and if we are able to overcome the supply chain challenges, I think May also should be a good month this year over 2019. Our expectation is about 10-15 percent growth over 2019 this summer," he said.
    "The commodity hike has been very steep and if I compare it to the starting point of December 2020, it is already up by about 27 percent. So, to that extent, prices have not moved up in the market. There have been challenges because of demand, prices moved up only by 15 percent," he explained.
    Watch the video for the full interview.
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