India has a huge middle class population with rising income levels and growing aspirations. This, along with easy availability of consumer finance, will drive the demand for consumer durables. In the medium term, demand for Colour Televisions (CTVs) and Air Conditioners (ACs) are expected to continue to grow in double digits, while refrigerators and washing machines are likely to record a moderate growth of 5-10 per cent. CTV prices are expected to decline marginally, while prices of white goods will remain stable or increase marginally due to rising input costs.

As per a survey conducted by Credit Rating Information Services of India Ltd. (CRISIL) the trends in selected consumer durable goods are:

Air Conditioners: The demand for ACs is expected to grow stupendously at a compounded rate of 20 per cent during 2003-04 to 2005-06.

Refrigerators: After a flat growth in 2003-04, the industry grew by 10 per cent Year-on-Year during April-December 2004. The aggressive focus by Korean MNCs (particularly on the frost-free segment) will result in an 8-10 per cent growth in the medium term in 2005-06.

Colour Televisions: CTV demand surged by 21 per cent Year-on-Year during April-December 2004. It crossed 6 million units, and is expected to grow by 10-15 per cent in the medium term in 2005-06.

Substantial growth of 30-35 percent is expected in the flat CTV segment (up from about 25 per cent in 2004-05).

Washing Machines: The washing machines segment is expected to end the year at about 1.4-1.5 million units. Along with this it is expected to grow by 5 per cent in the medium term.