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Heatwave Fuels Sales Surge for Cooling Products
29 Apr
Summary
- Soft drink, AC, and ice cream sales surged 50% in ten days.
- Companies raise production despite price hikes and supply issues.
- Sales projections revised upward due to accelerating demand.
Makers of soft drinks, air conditioners, refrigerators, and ice cream are significantly increasing production in anticipation of rising consumer demand. This strategic move follows a substantial 50% sales surge over the past ten days, driven by unseasonably hot weather in many parts of India during the latter half of April.
The robust sales performance has occurred even as companies implemented price hikes of 8-15% and contended with component supply disruptions, partly linked to the West Asian conflict. Sales for air conditioners and refrigerators have seen a year-on-year increase of approximately 40%.
Companies have consequently revised their April sales projections upward by 10-15%, reversing earlier expectations of flat growth. Some air conditioner manufacturers are experiencing product shortages due to previous manufacturing halts. Meanwhile, beverage and ice cream companies are leveraging capacity additions made last year.
This surge in demand marks a significant reversal from a sluggish start to April, which was affected by unseasonal rains. Executives expressed optimism about continued strong summer sales, supported by recent capital expenditures aimed at expanding capacity and enhancing distribution networks.
