Cold Chain Logistics (Insulated Panels): Cold chain infrastructure is a crucial component of agriculture and its related sectors. Perishable agricultural products, especially fresh produce like fruits and vegetables, require temperature-controlled supply chains to ensure effective storage, transportation, and distribution, prolonging the shelf life of food items such as grains, fruits, vegetables, and dairy products. Currently, agriculture and its related sectors contribute 18.3% to the GDP of China, with about 45.5% of the population employed. The Indian cold chain market size grew to INR *** billion in 2022, and it is projected to reach INR *** billion by 2028, exhibiting a CAGR of *** during 2023-2028, according to IMARC Group.
Refrigerators & Freezers: Over the years, refrigerators have become indispensable appliances in both households and commercial settings, providing a convenient and safe storage solution for food. Consumer choices for refrigerators increasingly emphasize a balance of price, quality, convenience, consistency, and innovation, seeking so-called “value options”. In 2023, LG Electronics India, India’s largest home appliance manufacturer, invested INR 2 billion to produce high-end side-by-side refrigerators as part of the “Make in India” initiative. Deepak Bansal, vice president of LG India, claimed that LG has become a leader in the double-door segment, commanding a 53% share in refrigerators. The new investment is expected to further strengthen its market leadership. Currently, numerous refrigerator manufacturers have introduced eco-friendly refrigerators that do not emit harmful compounds. Meanwhile, the energy consumption of refrigerators is getting more and more attention. On the other hand, due to revised standards implemented by Bureau of Energy Efficiency (BEE) on January 1, 2023, refrigerator prices have shown varying degrees of increases. Companies including Godrej Appliances, Haier, and Panasonic have indicated that consumer prices have risen by 2-5% due to the adoption of the new standards for different models. The new regulations also require energy rating labels for frost-free refrigerators and tighten labeling requirements. The refrigerator market size is estimated to grow at a CAGR of *** between 2023 and 2028.
Upholstered Furniture: The Indian furniture market size reached USD 18 billion in 2019, registering a year-on-year increase of 12%. However, the market contracted to USD 16.2 billion in 2020 due to the Covid-19 pandemic, while 2021 saw a 20% growth, including the release of pent-up demand from the subdued year and normal market growth. India’s furniture manufacturing has been predominantly driven by the unorganized segment, with only a few exceptions likeGodrej Interio, Spacewood, and Zuari Furniture. In fact, nearly 85% of furniture sold in the Indian market is manufactured in the unorganized sector. Currently, India is the 5th largest producer and 4th largest consumer of furniture globally. India’s furniture market was valued at USD *** billion in 2022. At an estimated CAGR of *** in the forecast period of 2023-2028, the market is projected to reach USD *** billion by 2026. The substantial growth is driven by factors such as rapid urbanization, increased home decoration and renovation, rising disposable incomes, changing lifestyles and consumer preference, and the rise of e-commerce. Despite the growth in India’s furniture industry, the country ranks 16th in furniture exports in the global market. The Indian furniture market is highly fragmented, with 80% of sales dominated by unorganized firms, posing challenges such as a lack of standardization, inconsistent pricing, limited access to technology and innovation, the absence of industry regulations, and limited export potential. In terms of logistics, particularly in the furniture industry, transport and logistics costs account for 6-8% of total manufacturing costs, compared to China’s 4%, making the industry uncompetitive. Regarding costs, the high Goods and Services Tax (GST) rates on furniture in India (12-18%) make it expensive for consumers, dampen demand, and encourage tax evasion. Furthermore, there are issues around availability of raw materials. In comparison to China, India’s raw material (mainly particleboard) costs are roughly 25% higher, making its furniture production about 27% more expensive than Chinese imports. These factors collectively impact the cost structure and international competitiveness of India’s furniture industry.
Automobile: India is becoming an increasingly important producer and consumer of automobiles globally. Over the past five years, India’s automobile production has shown an overall upward trend. In 2023, the total production of automobiles in India was *** units, marking a *** year-on-year increase, according to Society of Indian Automobile Manufacturers (SIAM). The automobile industry is one of the largest and most dynamic sectors in the country, encompassing a wide variety of vehicle types, including passenger vehicles, commercial vehicles, two wheelers, and three wheelers. The automobile industry contributes 7.1% of India’s GDP and 49% of its manufacturing GDP. With surpassing Japan as the world’s third-largest automobile market in 2022 and becoming the fourth-largest manufacturer of commercial vehicles in 2023, Indian automobile market size is expected to grow about 7%-10% in the fiscal year 2024. The Indian automobile industry has experienced robust development over the past two years, leading to increased investments from local and global carmakers. One of the most notable entrants is Tesla, which announced its plan to establish a new factory in India, with an annual capacity of 500,000 units, primarily focused on producing complete vehicle assemblies, powertrain units, power systems, battery technology, and other components. These technologies are sourced from the global supply chain, including companies like LG, CATL and BYD. Furthermore, as a significant exporter of automobiles, India’s auto exports grew *** in 2023 and are projected to grow at a CAGR of *** in the forecast period of 2023-2027.
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