Indian Consumer Electronics Export Surge to Developed Markets

Companies like Havells, Dixon, Voltas, and Blue Star shift focus from neighbouring countries to target developed markets like the US and Europe

February 12, 2024

Havells India established a subsidiary in the US, signalling plans to distribute air conditioners in the American market

Dixon Technologies plans to increase Motorola smartphone exports in India, with a substantial portion earmarked for the US market

Voltas has secured export orders for frost-free refrigerators and dishwashers from Arçelik, a European appliance brand

Despite a historical flat trend, industry players expressed optimism about increased exports by focusing on higher value-addition in manufacturing, including components

Indian consumer electronics manufacturers are expanding their export horizons to developed markets like the US and Europe, a shift from their previous focus on neighbouring countries, the Middle East, or African nations. According to their December quarter earnings calls, companies such as Havells, Dixon, Voltas, and Blue Star have expressed their intentions to establish a presence in developed nations.

Havells India’s Chairman and Managing Director, Anil Rai Gupta, revealed that the company has formed a subsidiary in the US with plans to distribute air conditioners in the American market. This strategic move aims to create a foundation for exports in developed markets.

Dixon Technologies, a homegrown contract manufacturer, shared plans to scale up exports of Motorola smartphones produced in India, with a significant portion (28-30%) earmarked for the US. Dixon is also exploring export opportunities for lighting products in developed markets.

Tata-owned Voltas secured export orders for frost-free refrigerators and dishwashers from Arçelik, a European appliance brand selling under the Beko label. Other companies in the Indian electronics sector, including Blue Star, are also looking to increase their exports by focusing on higher value-addition in manufacturing, including components. Blue Star’s Managing Director, B Thiagarajan, outlined its strategy to design and make products for others in the US and European markets, tailoring them to meet local regulations, energy efficiency standards, and safety requirements.

Despite the relatively flat or marginally increased contribution of exports to sales for most consumer electronic companies in the past four to five years, the industry is optimistic about the potential for growth in developed markets. Samsung stands out as an exception, with export contribution to total India sales increasing from 21% in FY19 to 40% in FY23, driven by Samsung phones exported to various markets, including the US, UK, and South Korea.

Source: Economic Times

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