Heatwave spurs surge in AC, beverage, ice cream output in India

New Delhi|Kalkata: Soft drink, air conditioner, refrigerator and ice cream manufacturers are taking action to increase production with the expectation that demand will increase in the coming weeks in parallel with rising temperatures. This comes after companies posted a 50% sales increase in the last 10 days as parts of India suffered an unusually scorching summer in the second half of April, sharply offsetting sluggish demand from earlier in the month due to unseasonal rains.

This recovery occurred despite companies increasing product prices by 8-15% and struggling with component supply disruptions.

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Moving After Calm

The second is linked to the West Asian conflict. Air conditioner and refrigerator sales increased by nearly 40% year-on-year, prompting companies to raise their April sales forecasts by 10-15% from previous flat growth expectations.

Air conditioning manufacturers say they are facing product shortages after previously halting production due to low demand, while beverage and ice cream companies are also using capacity added last year. Over the past two weeks, sales of cooling devices such as air conditioners, air coolers and refrigerators have increased by 40% year-on-year.
Also Read: Heatwave impact – India Inc adopts WFH safety steps“We are seeing very brisk sales across the country in April, a momentum that has reversed last year’s decline due to unexpected and persistent rains,” said Ravi Jaipuria, president of Varun Beverages, PepsiCo’s second-largest bottling partner outside the US. “Summer sales prospects remain strong thanks to the high capital expenditures and continuous execution we invested in last year.”

Bottling partners of Coca-Cola and PepsiCo announced new investments in capacity increase, distribution and cold chain infrastructure last year.