Corona Virus Impact On Consumer Durable Industry
Health emergency is in force in China due to Corona virus outbreak, which has started impacting the industry there. In many cities, the plants of companies working in different sectors have been closed for a few days. This has severely disrupted the supply chain at the global level. In such a situation, due to Corona, the industries of many countries of the world has started to get affected, especially the countries whose domestic industry imports the necessary components from China. Experts believe that if the supply chain keeps disrupted in similar way, then the consumer durable industry of the country can have a big impact. Such speculations are also being made that in the coming days the prices of TV, AC, Fridge and Mobile may increase.
Inventories of companies are running out
In consumer durable segment, domestic companies import many necessary components for manufacturing from China. But there is no import due to shutting down of production. In such a situation, the inventory of companies is also getting weaker. According to brokerage house MK Global, big companies like Voltas, LG, Daikin have good inventory, but many small and medium companies do not have strong inventory. In such a situation, their inventory is now ending. If the situation remains the same, then those companies will also have to reduce production, due to which the increase in prices can be seen.
In the event of large companies weight and watch
Vijay Babu, Vice President of LG India Home Appliances says that till now, the situation is under control. Talking about delivering the products there is no delay till now. However, we keep an eye on the condition of corona virus and we are monitoring it closely. Other official of the company itself says that the dependence of other countries for our components is less than 15 percent, so the situation is under control.
Impact is visible on the industry
Corona’s side effects have also started appearing in India. In India, the prices of LED bulbs and lights are going to increase by 10 percent. The Electric Lamp and Component Manufacturers Association (ELCOMA) India says that the supply of electric components has been severely affected due to the shutdown in China. According to Sumit Padmakar Joshi, Vice President of ELCOMA, electronic components, especially the chip, are lacking on a large scale. 60 per cent of the LED bulbs manufactured in India have component (mechanical) from domestic supplies, while 30 per cent of which require electronic drivers, including chips, are imported from Chinese vendors. They are now lacking. Due to this, the prices of lighting products can increase 8 to 10 percent.
Mobile phone also affected
Recently iPhone maker company Apple has said that due to Corona virus, the supply of iPhone will be interrupted worldwide. The company says that the production of the company’s manufacturing partner in China has slowed down. The company has also said that due to reduced production, the financier of the company may remain weak in the current quarter. Please tell that domestic mobile companies also demand many important components from China. In such a situation, mobile production can also be affected in the country.