Manufacturers are worried as they have large stocks in place and due to lower demand, the inventory of dealers is also rising
In recent days, North India has seen unusual weather, with rainfalls resulting in lower-than-normal temperatures. The rising temperature has reduced sales of air conditioners, refrigerators, cold beverages, and ice cream. According to recent research, these items have suffered a 26% year-on-year (YoY) fall in sales since mid-March in the North.
Notably, North India accounts for more than half of all summer goods sales. Companies that manufacture these items are concerned because they have significant quantities on hand and their inventories are stacking up as a result of decreasing demand, according to the research.
The managing director of Blue Star is a large air-conditioning and home appliances firm, “The summer has not picked up at all in the North except for one week, impacting demand there”. He went on to say, “Dealers are saddled with stock in the North.”
Despite the fact that summer arrived earlier in February and there were heatwaves for several days last month in the eastern and central parts of the country, sales are down.
Beverage sales fell 26% year on year in April, according to media reports.
Amul has also experienced sales interruptions in ice cream, milkshakes, buttermilk, and other similar items. However, Amul’s MD stated that having a pan-India footprint helps our company.
It is worth noting that summers account for more than half of annual sales of items such as air conditioners, soft drinks, and ice cream. These categories are being harmed by the unusual weather conditions in the north.