Fans

The fan industry is highly competitive industry where every firm is trying to gain market
by introducing various attractive and innovative models, energy efficient products and
aggressive advertisement campaigns. Due to stiff competition, firms are not in position
to hike prices significantly to pass on the boost in raw material prices, which in turn
eroding profit margins.
As per Indian Fan Manufacturers Associations (IFMA) data, production has shown a
continuous increase from 79.5 lakhs nos in 2000-01 to 369.5 lakhs nos. in 2010-11
with a CAGR of 16.6%, which can be attributed to large population base and boom in
housing sector due to urbanization. During 2010-11 the production of fans has shown
relatively lower growth of 30.2% due to slower sluggishness in housing sector, as
compared to 33.7% growth in 2009-10. During April-December 2011 Industry recorded
negative growth of 3.7% in, as against healthy growth of 35.4% in the same period of
previous year. High rate of inflation, weak global demand, slower investment and
slowdown in real estate sector has contributed for negative growth.

Trend in Type-wise Production of Fans

(Lakhs Nos)

Type

2007-08

2008-09

2009-10

2010-11

Ceiling (No.)
% in Total

200607
135.8
75.7

159.2
76.6

165.9
78.1

213.7
75.3

267.4
72.4

Apr-Dec
2010
2011
184.9 185.4
72.9
75.9

TPW (No.)
% In Total

28.5
15.9

32.8
15.8

31.3
14.7

48.8
17.2

70.3
19.0

48.2
18.9

40.4
16.5

Exhaust (No.)
% In Total

11.8
6.6

13.1
6.3

13.1
6.2

18.1
6.4

24.6
6.7

16.90
6.7

15.8
6.5

Others (No.)
% In Total

3.2
1.8

2.6
1.3

2.0
1.0

3.2
1.1

7.2
1.9

3.8
1.5

2.6
1.1

Total (No.)
Total %

179.3
100.0

207.8
100.0

212.3
100.0

283.8
100.0

369.5
100.0

253.7
100.0

244.2
100.0

Growth

19.5%

15.9%

2.2%

33.7%

30.2%

35.4%

-3.7%

Ha char delete kar changala nahi yet

Chart Title
Type

2006-07

2007-08

2008-09

2009-10

2010-11

Apr-Dec

2011
2010

369.5
283.8
267.4
253.7
244.2
213.7
212.3
207.8
185.4
184.9
179.3
165.9
159.2
135.8
100
100
100
100
100
100
100
78.1
75.9
75.7
75.3
72.9
72.4
70.3
48.8
48.2
40.4
31.3
28.5
24.6
18.9
19
18.1
17.2
16.9
16.5
15.9
15.86.6
14.7
13.1
11.8
6.4
6.7
6.7
6.53.2
6.2
3.8
3.2
2.61.8
27.2
1.5
1.1
11.9
1.10
19.50%
15.90%
33.70%
30.20%
35.40%
0
076.6
032.8
015.8
013.1
06.3
02.6
01.3
0
02.20%
CategoryCategory
1
Category
2
Category
3
4

-3.70%

Sales of fans of six major companies in the organized sector viz. Crompton greaves,
Orient, Usha, Khaitan, Bajaj and Polar together have displayed continuous increase
during 2001-02 to 2009-10. During this period, the sales of fans of these six
companies have increased from ` 711.1 crore in 2001-02 to ` 2,322.6 crore in
2009-10, reflecting a CAGR of 16.0 %. The trend in sales of fans of these companies
is presented below:

Trend in sales of Fans of Six Companies

Year
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11*

Sales (` crore)
711.1
742.7
839.2
946.7
1108.0
1394.4
1687.0
1857.0
2322.6
2369.8

Growth %
16.7
4.4
13.0
12.8
17.0
25.8
21.0
10.1
25.1

Source: Annual Report

Note: * For the FY 2010-11, sales of five companies have been considered, as
data of Usha is not available.

Indian fan industry is exporting fans to various countries in the world. As per IFMA
data, after showing an impressive growth in the year 2003-04 and 2004-05, exports of
fans have dropped significantly in 2005-06. There was a smart recovery in 2006-07 but
again slipped in 2008-09. Export trend of fans from year 2002-03 is presented below.

2500

2000

1500
Sales (` crore)
1000

Growth %

500

Fans Export Trend

Year
2002
2003
2004
2005
2006
2007
2008
2009
2010
AprDec 2010
AprDec 2011

Exports
(Lakhs Nos.)

Growth
Percentage

10.3
15.4
20.8
17.8
19.2
19.0
16.2
16.3
17.5
13.2
12.9

8.0
49.5
35.1
14.4
7.9
1.0
14.7
0.6
7.4
10.9
-2.3

60
50
40
30
Exports
20
10
0
-10

Growth