WHITE GOODS INDUSTRY USER’S

PERSPECTIVE

WHIRLPOOL OF INDIA LTD

S NO. CONTENTS

1. • DESTINATION INDIA

2. • WHITE GOODS INDUSTRY & MARKET

3. • WHITE GOODS IND. GROWTH & STEEL REQ.

4. • ASV LINKAGE TO STEEL PRICES

5. • INDUSTRY TRENDS

6. • REQUEST ITEMS TO STEEL MANUFACTURERS

Destination India

India has among the

highest returns on foreign
investment
India is among the three
most attractive FDI
destinations in the world
US Department of Commerce

By 2032, India will be among

A T Kearney FDI Confidence Index
the three largest economies
2005
in the world

“India is a developed
country as far as
BRIC Report by Goldman Sachs,
October 2003
intellectual capital is
“We came to India for the concerned.”
costs, stayed for the quality
and are now investing for Jack Welch
innovation.” - Lee Scott, CEO Wal-Mart General Electric

Dan Scheinman, Cisco System Inc.

Business Week, August 2005 “…India, with a middle class of
50 million to 60 million people,
is ripe for growth…”
Indian Economy at an Inflection point of
Sustainable Growth

Trillion $ Economy … Rapid Growth

USA 13.5
12
JAPAN 4.5 10
9.2
GERMANY 2.9 8 8.1
6 6.1
CHINA 2.6 5.5
4.9
4
UK 2.4 3.2
2
FRANCE 2.2
0
ITALY 1.8
-2
SPAIN 1.2 -4 Max
CANADA 1.2 -6 Average

BRAZIL
-8 Min
1.1
-10
INDIA 1.0
India India India India India India
(64-74) (75-84) (85-94) (95-04) (05-06) (06-07)

• Huge investments in infrastructure

• Foreign Direct Investments in key sectors, Special Economic Zones
• Direct taxes, Import duties progressively lowered

India Where China Was in Mid-90’s

WHITE GOODS INDUSTRY AND MARKET : TRENDS
Changing consumer mindsets and Lifestyles

The
housewife The smart
discerning
multitasking woman
WPL Consumers: Shifts in Mindsets and Lifestyles
Design Excellence ….. Lead by Innovation
White Good Industry Growth
Industry Growth
8.00 7.8 WG Industry touches 7.8 M
7.00
5.97 units in 2008
Growth ( In Millions)

4.96
6.00
4.3 Refrigeration Industry growing
3.89
5.00
FC/ AC by 18.5 %
4.00
FF
3.00
DC
2.00
1.00
0.00
1
2004 2
2005 3
2006 4
2007 5
2008
Time Period

100% >351FF
• Salience Shift 90% 11% 15% 14% 15% 301-350FF
happening 80% 4%
12% 4% 4% 17%
70% 5% 271-
towards higher 60% 13% 14%
18% 8% 300LFF
capacities 50% 226-270L
40% 13%
FF
30% 65% 57% <=225 FF
54% 46%
20% 37%
10% >=226 DC
0%
185-225L
2004 2005 2006 2007 2008 DC
<180L DC
White Good Industry Steel requirements

WG Steel Requirement

HDG
CRCA 9%
28%
PPGI
24%

EGI / Finishes CR- RMP

23% 16%

Total Steel requirements for WG Industry in year’08 ~ 96 K MT

40 % of total requirement is imported from other countries

Not a single domestic player to cater requirements of EGI & special
color finishes

Increasing demand of thinner gauge material over a period of time
ASV Movement 2005-2008
Avg. sales value/ Unit ( White Good Ind.)

10800

10400
n
/Uit)

10000
R
e(IN

9600

9200
r
Pic

8800

8400

8000
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H R Price T rend

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T)

47000
R/ M

44000
41000
Price( IN

38000
35000
32000
29000
26000
23000
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WG Ind. forced to increase their product price on A/C of unprecented steel increases

Full impact of steel increases not getting passed to consumers

Future increases in ASV by WG Ind. will lead to de-accelerating growth
White Good Steel Industry ……… Trends & Challenges

Steel Trends

Shift towards thinner gauges to reduce weight

Stringent tolerance requirement to control finishing process variation.

Smooth and fine surface finish for end used appeal

Service center for supplying prepainted / CTL requirements

Technology support / Resource availability for developments

Challenges

Next level of technology to meet thinner gauges requirements

Complexity due to more design variants / SKU’s

Color finishes & Metal ( CFM) cost and availability
White Good Steel Industry ……… Request Way Forward

Price revision mechanism based on raw material cost , conversion cost

& profit margin

Technology next level to meet thinner gauges , tolerance & color finishes
requirement

Price Index Publication ( like CRU) for domestic steel prices and linkage
with global prices

Service center for supplying CTL requirements
 e r e .. W ith Pr ide ,
r y Home … E v ery wh
Eve c e … … !!!!!
r f or man
Passion and Pe