Heatwave spurs surge in AC, beverage, ice cream output in India News Air Insight

New Delhi|Kolkata: Makers of soft drinks, air-conditioners, refrigerators and ice cream are moving to raise production on expectations that demand will accelerate in the coming weeks in line with soaring temperatures. This follows the companies reaping a 50% sales surge in the past 10 days as several parts of India reeled under an unusually scorching summer in the second half of April, sharply offsetting sluggish demand in the early part of the month due to unseasonal rains.

The rebound is despite firms effecting 8-15% product price hikes and battling component supply disruptions.

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Brisk After Lull

The latter are tied to the West Asian conflict. AC and refrigerator sales are up about 40% year-on-year, prompting companies to lift April sales projections by 10-15%, from earlier expectations of flat growth.

AC makers said they are facing product shortages after halting manufacturing previously due to tepid demand, while beverage and ice cream companies are tapping capacity added last year. Sales of cooling appliances such as ACs, air coolers, and refrigerators climbed 40% year-on-year in the past fortnight.

Also Read: Heatwave impact – India Inc adopts WFH, safety steps“We are seeing very brisk sales in April across the country; the momentum has reversed last year’s decline which was because of unexpected and continuous rains,” said Ravi Jaipuria, chairman, Varun Beverages, PepsiCo’s second largest bottling partner outside the US. “Summer sales expectations remain robust, riding on higher capex which we had invested in last year and relentless execution.”

The bottling partners of Coca-Cola and PepsiCo had announced fresh investments last year on capacity expansion, distribution, and cold chain infrastructure.