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Consumer electronics shares gain as import of ACs with refrigerants banned

IFB Industries, Blue Star, Johnson Controls-Hitachi Air Conditioning India, Voltas and Whirpool of India were up in the range of 2 per cent to 6 per cent on the BSE

Amber Enterprises | Buzzing stocks

SI Reporter  |  Mumbai 

Voltas, AC

Shares of consumer electronics companies rallied up to 15 per cent intra-day at the bourses on Friday after the government banned import of air conditioners with refrigerants.

India surged 15 per cent to hit a 52-week high of Rs 2,300 on the BSE. At 10:38 am, the stock was trading 5 per cent higher at Rs 2,102, as compared to 0.44 per cent rise in the S&P BSE Sensex. The company is a market leader in Indian Room Air Conditioner (RAC) industry and air conditioning industry for mobile application such as railways, metros, buses etc.

IFB Industries, Blue Star, Johnson Controls-Hitachi Air Conditioning India, Voltas and Whirpool of India were up in the range of 2 per cent to 6 per cent on the BSE.

According to a PTI report, the government on Thursday banned imports of air conditioners with refrigerants with a view to promote domestic manufacturing and cut imports of non essential items.

"Import policy of air conditioners with refrigerants …is amended from free to prohibited," directorate general of foreign trade said in a notification. CLICK HERE TO READ RELEASE

“Currently around 30 per cent of Finished RAC are being Imported in India which is valued at Rs 4,200 to Rs 4,500 crore in FY2019. The equal values of components are being imported in India with respect to Room Air Conditioners. Estimating the current industry growth & moderately developed component eco-system currently in India for RAC industry, the Rs 9,000 crore worth of Imports is expected to reach Rs 2.5x-3.0x of current levels in FY25E,” said in investor presentation.

Various initiatives under consideration by the government under Atmanirbhar Bharat will help boost the local manufacturing. We believe the component industry eco-system will be created to support domestic manufacturing & reduce dependence on imports, the company said.

The China + 1 strategy is firming up, not only in the Indian market but also globally. This has opened up domestic as well as huge export opportunities and we have already started receiving enquiries for manufacturing of RAC & various components from companies across the globe, it said.

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First Published: Fri, October 16 2020. 11:06 IST