Tailwind ahead for consumer durables sector during festival season

There are hopes of better offtake and margin gains

It’s all eyes on the consumer durables sector during the festival season after a weak Q1FY24 and Q2FY24 was impacted by an erratic monsoon. 

Traditionally, this period sees the highest number of purchases. Dealers and manufacturers are complaining about low business-to-consumer (B2C) off-take during the first half. A pickup in consumption demand would be welcome.

However, business-to-business (B2B) off-take has been reasonable. Companies like Havells, Blue Star, Voltas and Polycab have seen strong B2B volumes.

Some optimism is visible at the dealer level after a reasonably strong pick up of B2C in August. Inventories of items like non-rated fans have