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    Usha International bullish on demand to achieve growth in fan sales

    Synopsis

    Demand for fans has been increasing in the rural markets and small towns mainly due to the migration of labourers to their native places in the wake of the COVID-19 pandemic and an improvement of the living standard of people in these areas, an official said.

    usha-fansAgencies
    According to industry estimates, around 50 lakh fans are sold every month in the country.
    After witnessing a 20 per cent growth in sales during the post-lockdown months, leading fan manufacturer Usha International is expecting to continue with a similar momentum in its turnover for the next few months as demand for the electric product rises in the summer season, an official said on Wednesday.

    Demand for fans has been increasing in the rural markets and small towns mainly due to the migration of labourers to their native places in the wake of the COVID-19 pandemic and an improvement of the living standard of people in these areas, he said.

    "We are witnessing a rise in demand from all the markets with the onset of summer and a recovery in the economy," Usha president (electric fans, heaters, pumps) Rohit Mathur told PTI.

    He claimed that the company has reported a 20 per cent

    growth in sales in the post-lockdown months and expects that the trend will continue.

    "The company hopes it will get enough opportunity in the next 3-4 months to boost sales which will help sustain positive growth momentum in the next financial year.

    "Demand from the rural markets has been consistently growing after the lockdown restrictions were withdrawn. This was due to the reverse migration and the awareness and preference among people about established and trusted brands," Mathur said.

    The change in lifestyle and aspiration of people in Tier II and III cities and rural parts of the country can be attributed to the rise in demand for fans, he said.

    During the 'unlock' period, the company had launched eight products in different categories, and the fan segment accounts for about 45 per cent of its annual revenue, the official said.

    According to industry estimates, around 50 lakh fans are sold every month in the country.

    He said the fan manufacturer has taken a digital initiative to boost its turnover and the share of e-commerce channel in sales has almost doubled, as compared to that in the pre-COVID times.

    "We expect the contribution of online sales will increase further in FY 2021-22, though substantial revenue will come from the traditional channel," Mathur said.

    He said steps announced in the budget will help the economy recover from the COVID-19 crisis, and an exemption of duty on steel and copper scrap up to March 2022 will be useful in controlling the rise of consumer goods prices to some extent.

    This will also help boost demand for fans in the summer season, he added.


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