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Fans

The fan industry is highly competitive industry where every firm is trying to gain market

by introducing various attractive and innovative models, energy efficient products and

aggressive advertisement campaigns. Due to stiff competition, firms are not in position

to hike prices significantly to pass on the boost in raw material prices, which in turn

eroding profit margins.

As per Indian Fan Manufacturers Associations (IFMA) data, production has shown a

continuous increase from 79.5 lakhs nos in 2000-01 to 369.5 lakhs nos. in 2010-11

with a CAGR of 16.6%, which can be attributed to large population base and boom in

housing sector due to urbanization. During 2010-11 the production of fans has shown

relatively lower growth of 30.2% due to slower sluggishness in housing sector, as

compared to 33.7% growth in 2009-10. During April-December 2011 Industry recorded

negative growth of 3.7% in, as against healthy growth of 35.4% in the same period of

previous year. High rate of inflation, weak global demand, slower investment and

slowdown in real estate sector has contributed for negative growth.

Trend in Type-wise Production of Fans

(Lakhs Nos)

Type 2006-07

2007-08 2008-09 2009-10 2010-11 Apr-Dec2010 2011

Ceiling (No.)% in Total

135.875.7

159.276.6

165.978.1

213.775.3

267.472.4

184.972.9

185.475.9

TPW (No.)% In Total

28.515.9

32.815.8

31.314.7

48.817.2

70.319.0

48.218.9

40.416.5

Exhaust (No.)% In Total

11.86.6

13.16.3

13.16.2

18.16.4

24.66.7

16.906.7

15.86.5

Others (No.)

% In Total

3.2

1.8

2.6

1.3

2.0

1.0

3.2

1.1

7.2

1.9

3.8

1.5

2.6

1.1Total (No.)Total %

179.3100.0

207.8100.0

212.3100.0

283.8100.0

369.5100.0

253.7100.0

244.2100.0

Growth 19.5% 15.9% 2.2% 33.7% 30.2% 35.4% -3.7%

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Sales of fans of six major companies in the organized sector viz. Crompton greaves,

Orient, Usha, Khaitan, Bajaj and Polar together have displayed continuous increase

during 2001-02 to 2009-10. During this period, the sales of fans of these six

companies have increased from ` 711.1 crore in 2001-02 to ` 2,322.6 crore in2009-10, reflecting a CAGR of 16.0 %. The trend in sales of fans of these companies

is presented below:

Trend in sales of Fans of Six Companies

0 0 0 0 0 0 0 0 0 0 0135.8 75.7 28.5 15.9 11.8 6.6 3.2 1.8

179.3100

19.50%159.2

76.6 32.8 15.8 13.1 6.3 2.6 1.3

207.8100

15.90%165.9

78.1 31.3 14.7 13.1 6.2 2 1

212.3100

2.20%

213.775.3 48.8 17.2 18.1 6.4 3.2 1.1

283.8100

33.70%

267.4

72.4 70.3 19 24.6 6.7 7.2 1.9

369.5

10030.20%

2010

184.972.9 48.2 18.9 16.9 6.7 3.8 1.5

253.7100

35.40%

2011

185.475.9 40.4 16.5 15.8 6.5 2.6 1.1

244.2100

-3.70%Category 1Category 2Category 3Category 4

Chart Title

Type 2006-07 2007-08 2008-09 2009-10 2010-11 Apr-Dec

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Year Sales (` crore) Growth %2001-02 711.1 16.72002-03 742.7 4.4

2003-04 839.2 13.02004-05 946.7 12.8

2005-06 1108.0 17.0

2006-07 1394.4 25.82007-08 1687.0 21.0

2008-09 1857.0 10.1

2009-10 2322.6 25.1

2010-11* 2369.8Source: Annual ReportNote: * For the FY 2010-11, sales of five companies have been considered, as

data of Usha is not available.

Indian fan industry is exporting fans to various countries in the world. As per IFMA

data, after showing an impressive growth in the year 2003-04 and 2004-05, exports of

fans have dropped significantly in 2005-06. There was a smart recovery in 2006-07 but

again slipped in 2008-09. Export trend of fans from year 2002-03 is presented below.

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Fans Export Trend

Year Exports(Lakhs Nos.)

GrowthPercentage

2002 10.3 8.0

2003 15.4 49.5

2004 20.8 35.12005 17.8 14.4

2006 19.2 7.9

2007 19.0 1.0

2008 16.2 14.7

2009 16.3 0.62010 17.5 7.4

AprDec 2010 13.2 10.9

AprDec 2011 12.9 -2.3

0

500

1000

1500

2000

2500

Sales (` crore)

Growth %

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-10

0

10

20

30

40

50

60

Exports

Growth