India has observed a spike in demand for the refrigerator in the last few years. The refrigerator industry in India is most widely dispersing among home appliances. According to the Bureau of Energy Efficiency that is established to monitor the energy conservation act in India had laid down certain conditions for every refrigerator by awarding an energy efficiency star rating. The refrigerator with five starts indicating that the appliance is the most energy-efficient appliance and one star indicating that it will consume a lot of energy and is inefficient, so it ultimately highlights that more stars more savings. Refrigerator in the Indian consumer appliances market is not a new category, but its market is increasing with high growth rates and it is seen as a necessity product rather than a luxury. Weather conditions as hot and humid led consumers perturbed about food spoilage and leading to the growing demand for effective and efficient refrigerators. From rural and second-tier cities that include Ahmadabad, Kanpur, Patna, Dehradun, Pune among other along with third-tier cities such as Nashik, Madurai, Baroda among others are potential purchases of the refrigerator. This is due to increasing household income, rapid urbanization, rising number of nuclear families, improving the standard of living, credit availability, seasonal discounts along affordable prices are some growth factors for the refrigerator industry.

The government of India has introduced initiatives to uplift domestic manufacturing. With this India will begin witnessing increased production and assembling activities across products. BSH Hausgerate GmbH will bring its upcoming refrigerator factory in Chennai at 44-acre by 2021 this will be manufacturing refrigerators around 41,000 units. The target would be for more than 400,000 units by 2028. This sector is playing a vital role as a part of the Indian economy and employment to millions of people across India. Indian refrigerator market is divided into two products that include a direct cool refrigerator and a frost-free refrigerator. The direct cool refrigerator is more demanded by consumers in rural area group and middle-income group whereas frost-free refrigerators are selected by most people living in an urban area having a higher income. Manual defrosting is required in direct cool refrigerators and in frost-free it is not required.  

Government Focus on Improving Refrigerator Market

The Initiatives such as ‘Digital India’ and ‘Smart City’ projects by the Government of India have increased the demand for digital technology in the market. High priority has been attributed by the government of India to electronics hardware manufacturing. For promoting the initiative ‘Atmanirbhar Bharat’, Union Cabinet approved the scheme in 10 key sectors among them included electronics and white goods. The scheme is named the production-linked incentive (PLI) to uplift domestic manufacturing capabilities along with export in the country. Ministry of Electronics and Information Technology in union budget 2020-2021 has allocated $920 million which is further elaborated into revenue expenditure for $870 million and $50 million for capital expenditure. Additionally, the Government approved the 16 electronics companies’ applications for the spending of $5.44 billion under the PLI scheme. For encouraging the production of consumer electronics in India, the government has also decreased the custom duty on specific inputs that include refrigerators compressor parts, metals, cables, wires among others.  

Foreign Direct Investment  

Foreign direct investment is 100% allowed under the electronic system design and manufacturing sector. One of the Companies named BSH Hausgerate GmbH has entered the Indian refrigerator market with the introduction of series of four range of refrigerators. Approval as per the policies and regulatory frameworks of the government that includes relaxation of license rules and in multi-brand 51% foreign direct investment along with 100% in single-brand retails could fuel this market.  The Department for Promotion of Industry and Internal Trade had highlighted that from April 2000 to September 2020, Foreign Direct Investment (FDI) equity inflows were $2,941.91 million and exports from India of electronic goods at $5.5 billion from April 2020 to October 2020. In electronics in India, foreign direct investments will lead to a rise in cash flow, better technology along with different resources that will play a vital role in discovering the market to the fullest.

  Companies Coming with new launches Due to Impact Of COVID-19 

• Blue Star in February 2021 announced the launch of a new range of commercial refrigerator products and solutions that are suitable for storing vaccines. The ice line Refrigerator can maintain desired temperature (+2°C to +8°C) even without power for as long as 48 hours for the vaccination program. This would ensure that lower spoilage of vaccines without enough power.
• By the Ministry of Health and Family Welfare, Godrej recently got the tender for 11,8546 units of state-of-the-art vaccine refrigerators and deep freezers under the universal immunization programs. 

Companies in Indian Refrigerator Market & Offerings

• LG Electronics is considered a choice for many consumer electronics that includes refrigerators as well. The company offers single-door, double-door, side-by-side refrigerators, and mini-refrigerators. Refrigerators are used many times a day that is one of the reasons that the company provides Adjustable shelves, water, and ice dispensers, deodorizer, moisture control, thermostat control with built-in stabilizers in LG refrigerators. LG electronics providing energy-efficient refrigerators in India makes it a reliable brand.
• Whirlpool Refrigerators provide temperature optimization which is based on the analysis of food items and outside temperature. Additionally, its refrigerators offer uniform cooling with the help of Flexi-vents and anti-bacterial filters that ensures cold and fresh air in all sections of the fridge.
• Samsung Refrigerators provide more space and are made for all kinds of use. The refrigerators offer more storage capacity in comparison to others. Involvement of latest technology of temperature control for freezer and fridge is being preferred brand in India. 
• Videocon refrigerators have been coming in many colors with quality and durability in India. The company in India had brought in offering in refrigerators that provides LED light, accessible settings, extreme cooling, energy efficiency, customized glass shelves. 
• Panasonic refrigerator provides Econavi sensors that detect and analyzes ideal cooling condition and avoid wasting energy. Through uniform cooling functionality along with air filters keeps harmful organisms away.