Kenstar, Intex, INALSA Hold Small Appliance Prices Ahead of Festive Season

⚡ Key Financial Takeaways

Kenstar, Intex, and INALSA will not raise small appliance prices in October, deferring decisions to November or January to protect festive demand.

Kenstar projects 70% overall growth in its small appliance business during the festive season, with air fryers seeing nearly 600% growth.

Large appliance manufacturers, including LG and Haier, are implementing price increases of 2-7% starting October 1 to offset rising commodity and freight costs.

The industry is accelerating the shift from China imports to local manufacturing, with Kenstar aiming for 40-50% Indian value addition in air fryers by next Diwali.

💡 Why It Matters

The decision by small appliance makers to absorb costs rather than raise prices signals a competitive strategy focused on market share retention during the high-volume festive season. This divergence from large appliance pricing trends highlights the different cost structures and consumer sensitivities within the home appliance sector. Additionally, the accelerated shift towards local manufacturing reduces dependency on Chinese imports, aligning with broader national goals for self-reliance in manufacturing.

Strategic Price Freeze for Small Appliances

Leading manufacturers of small home appliances, including Kenstar, Intex Technologies, and INALSA, have decided to hold off on further price increases ahead of the upcoming festive season. This strategic pause comes after these companies already raised prices twice earlier in the year. The decision is driven by a desire to protect sales volumes during the peak buying period, even as input costs continue to rise.

Keshav Bansal, Director at Intex Technologies, explained that most industry players became aware of impending raw material price hikes in mid-September. However, with October being a critical sales month, manufacturers have stocked up on inventory and are choosing to absorb higher costs rather than disrupt consumer demand. Intex has confirmed it will not disturb small home appliance prices effective from October and will reassess the situation in November.

Divergence from Large Appliance Strategy

This approach stands in stark contrast to the strategy adopted by large appliance makers. Companies such as LG Electronics India, Haier, and Super Plastronics Pvt Ltd (SPPL) are proceeding with price increases starting October 1 to offset sustained rises in commodity, plastic, and freight costs.

LG Electronics India plans to raise air-conditioner prices by 5-7%, while Haier will increase room AC prices by approximately 5% and LED TV and washing machine prices by 2-3%. SPPL is also planning a 7% increase in TV prices. For small appliance makers, however, protecting festive volumes remains the priority, particularly as consumers are highly responsive to pricing and promotional offers during this season.

Growth Projections and Air Fryer Boom

Despite the cost pressures, companies remain optimistic about festive demand. Kenstar expects around 70% growth in its overall small-appliance business during the festive season. Sunil Jain, CEO of Kenstar, highlighted that air fryers are a key driver, with the company seeing nearly 600% growth in this category during the festive period. Kenstar has completed its procurement for the festive period and has scheduled its next price revision for November 1.

INALSA, which is targeting around 20% festive-season growth, has also decided against an immediate price hike due to market sentiment. Jitendra Chauhan, CEO of INALSA, stated that the company is absorbing part of the cost pressure by optimizing overheads rather than passing the full increase to consumers. INALSA is now considering a price revision for January 1.

Shift Towards Local Manufacturing

The surge in demand for air fryers has also exposed the industry's heavy reliance on China. Kenstar currently sources around 80% of its air-fryer imports from China, with only 20% value addition in India. INALSA sources 70-75% of its air-fryer kits from China.

However, regulatory changes, including BIS norms, are accelerating the shift towards Completely Knocked Down (CKD) and Semi Knocked Down (SKD) imports and local assembly. Jain expects Kenstar's Indian value addition to rise to 40-50% by next Diwali. Chauhan anticipates the industry moving towards 80% domestic manufacturing over the next two to two-and-a-half years. INALSA is expanding its Sonipat facility and expects its own manufacturing to eventually account for around 70% of sales, although the transition is currently causing some supply delays.

🏛️ Background & Context

Small appliances include products such as air fryers, mixer grinders, hand blenders, irons, and other compact home appliances. The festive season is a peak period for consumer electronics and appliance sales in India. Rising input costs, including raw materials, commodities, and freight, have been a persistent challenge for manufacturers throughout the year. The transition from imports to local manufacturing is being driven by regulatory norms and the desire to reduce supply chain vulnerabilities.

👁️ What To Watch Next

Readers should watch for price revisions from Kenstar, Intex, and INALSA in November and January, respectively. The actual festive sales volumes will indicate whether the strategy of absorbing costs successfully protected market share. Additionally, the pace of local manufacturing expansion, particularly in air fryers, will be a key indicator of the industry's ability to mitigate supply chain risks and reduce dependence on China.