Indian AC Volumes Surge over 25% Ahead of Festive Season

Indian consumer demand accelerated during the July-September quarter, with air conditioner shipment volumes surging more than 25 per cent year-on-year, according to manufacturers.

Sales of refrigerators and washing machines grew 13 to 14 per cent, while departmental store chain Lifestyle and market researcher Bizom tracked strong momentum across apparel and consumer goods.

Volume gains outpace price rises

Godrej Enterprises Group business head Kamal Nandi said festival demand expanded in double digits across Independence Day, Onam and Ganesh Chaturthi, noting that retail channels held over a month of stock at earlier prices to absorb recent hikes.

Branded apparel revenue climbed more than 12 per cent during the three-month stretch. Early discount events, including Independence Day promotions in August along with regional festivals such as Onam and Ganesh Chaturthi, generated double-digit retail turnover across regional hubs.

Department stores see tier-two traction

Department store operators recorded steady foot traffic, led by non-metro locations where discretionary purchasing held up better than in the largest cities. Retailers cleared previous seasonal lines without heavy discounting, entering the festive calendar with lean inventory.

“The July-September quarter was good with early double-digit sales growth and strong single-digit same-store growth,” said Devarajan Iyer, CEO at departmental store chain Lifestyle.

Lifestyle reported that inventory levels of older lines remained restricted, allowing fresh merchandise to command full retail margins across department store networks.

Grocery baskets show mixed momentum

Fast-moving consumer goods recorded a value expansion of roughly 9 per cent through the quarter, according to data from retail analytics provider Bizom. Packaged food categories outpaced home care and personal hygiene products by a wide margin.

Beverages, packaged groceries, confectionery, dairy products and commodities posted value gains between 10.8 per cent and 16.4 per cent from June through September. Personal care and household goods moved at a single-digit rate, showing that shoppers prioritized immediate food consumption over non-perishable refills.

Macro tailwinds and monsoon risks

Macroeconomic indicators provided support for consumption, with Indian gross domestic product expanding 7.8 per cent during the fiscal first quarter. Industrial output climbed 8 per cent year-on-year in August, improving on the 7.4 per cent recorded in July.

A 13 per cent overall monsoon deficit across 15 states and union territories presents the primary risk factor for agricultural income and late-season rural demand. Consumer goods companies are now tracking whether rural sales channels match urban momentum as Diwali distribution cycles close out in October.