NEW DELHI: The Bureau of Energy Efficiency (BEE), a statutory body under the Ministry of Power, has deferred its plans to enforce energy labelling norms for ceiling fans—similar to refrigerators and air-conditioners—keeping the viral pandemic in view. A change in these norms would have had an impact on cost and price of the product.
“Fans are a common man’s product and hence, reasonably priced. A star rating would have meant an immediate cost increase by up to 10 per cent. Against the backdrop of job losses and pay cuts sinking in, the decision is a welcome move,” said Atul Jain, chairman of Indian Fans Manufacturers Association (IFMA).
Since the industry was informed about the star rating for fans earlier this year, manufacturers were ready with designs, but the lockdown led to an almost three-month production closure, he adds.
Originally slated to be implemented from July 1, 2020, the implementation of new norms have been postponed to January 1, 2022.
Jain, who is also the executive vice-president of Orient Electric, explained that the pricing of products is the biggest determinant for white goods sales in India and price hikes have a bearing on customer sentiment, while acknowledging that the new standard were help conserve energy and reduce carbon footprint.
After witnessing zero sales in April, the Rs 12,000 crore fan market has witnessed some pent-up demand in May.
“For Orient, we are seeing more sales for pedestal fans and overall, there is a gradual pick-up. However, we are yet to see any growth,” Jain noted. The size of the organised market stands close to Rs 7,500 crore and is expected to record a CAGR of 15 per cent over next five years.