NEW DELHI: Nearly 95 per cent of consumer electronics and appliances sold in India are produced locally, but dependence on China for raw materials still ranges between 25-70 per cent — which will be difficult to reduce overnight, said Consumer Electronics and Appliances Manufacturers Association (CEAMA).
While a substantive part of India’s supply chain has its roots in China, the entire industry had looked for ‘China+1’ policy from countries like Thailand, Vietnam and Korea as alternative destinations for components even before the call to boycott Chinese products gained steam.
“Even in the January-March quarter when China was going through the lockdown, we all had experienced component shortages from China and that triggered the strategy for China plus one (China+1). The dependence on China for components is still there and it varies in the range of 25-70 per cent from category to category,” CEAMA President Kamal Nandi said.
For instance, the dependence is least in the washing machine segment, while it is the highest for air conditioners. In the air conditioner segment, about 30 per cent is still imported.“This would have come down had there been no lockdown. But now, it will take time and we anticipate that it may take up to two years to develop an entire ecosystem of components in the country, Nandi said, adding that “in the next season, it would be drastically low by all the organised players.” In terms of sales, however, the anti-China rage is yet to impact demand of consumer durables, he pointed out.
Zero sourcing of chinese imports
As calls to boycott Chinese products gain momentum, kitchen appliances maker TTK Prestige, has decided to stop sourcing products from China completely by September this year. “Our last consignment will be arriving from China on September 30 and after that we will not place any fresh orders. We have decided to complete stop sourcing products from China,” said chairman T T Jagannathan. He added that the company will be focusing on becoming self-reliant and will be strongly pushing the Atmanirbhar Bharat scheme by sourcing raw materials for its products locally. The company will also explore markets in countries like Vietnam and Turkey as alternatives to Chinese market.