Fan makers see demand rising, but seek GST cut
CHENNAI : Fears that Covid-19 may spread through Air Conditioned or less ventilated spaces has resulted in a boost in the sales of pedestal and table fans, according to fan manufacturers. According to the Indian Fan Manufacturers Association (IFMA), pedestal and table fans usually account for 18 to 20 per cent of total revenue, while it increases to 25 per cent in peak summer. Now, however, demand for pedestal fans are on the rise.
The fan industry lost its peak business season due to the lockdown and witnessed a 35 per cent loss in annual sales. However, the markets have revived now and with the Indian Society of Heating, Refrigerating and Air Conditioning Engineers (ISHRAE) issuing safety guidelines to address concerns over possible transmission of the virus through heating, ventilation and air-conditioning (HVAC) systems, the fan industry sees an opportunity.
But high GST worries the sector. “at 18%, it is adversely impacting the industry as well as the entire supply chain. Also, fans improve ventilation, which has been established as a key intervention to prevent the spread Covid-19 and other viruses,” said Atul Jain, Chairman, IFMA.