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29-06-2024
Bureau Report + Agencies
NEW DELHI/ BENGALURU: Demand for beer in India is at a multi-year high and air conditioner sales are skyrocketing as the intense, unprecedented heat scorching parts of the country becomes a boon for some consumer businesses.
Temperatures in the Indian capital Delhi and the western state of Rajasthan soared to almost 50 degrees Celsius in recent weeks, with scientists saying the hot summer has become even more intense due to human-driven climate change. While rains lashed Delhi on Friday, many northern areas such as Punjab recorded, opens new tab temperatures above 40 C on Thursday.
Beer sales volume are expected to jump 10% this summer and demand is at its highest since the onset of the COVID-19 pandemic, said Vinod Giri of Brewers’ Association of India which represents leading beer makers Carlsberg, Anheuser-Busch InBev (ABI.BR), opens new tab and United Breweries (UBBW.NS), opens new tab. Beer in this scorching heat, Giri said, makes Indians “feel better without getting too high on alcohol.” The heat has also driven power demand to a record peak as more people seek ways to cool down. B. Thiagarajan, managing director at ACs-to-air purifier maker Blue Star (BLUS.NS), opens new tab, said he has not witnessed such strong sales for air conditioners in the more than 30 years he has worked in the industry.
It’s been a “mad rush … anything called air conditioner would have got sold,” he said.
The number of affluent people in India is rising rapidly, and Thiagarajan said overall air conditioner sales will grow 50% in the April-June summer months, outstripping the industry’s expected demand increase of 25% to 30%.
Other businesses are also enjoying a strong summer.
Quick delivery service Swiggy Instamart said it is seeing a sharp rise in orders for ice cream and cold beverages.
Walmart-owned (WMT.N), opens new tab Indian e-commerce website Flipkart said demand for top-end sunscreen products jumped 40% between February-May 2024 versus the previous year, with products such as sunscreen sticks proving particularly popular.
“Heatwaves made me use sunscreens very frequently, like, 3 to 4 times a day,” said S. Dinesh, 27, whose job demands him to stay out in the sun during the day but even as the heat pushes up demand for some online products, it is causing logistical challenges as more delivery workers fall ill due to the high temperatures, said Ajay Rao, CEO of Emiza, a logistics company which counts Flipkart and Mamaearth (HONA.NS), opens new tab among its customers.
“People are not able to actually cope with the outside temperatures,” he said.
Peak demand for power in India’s hot, arid northern plains hit a record on Monday, the government said as it continues to implement measures to meet high energy consumption, although the weeks’ long heatwave is forecast to abate soon.
The India Meteorological Department (IMD) has predicted above-normal temperatures for June in the northwest and central parts of the country, making it one of the longest heatwave spells.
Government data shows that there were nearly 25,000 cases of suspected heat stroke and 56 people lost their lives in the sweltering heat across the country from March-May.
India’s power ministry said demand for power at the peak time on Monday reached 89 gigawatt (GW), the highest ever for the northern region, adding that the strong demand, which has prevailed since May 17, was “challenging”.
