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Address by Mr. Atul Jain, Chairman Indian Fan Manufacturers Association

20th Annual General Meeting 18th September 2020

Industry today has adopted new strategies to do business. Fan has primarily been a distributor driven business with retail outlets, has now seen a new horizon of internet marketing and online sales. Today fan is no longer just a necessity, now it is also seen as an important part of Home décor.  Today consumers are looking at designer fans, energy efficient fans, and or all technologically advanced fans. The business has seen a paradigm shift in the last couple of years. Modernisation of the regulators, addressing noise issues and offering low electricity consumption fans have seen an increase in demand.

However, having said that there is a huge scope for the industry to invest in after sales service by providing company appointed installers, build relationship between the consumer and the brand and reduce reliance on the local electrician.

During these unprecedented times, Fans have emerged as warriors against Covid-19 pandemic. As per the ‘National Guidelines for Infection Prevention and Control in healthcare facilities’, issued by Ministry of Health and Family Welfare (MoHFW), Govt. of India in January 2020 - “use of air supply fans helps improve thermal comfort and maintain good ventilation even where windows or doors are closed.” Thus, fans are a cost-effective way to not only provide thermal comfort, but also improve air circulation, which has been established as a key intervention to prevent COVID-19 as per many international studies.

IFMA represents the interest of over 200 Indian manufacturing entities in the country and the largest representative body of branded electric fan manufacturers in India.  The fan industry today is proud of the fact that we have aligned ourselves with the vision and clarion call of our Hon’ble Prime Minister Shri. Narendra Modi of being ‘Atma Nirbhar’ and ‘Vocal for Local’. In fact, we are delighted by the fact that the manufacturing capacity for ceiling fans in the country today is close to 100% localized.

Fans are undoubtedly a ‘common mans’ product which is a basic necessity for the masses, having one of the highest levels of penetration in India today of approximately 74 % households across India, thus touching the lives of almost 100 crore citizens of India, especially in the rural India. IFMA has been making concerted efforts in increasing our footprint further to reach out to every household in India. I can proudly say that we are also amongst mass employment generators in the country with more than 10 lakh people being employed in the fan industry.

It is also important to note that we as an industry body have been recognized as an important stakeholder on regulatory matters, consistently representing the interest of our members in front of regulatory bodies such as the Bureau of Indian Standards, Bureau of Energy Efficiency and the Department for Promotion of Industry and Internal Trade. I would like to reiterate that IFMA is ever willing to work with the Government in furthering its policies and initiatives and in building a comprehensive ecosystem that supports mass scalability and commercial viability of production of fans. IFMA believes and support the Government and regulatory authorities to ensure that Indian consumers are not deprived of the latest global innovation in this sector.

The 20th Annual General Meeting & Conference on Accelerating Growth & Sustainability in the New Normal- Towards a Aatmanirbhar Fan Industry addressed on key success strategies and a roadmap for making India a hub for manufacturing fans and achieving self-reliance. The ensuing technical session also deliberated on how emerging trends in energy efficiency, smart devices, consumer preferences and regulatory ecosystem will present immense opportunities for Indian fan manufacturers to become self-reliant. IFMA intends to make fans a readily accessible commodity for everyone by increasing grassroot level penetration, especially in rural India.

To make this common man’s product easily accessible, IFMA strongly advocates lowering the GST rate to 5% on fans as this would not only help the industry to spur demand in the economy but would be a welcome move for the industry and also from a social welfare point of view. From a revenue collection standpoint too, it is important to note that a rate reduction will boost overall sales of this common man’s product, improve household penetration in rural areas and will thus promote overall GST compliance across the value chain thereby plugging any leakages, thus boosting revenue collection for the Government.

The Association had continued its active engagement with government bodies like Bureau of Energy Efficiency and Energy Efficiency Services Ltd. (EESL), a joint venture of PSU of Ministry of Power, Government of India to create a sustainable roadmap for development and promotion of energy efficient fans in the country. We had a very good meeting with the Director General BEE over video conference, and I am happy to share that the mandatory star labeling programme of BEE has been deferred to January 2022. The Association representing the organized fan industry is committed in improving the energy efficiency of its products to bring about a transformation in the fans market.

IFMA also had a very fruitful discussion with Shri Shailendra Singh, Add Secretary DPIIT. The members shared the challenges of the industry especially regarding import regulation, HSN Code reclassification and GST rate reduction.

The electric fan market in the country has usually been manufacturer driven over the years. There had not been much of initiatives in understanding the demand from the consumer and supply chain perspective and offer products accordingly. Hence the association initiated a market study on retailers and consumer outlook on electric fan in India. The study helped the fan manufacturing industry to optimise the production of fan variants as per the consumer needs.

To restrain infringements the association conducted thirty (30) raids in the domestic market through several IPR agencies during FY 2019-20. These raids have been successful in creating a panic amongst the manufacturers of duplicate products and reduced the flow of spurious products in the domestic market.

Friends, today, IFMA is one of the premium industry body of the nation. This has only been possible for the unconditional support and efforts of many people. Members have always been the driving force for the association, and we believe that with the support of members the association can achieve even greater heights.

Thank You

Atul Jain
18th September 2020