IFMA AGM 2007-08 Press Release

PRESS RELEASE OF IFMA FOR THE 7TH AGM HELD ON 24TH SEPTEMBER 2007

The Seventh Annual General Meeting of the Indian Fan Manufacturers Association (IFMA) was held today at the Tata Steel Room, Paladian Lounge, 6 N S Road, Kolkata. The Indian Fan Manufacturers Association was formed in 1999 after the dissolution of the Fan Makers Association of India, a more than 3 decades old body.

Mr Sunil Wadhwa, Chairman of the Association and Managing Director of Usha International Limited, in his inaugural address in the AGM congratulated the members for achieving a turnover of Rs. 1800 crores by the organized sector of the Indian Fan Industry.

While the production grew close to 20% compared to the previous year, the exports witnessed a growth of 7%. In the domestic sector the growth has been 21%. In the first five months of the current financial year there is a further growth of 24%. This has been possible mainly due to

  • GDP growth.
  • Growth in housing / construction activity.
  • Higher disposable income and increasing spends on “durables “.
  • More villages getting electrified.
  • Implementation of uniform VAT in most of the states, which has helped the tax paying organized sector manufacturers.
  • IFMA members introducing competitively priced fans in the economy sector and offering these with manufacturers guarantee. This has taken a share from low quality unorganized sector fans.

Mr. Wadhwa mentioned that the growth on the export front had been severely affected. Exporting fans is not remunerative/ viable in absence of level playing field with some of the other countries, as export incentives do not fully cover the refund of the taxes paid on fans being exported. IFMA and its members have made necessary representations to DGFT and EEPC for increasing export incentives to a minimum of 14.5%. “Our Association believes that if we can work towards maintaining reasonable price competitiveness, there is no reason why exports of Indian ceiling fans in particular cannot double in a year” said Mr. Wadhwa.

It was expected that the growth would have been even higher had it not been for the menace of spurious branded fans available in the market. The Association continued to support several initiatives undertaken during the last year for the benefit of all customers. It appointed several agencies proficient in conducting IPR related raids. These were very successful in tracking spurious branded fan manufacturers.

IFMA is working closely with the Bureau of Indian Standards & the Bureau of Energy Efficiency to develop benchmarks for review, revision and reaffirmation of quality standards and energy efficiency ratings.

All these initiatives will provide consumers with necessary information for informed purchase and help the organized sector of the fan industry to scale to greater heights in future.

KOLKATA
24TH September 2007