Orient Electric Anticipates Strong Revenue Growth in FY24 Due to Summer Surge in Fans and Coolers

As summer approaches with forecasts of unusually high temperatures, Orient Electric, a CK Birla Group company, is poised for significant revenue growth in FY24, driven by strong performance in its fans and coolers segments. Rakesh Khanna, MD & CEO of Orient Electric, shared his optimistic outlook, citing increased demand due to the anticipated heat.

Khanna noted that the company expects a “natural drift” in revenue growth from its fan segment, the housing market, and replacement products as summer sets in. Additionally, he highlighted that the lighting segment is also showing robust growth, particularly in the B2B sector.

The cooler segment, which faced challenges over the past three years due to the COVID-19 pandemic, is anticipated to experience a resurgence this year. Khanna pointed out that the summer season is expected to boost cooler sales significantly.

Early feedback from dealers and channel partners suggests positive trends, with growth already being observed in cooler sales. While fan sales were subdued in January, they are now picking up momentum.

Orient Electric, which operates in consumer durables, lighting, and switchgear, reported a revenue of ₹2,448 crore from operations in the fiscal year 2021-22. The company’s Electrical Consumer Durables (ECD) segment accounted for 73% of its business in FY22, with fans representing around 80% of this segment. The remaining 27% of revenue came from the Lighting and Switchgear (L&S) segment.

Khanna’s comments underscore the company’s expectation of a strong performance in the coming fiscal year, driven by increased consumer demand for cooling solutions and lighting products.