Starting 1st Jan’23, ceiling fans have come under the ambit of mandatory star labelling, as per the revised Bureau of Energy Efficiency (BEE) norms.
This BEE labelling helps save energy of minimum 30% for one-star rated fans to over 50% for five-star rated fans. Under this mandate, manufacturers have to display the star ratings on their fans.
This in turn means that fan makers will have no option but to increase the fan prices to offset the additional costs they will have to incur on account of modifications required in non-star rated fans to make them more efficient and compliant with the new star ratings. The price hike is expected to be in the range of 7-10% collectively.
The immediate knee-jerk reaction would be fall in demand wherein the unorganized sector will gain but once the price hike settles down, demand is expected to return.
The sector is showing a mixed response on the Street; the market leader in fans, Crompton Greaves Consumer, rose around 2% to Rs.343, Orient Electric too rose 2%, Havells and Bajaj Electricals are in the red around 1.5%.