Indians battle intense heat with 'mad rush' for air conditioners, beer

United Breweries

28/06/2024 06:54

By Praveen Paramasivam
       BENGALURU, June 28 (Reuters) - 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 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  and United Breweries  UBBW.NS .
    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 , 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  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  among its customers. 
    "People are not able to actually cope with the outside
temperatures," he said.

 (Reporting by Praveen Paramasivam; Editing by Aditya Kalra and
Miral Fahmy)
 ((Praveen.Paramasivam@thomsonreuters.com; +91 867-525-3569;))