Sharp Corporation (SHCAY -2.58%) is hoping to create a culinary goldmine in Indian kitchens. According to The Times of India quoting Sharp President of Consumer Electronics Business Kishlay Ray, Sharp India is "expecting a growth of around 50%" from its new range of smart kitchen applicances.
Using wireless technology, the appliances connect and are controlled by wireless devices such as smartphones or tablets. A homeowner could switch on a dishwasher on or off while at work, for example, or program it to run at a time when energy use is more economical. A report by Research and Markets stated, "The Indian smart kitchen appliances market, which includes refrigerators, ovens, hoods, blenders, coffee makers, scales, cookers and dishwashers, is estimated to increase revenue at cumulative annual growth rate (CAGR) of 11.8%; unit shipments will increase at a CAGR of 10.5% during fiscal year 2019 to fiscal year 2026."
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Why India for IoT?
The Internet of Things (IoT) is considered one way to achieve better quality of life for citizens through energy efficiency. Smart appliances allow homeowners to better control energy use and avoid wastage.
NASSCOM is a not-for-profit industry association for Indian IT. In its report titled "IoT in India: The Next Big Wave," the association reports that "the IoT market in India is poised to reach $15 billion industry by 2020." The association also reports that private investors are supporting start-ups with "cumulative investment of $60 million since 2014."
IoT traction in India
One example of private investment is that of Tata Communications Limited, part of Tata Group. Tata is partnering with Kerlink, a global IoT solutions provider to build a national IoT network using "LoRa technology." According to a June press release by Kerlink, "Kerlink and TCTS will demonstrate to telecom carriers, start-up IoT connectivity providers, cities, and large multinationals how LoRa technology is one of the most responsive and reliable protocols for IoT connectivity."
It's not just private money that is being invested in IoT. The Indian government launched its "Digital India" initiative in 2015, and the nation is now "striving to be one of the early adopters of 5G technology." According to Chairman and CEO, KPMG in India, writing for the Indian Economic Times. "AI, Big Data, and the Internet of Things [IOT]; is expected to galvanise sectors that affect the well-being of every Indian," he said.
Disposable income on the rise
In India, disposable income is increasing in metro areas, and companies like Sharp benefit because electronics are heavyweights when it comes to consumer spending. A report by Boston Consulting Group expects "consumption expenditures to rise by a factor of three to reach $4 trillion by 2025."
Moreover, Corinne Abrams of the the Wall Street Journal found that "Indian women are beginning to get more control over personal and household financial decision-making." That's more good news for Sharp, because the kitchen is more often under the perview of the woman rather than the man in patriarchal society households.
Launching before Diwali is smart
Sharp will launch the new line of appliances to coincide with the Diwali festive season in October, when Indians tend to splurge on bigger-ticket items such as cars and home appliances. Acording to a YouGov survey, "43% of people polled said that they are likely to spend more come Diwali than they did last year."
The company is leveraging all channels both online and offline. Kishlay Ray stated that "Sharp India .. is aiming to achieve revenues of Rs 70 crores from festive sales in 2019...much of it from offline channels."
Of interest for potential investors with a penchant for the culinary arts, Sharp India is supplementing its marketing of the new line of kitchen appliances with live cooking demonstrations. I wonder what will be more in demand -- Sharp stock, the appliances, or the jalfrezi.
