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With new star ratings for fans, Orient Electric launches new power-saving products

From July 2020, Bureau of Energy Efficiency (BEE) will make it mandatory for ceiling fans to have star ratings. Similar to products like air conditioners and refrigerators, fans would have also have ratings from one star to five star.

February 19, 2020 / 08:26 PM IST
 
 
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Ahead of the new mandatory star rating mechanism for fans, electrical goods firm Orient Electric has launched a new range of fans that is aimed at saving 50 percent energy as compared to ordinary fans.

From July 2020, Bureau of Energy Efficiency (BEE) will make it mandatory for ceiling fans to have star ratings. Similar to products like air conditioners and refrigerators, fans would have also have ratings from one star to five star.

The idea here is to promote energy efficiency. Higher the star rating, more is the power savings. For a fan to be rated from one star to five stars. This could also mean a price revision by 4-5 percent on an average.

In an interaction with Moneycontrol, Rakesh Khanna, MD & CEO, Orient Electric, said that while the five star fans will be value for money, how the market will respond is an area to watch out for.

Orient Electric's i-Series fans are BEE 5-star rated and operate silently. The new range includes three variants namely i-Float, i-Floral and Hector 500. The i-Float fan is IoT-enabled and can be operated via Orient Smart mobile app or with voice commands via Alexa and Google Assistant. The pricing for the Orient i-Series fans starts at Rs 2,850.

"Overall, about 6.5 crore fans are sold every year. But the inverter fan segment is in a takeoff phase right now. Going forward this could be a larger share of the overall pie," he added.

Fan service

Fan 1 Fan 2

Source: BEE Star Label website

As far as pricing is concerned, Khanna said that there may not be a significant change in pricing though some impact could be seen.

In Q3FY20, Orient Electric saw a 14 percent growth on a year-on-year basis in its electric consumer durables at Rs 325 crore. The company said that the fan industry is indicating a modest single digit-value growth in sell-out in Q3 whereas Orient Electric has shown a mid-teens value growth in same period.

Atul Jain, Executive Vice President, Orient Electric explained that while traditional induction-motor based fans consume 70-75W of electricity, Orient i-Series fans consume only 35W thus reducing power consumption by half.

With a modest assumption, Jain said that if all fans installed in India are replaced with i-Series fans, it will help the nation save 10.4 crore MWh of energy annually with cost saving of approximately Rs 67,780 crore.

M Saraswathy
M Saraswathy
first published: Feb 19, 2020 08:19 pm

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