Voltas, Havells India Share Price: Market Reaction to BIS Certification Exemption

Market Performance

Shares of air conditioner and refrigerator-related companies, including Voltas and Havells India, witnessed an upward trend in early trading on March 19, 2025. This movement followed the government's decision to exempt specific components from the Bureau of Indian Standards (BIS) certification requirement.

Voltas surged 3.97% to an intraday high of Rs 1,525.75 on the NSE, leading the Nifty Consumer Durables index, which recorded a nearly 1% gain. Havells India increased by 2.47%, while Blue Star climbed by 3%. Godrej Industries saw a 1.01% rise to Rs 1,144.45.

Amber Enterprises, which produces room air conditioning (RAC) solutions and printed circuit boards (PCBs), rose by 2.42%, reaching an intraday high of Rs 6,794. Whirlpool recorded a 2.34% increase, reaching Rs 973 per share.

Government Decision on BIS Certification

The Department for Promotion of Industry and Internal Trade announced an exemption from BIS certification for essential air conditioning and refrigeration components, specifically grooved copper tubes and compressors of 2 tonnes and above. This move includes components imported from China and is expected to streamline supply chains.

The exemption aims to address potential shortages in the sector, especially in light of an anticipated increase in demand due to rising temperatures. Industry stakeholders had expressed concerns regarding possible supply disruptions, prompting the government to take action.

Sectoral Impact and Climate Considerations

The exemption aligns with broader efforts to manage supply chain constraints as India prepares for a hotter summer. Forecasts suggest temperatures will be higher than usual, increasing demand for cooling appliances.

Additionally, policymakers have been discussing adaptive measures in response to climate change. Chief Economic Advisor V. Anantha Nageswaran previously indicated that steps were being taken to mitigate the economic impact of extreme weather conditions.

Summary

The recent exemption of key air conditioner and refrigeration components from BIS certification has resulted in a positive reaction in the stock market, especially for companies in the consumer durables sector. This policy decision is expected to ease supply concerns, ensuring smoother availability of essential components. With rising temperatures projected, demand for cooling appliances may grow further in the coming months.