The shares of AC and Refrigerator companies, including Voltas, Blue Star, and Havells India gained in today’s trade after the government exempted critical components from mandatory BIS certification, to prevent supply shortages ahead of harsh summer in the country.
A BIS (Bureau of Indian Standards) certificate is required to ensure products meet Indian quality and safety standards, protecting consumers and promoting consumer confidence by verifying product reliability and safety.
What’s the News?
The Department for Promotion of Industry and Internal Trade (DPIIT) has lifted the requirement for BIS (Bureau of Indian Standards) certification of factories producing grooved copper tubes and AC compressors with a capacity of 2 tonnes or more, including those imported from China, to meet industry demand.
AC and refrigerator manufacturers earlier raised concerns about a potential severe shortage of products this summer due to the lack of BIS certification for their copper and compressor suppliers in China and neighboring countries. They noted that domestic production of these components is insufficient to meet the growing demand, especially with the early arrival of summer.
In response, the DPIIT has granted exemptions from BIS certification for imports of grooved copper tubes until June 30 and for AC compressors of 2 tonnes or more until February 10, 2026. Additionally, a circular issued on Monday stated that between January and March, the government will permit the industry to import copper tubes up to 25 percent of the total value imported in 2023-24.
As per Government regulations, brands must ensure that the factories supplying components for ACs and refrigerators, both domestically and internationally, have BIS approval.
AC & Refrigerator Stocks That Gained
As a result of the Government lifting BIS Certification requirements, Voltas Ltd gained 3.65 percent at Rs 1,531, Whirlpool Ltd surged 3.3 percent at Rs 982, Blue Star Ltd surged 3.15 percent at Rs 2,225, Amber Ltd rose 2.65 percent at Rs 6,809, and Havells India Ltd rose 2.47 percent at Rs 1,555.65 in today’s trading session.
Written By Adhvaitha Nayani
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