Geyser sales gaining steam

Sales of household water heating systems, known as geysers, have increased this year thanks to the changing lifestyle of people living in urban and rural areas of Bangladesh, according to industry people.

And although there is no reliable data, they believe seasonal demand for geysers during the cold months from November to February has surged to about 120,000 units at present from 80,000 units in 2021.

Besides, the country's current market size for geysers is around Tk 80 crore, with around a dozen local companies retailing their own brands of the device, they said.

Geysers made by PRAN-RFL Group lead the market with a 35 percent share while Tropica branded ones see the second highest sales with a 15 percent share of the overall demand.

Geysers are made of simple technology and it takes just Tk 20-25 crore to establish a manufacturing facility with an annual production capacity of at least 35,000 to 40,000 units, they added.

"People's mindset has changed over time. Previously, geysers were considered a luxury item that were only necessary for the affluent class," said Kamruzzaman Kamal, director for marketing at PRAN-RFL.

But with increased local production, the device has become more affordable for middle-income groups in urban, semi-urban and even rural areas of the country.

Also, geysers provide hot water straight from the tap, making them highly convenient for uses such as showering.

As such, demand typically peaks during winter, and this year is no different as sales will likely increase in the days ahead, he added.

Kamal informed that locally manufactured geysers are priced at about Tk 5,000 to Tk 8,000 while imported ones cost Tk 9,000 to Tk 16,000.

Augustin Gomes, product manager of home appliances at Walton, said their geyser sales have remained the same since the November-December period of 2022, when 22,000 units were sold.

However, production costs are slightly higher this year as imported raw material prices have risen due to the devaluation of taka against the US dollar, he added.

Gomes also said local companies are now fully capable of catering to domestic demand as they manufacture quality products.

"We have 30-litre to 67-litre geysers with prices ranging from Tk 8,190 to Tk 15,850," he added.

Md Jishan, a technician in Dhaka's Uttara, said he has been installing four to five geysers per day since December 10 and hopes to see an increase in the tally within next week.

Seeking anonymity, a senior executive of a multinational company that distributes geysers made by a Chinese brand said already they have sold around 2,500 units since the start of winter this year.

The company is selling geysers with 30-litre, 40-litre and 50 litre capacities at prices between Tk 12,900 and Tk 15,900, he said.

According to him, the device offers significant utility while remaining within the purchasing capacity of middle-income groups.

However, sales in Bogura have not picked up as expected as people are less eager to spend amid the ongoing political tension centring the upcoming national election, local shopkeepers said.

There are about a dozen local companies that make geysers, including Walton, Gazi, Shameem, Ariston.

Meanwhile, Electro Mart locally manufactures and retails geysers of a Chinese brand called Konka.

Md Nurul Afser, deputy managing director of Electro Mart, said they produce quality products at reasonable prices.

"We are the only producer in the country using stainless steel inner tanks that are certified by the Bangladesh Standards and Testing Institution," he added.