Native logic: Urban Company bets on Diwali launch of AC-purifier hybrid to scale consumer durables business

Subscribe to enjoy similar stories.BENGALURU: Urban Company Ltd plans to launch an air-conditioner-cum-air purifier ahead of Diwali this year, according to two people with direct knowledge of the matter, as the quick-services platform expands beyond its home and beauty services business and deepens its presence in its consumer durables vertical.Urban Company entered the consumer durables segment in October 2023 with the launch of its Native brand, starting with water purifiers. Since then, the company has added electronic door locks and is now looking to scale up with air-conditioner-cum air purifiers.“Urban Company can only make so much profit from its services business because that depends heavily on manpower and day-to-day operations.

By selling its own appliances, the company can build a business that scales faster and earns better margins, which is why it is expanding further into consumer durables under Native,” one of the two people said.India’s air-conditioner market is expanding rapidly but remains underpenetrated. Although average daily daytime highs in the plains of north and central India can range from 40°C to 45°C in the summer months of April to June, only about 7.8% of the households in the country own an AC, compared with higher adoption in markets such as Indonesia and China, pointing to strong growth potential.Industry volumes grew 20-25% to a record 12.5 million-13 million room ACs in FY25, according to Icra, as improving electricity access, easier financing and rising incomes pushed demand beyond large cities into smaller towns.