Jul 22, 2019 12:30 UTC

Welcome to this edition of our weekly program, the Iranian Market. As you may know, home appliances industry is one of the biggest industrial fields that generates added value for downstream industries and is defined as one of the accelerators of economic and industrial developments in all world countries and the Islamic Republic of Iran.

With this introduction, today we’re going to discuss Iran’s home appliances industry.

Home appliances industry is one of the industries that has a high share in the economic and financial circulation of countries because of the vast range of the usage of these products in the world.

The industry of home appliances include a diverse range of products such as television, refrigerator, freezer, washing machine, dish washer, vacuum cleaner, iron, juicer, and even different types of cook wares like non- stick pans, and steel pots.

This industry consists of three groups including, small kitchen utensils, big energy- consuming appliances, as well as non- electric kitchen appliances and tools.

Home appliances industry is categorized as an important industry which doesn’t need high technology.

As we said, Home Appliances Industry is one the biggest industrial fields that generates added value for downstream industries and is defined as one of the accelerators of the economic and industrial developments in all world countries and the Islamic Republic of Iran.

This industry not only fulfills a wide range of household needs, but it also fulfils the necessary needs of human in trade and administrative sectors. This industry has allocated a vast share of the market to itself.

The industry of home appliances in Iran is recognized as an attractive market for Iranian families because of the expansive need of families and young population of the Iranian society to this industry.

This industry is eighty years old in Iran.

Iran’s first home appliances factory was established in Tehran in 1937 with only eight workers. Within more than two decades, other factories started their activities and so the bases of this industry were founded in Iran in this way.

From those days of history until today, Iranian home appliances industry has gone through a vast rage of changes and developments.

Today in Iran almost 400 manufacturing units in the field of home appliances industry and about one hundred thousand workers and experts are active in manufacturing workshops and the network of after- sale services.

In Iran this industry presents a significant investment opportunity.

According to official figures and statistics,

In Iran there are more than 20 million households and it is estimated that the market value to furnish these with the required home appliances is 5.7 billion dollars.

Domestic production provides more than 60% of the markets needs, with imports covering the remainder.

Raw material inputs required, including steel, aluminum, copper, brass sheets and petrochemicals are produced locally.

In recent years, most intermediate parts such as electromotors and valves are being produced in Iran as well.

There are 23 Research and Development centers focused on production units and 6 industrial and mining centers licensed by Iran’s ministry of industry, mine and trade.

Dr. Habibollah Ansari, an activist who works in the field of home appliances industry says: “Currently, we have good markets in neighboring countries like Iraq, Afghanistan, Central Asia and some African countries. It is estimated that Iran’s industry of home appliances would soon be emerged as a pioneering industry in the economic growth of the country. Currently, some of our special products are exported to the countries which were once the cradle of such industries; for instance, Iranian- made sewing machines are exported to European countries and the consumers are pleased with the quality of the products.”

Investors in the Iranian home appliances industry try to reach the first rank in the region by increasing efficiency, decreasing the expenditures, producing different types of products, and presenting their goods with reasonable prices.

Home appliances industry is one of the seven strategic industries of Iran which its policy is establishing science- based companies with a look at exportation. In this way, some big factories and companies producing home appliances have launched centers for technological strategic researches and innovations in producing home appliances. This job is aimed at providing a scientific and technological environment by using lab equipment for the use of creative talented people in producing high quality goods.

There are several Iranian players in the home appliances industry. The most important manufacturers in each sector of the industry are Absal, Pars, and Pakshoma which produce coolers, Sinjer, Pars and Snowa, Emersun, Ectro Steel which produce washing machines, refrigerators, and freezers,

Pars Electric, Sanam Electronics, and Shahab producing television, Butane, and Iran Radiator which water heaters, etc.

The Islamic Republic of Iran exports its products to neighboring countries like Iraq, and Afghanistan, as well as Central Asia and some African and European countries.

AE/ME/SS

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