Replacement Demand Is Making a Comeback

The next leg of growth may not come from new customers. It may come from existing ones replacing old products. Across categories like passenger vehicles, appliances, cables and electrical equipment, ageing assets are creating a steady replacement cycle. Unlike discretionary demand, replacement demand tends to be more resilient and predictable. Companies like $HAVELLS, $POLYCAB, $VOLTAS, $BLUESTARCO and $MARUTI could quietly benefit if this trend strengthens over the next few quarters.