Gas Appliances

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Information @ a Glance

  • Installation cost is a key factor when considering the future of gas in the domestic sector. As heating demand is decreasing (due to improved house insulation) the appliance and installation need to be competitive, especially because electricity is becoming a more attractive solution.
  • Most of the gas appliances manufacturing units exist in four major cities - Karachi, Lahore, Gujranwala and Sialkot. The gas appliances industry is a small-scale cottage industry with a few market leaders producing quality appliances. These few market leaders along with other small units have established themselves in the local market. However, Pakistan has the potential to expand in the international market by establishing new manufacturing units that produce export quality products.
  • Gas appliances is a requirement of every household, therefore the demand for these appliances is likely to increase in the local as well as the foreign market. Furthermore, only a small proportion of the market share is taken up by imported appliances, which reinforces the fact that local products have a higher demand in the domestic market.
  • In recent times, a few quality manufacturing units have been set up that open up the possibility of increasing exports in the near future. The government of Pakistan is paying attention towards this sector and in the recent budget has decreased the rate of custom duty on steel sheets, which is the basic raw material for gas appliances.
  • Gas appliances manufactured locally dominate the sales in the local markets, whereas very small quantities are being exported. Imported gas appliances have a small share in the local market, the reason being availability of cheap local gas appliances.
  • The gas appliances manufacturing industry of Pakistan is a small-scale cottage industry. It comprises mainly of small units and there are only a few units which have a significant market presence. These market leaders are producing gas appliances under trademarks of Corona, Ambassador, & Delite.
  • Total global trade in terms of imports of gas appliances was $6.394 billion in 2009. USA is the largest importing country with a share of 30.2% and a total value of $1.931 billion. USA is a rapidly growing market with high annual growth rate. Germany is the second largest importer in this category with imports of $529.590 million. France is the third largest importer with total imports of $496.905 million.
  • The basic raw material for the manufacturing of gas appliances is Mild Steel (MS) Sheet. The other raw materials are copper pipes, stainless steel sheet, knobs, silver, brass, glass wool, thermostats, ceramic plates, bakelite, glass & stove paint. Powder coating is also used in place of stove paint but stove paint is longer lasting.

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