Consumer durable firms aim to double AC sales this summer

Consumer durable firms aim to double AC sales this summer

Consumer durable firms aim to double AC sales this summer

South Korea-based LG, which has set a target of 50 to 70 per cent jump in AC sales this summer, said it has already earned Rs 800 crore in the last two months.The company, which introduced 16 AC models this year, had a sales of Rs 1,600 crore in 2009. It is expected to achieve a revenue of over Rs 2,500 crore this year.

Similarly, city-based Carrier India said it has seen a "significant" growth in AC sales this season from the same period last year.Though the company declined to disclose its sales value, it is expected to do better than its set target.

"Firstly, the onset of summer early this year is a contributing factor to the good growth in AC sales this year. We hope to do better than expected," Carrier India Director (Marketing and Strategy) Krishnan Sachdev said.

Besides, companies feel that high disposable income among customers coupled with the new offerings, including high star rated or energy efficient ones, are the growth drivers for the segment.

"Air conditioners are no longer a luxury item these days. It is a necessity now, thanks to the high disposable income and increased consumer spending," LG Electronics India Limited Business Group Head (AC) Ajay Bajaj said.According to Bajaj, the Indian AC market is estimated to be around 2.7 million units last year. It is expected to achieve a 50 per cent growth this year compared to the earlier 20-25 per cent growth rate, he said.
"Customers are shifting base to higher star rated ACs. Our strategy for bringing high star rated ones is helping us push the sales this year," he added.

Panasonic, which expanded its AC range this year, said it has already achieved a 400 per cent growth in the last two-three months. At present, AC business accounts around 25 per cent of the company's overall turnover.

"Till last year our product pipeline in the segment was not strong. This year we have widened our product range, catering to even the mass segment by introducing entry level products," Panasonic India Marketing Head Manish Sharma said.Samsung said it has recently invested around USD 10 million to double its AC production capacity to 1.2 million units. It expects to double its sales volume to around 1 million units this summer."The penetration of air conditioners in the market is still very small. That's why there is a huge potential for growth of this category," a Samsung spokesperson said.