'Air conditioner prices to go up in December'

Electrolux India plans to up distribution network

Home appliances major Electrolux India, the Indian subsidiary of the $18-billion Electrolux Group, expects prices of air conditioners to go up from December this year.

Speaking to Business Standard, Yadvinder Singh Uppal, senior manager, product group (air conditioner), Electrolux India, said that with the prices of steel and copper increasing in the last few months the prices of air conditioners is also expected to go up.

"Though it is too early to predict the percentage of the hike, the industry can not leave the prices untouched when the raw material prices are shooting up," Uppal said.

The company is also planning to launch floor standing air conditioners in 1.7 tonne and 3.4 tonne categories. "These products would be launched during Diwali. The 1.7 tonne air conditioner would be priced at Rs 60,000 and the 3.4 tonne air conditioner would be available at Rs 1 lakh," Uppal said.

Electrolux India is increasing its distribution network across the country. According to Uppal, the sales and service network would be increased to around 225 dealers from the present 170 dealers across the country by December this year.

"We would also be increasing the number of company showrooms from the existing 450 to around 700 during the same period," he said.

According to Uppal, the company is chalking out plans to open exclusive showrooms for air conditioners on the lines of the one in Kolkata.

"We have only one showroom exclusively meant to showcase the company's air conditioner range, and by the end of the fiscal we intend to have one in each major city across the country," Uppal said.

The company has launched two new models in its Oxigen air conditioner range in the 0.75 tonne and one tonne split air conditioner categories for customers in the Hyderabad market. While the 0.75 tonne spilt is priced at Rs 15,900 the one tonne split air conditioner in priced at Rs 18,900.

Electrolux has chalked out a major marketing and promotion strategy. The company plans to create extensive visibility at the point of purchase level through greater display of product on the shop floor and on-the-ground display of product range and offerings.

The 'Oxigen' range of air-conditioners has a distinctive appearance combined with state-of-the-art functions. With innovative technology, the new range is equipped with the 'Oxigenerator' and 'Oxiguard' that effectively removes odours, dust particles, smoke and inhibits virus and bacterial growth.