AC market heats up

With summer almost in, the heat of intense competition among the air-conditioner makers has begun to make its presence felt.

In order to have a major share in the northern region (comprising Punjab, Haryana and Chandigarh) home AC market, which is pegged at 8-10 per cent of the total Indian market, the companies offered discount as well as gifts at Coolex 2007, the Confederation of Indian Industry's (CII's) exclusive exposition on air conditioning and refrigeration, which concluded yesterday.

Over a dozen established brands showcased their range of refrigerators and air conditioners in the exhibition. Companies like Hitachi, Godrej, LG, Voltas, Fedders International, Daikin Airconditioning, Onida, Samsung, etc displayed their new products in the air conditioners and refrigerators segment.

According to the industry figure, about 1.5 million units (home ACs, including window and split), were sold last year in India in the organised sector. The contribution of the northern region was about 10 per cent.

In order to grab a major share in this attractive market, the AC manufacturers were seen vying with one another by introducing a slew of new products and coming out with attractive offers. Though the exact business the event generated could not be ascertained, officials were upbeat with the bookings received from the potential customers at the fair.

Samsung showcased four new models of ACs with Silver Nano technology. It displayed products like the one ton window AC, priced at Rs 22,990. Speaking to Business Standard, its marketing manager Sahil Mahajan said: "We have a 27 per cent market share in window ACs and 37 per cent in split segment. With the launch of these four new models we hope to grow by 25-30 per cent."

Hitachi, with the launch of VJ series airconditioning, is also expecting to grow by 50 per cent compared to last year.

Currently, its market share is 8-9 per cent in the northern region. Daikin Airconditioning, which deals in imported ACs, is expected to increase its sales by 50 per cent in this summer. Last year, they did a business of Rs 10 crore in the region. The companies are offering easy finance schemes to their customers besides offering free installation, stabiliser and many more attractive options.

Godrej, which introduced new ACs with invertor technology that saves 30 per cent less electricity compared to the traditional one, expects to grow by 30-40 per cent in the region. Voltas, whose current market share in the northern region is 19-20 per cent, is hopeful to grow by 50 per cent. It launched 10 new models in the fair.

Other major players like LG and Fedders also displayed their new range of air conditioners. The annual exhibition has been showcasing the latest product offerings since 1998.