Buoyed by the growth in residential sector in Gujarat, Daikin Air-conditioning India Pvt. Ltd., a 100 per cent subsidiary of Daikin Industries Ltd., Japan is eyeing growth in its market share in the state to 12 per cent.
While as of now the company sells about 25,000 units, 10 per cent of the 250,000 air-conditioner market in Gujarat, Daikin is looking to sell over 35,000 units in next fiscal 2012-13 even as the market grows to 300,000 per annum.
"We have planning to increase our channel partner network from 50 to 100 by next fiscal. Due to migration from rural areas to urban areas and growing purchasing power, Gujarat has been growing as far as air-conditioners are concerned. Considering this, we are also looking at growth in our market share from 10 per cent to 12 per cent next year," said Kanwal Jeet Jawa, Managing Director, Daikin Airconditioning India Pvt. Ltd.
In terms of revenue, Gujarat contributes about 10 per cent to Daikin's overall turnover of Rs 990 crore for the first nine months of fiscal 2011-12. The company expects to peg a turnover of Rs 1,250 crore for fiscal ended March 31, 2012.
Talking further about market segments for air-conditioners, Jawa said that while residential segment forms 70 per cent of its total sales, the rest 30 per cent comes from commercial. "However, the residential segment is growing faster at 20 per cent CAGR as compared to 12 per cent CAGR by commercial. We are looking at being top three players in the country for room air-conditioning," Jawa added.
Daikin recently launched energy efficient range of products for the residential, light commercial and commercial segments.
Meanwhile, the company recently hiked air-conditioner prices in the range of 7-12 per cent in various categories.