EKL launches oxygen ACs

EKL Appliances (formerly Electrolux Kelvinator or EKL) last week launched a range of oxygen air conditioners. With improved technology and additional features, the company expects the new range to capture the Indian market in a major way.

Talking about the company's expectations in the next fiscal, Managing Director Anirudh Dhoot said, "Last year, we sold about 80,000 units; for the next fiscal our target is 120,000. We hope to sell in a major way in the northern region. Last year, our share of AC sales in this market was 32 per cent. We want to increase it to about 35 per cent in the next financial year. We are working on our distribution network and service centres to reach out to a larger segment of people in smaller towns. Rural markets are crucial for the whole Industry and not just air-conditioners." Dhoot was in the city to launch the oxygen ACs.

The consumer durables industry has seen a sharp growth in recent years. The domestic air-conditioner market has seen a growth rate of 20-25 per cent, compared to last year. With the launch of oxygen ACs, the company hopes to exceed its expected growth rate of over 50 per cent by the end of this year. Further, it expects a market share of 8 per cent in the AC segment.

Briefing on the product range, Vikas Muker, product head, said oxygen ACs are meant to give a clean, fresh breath of air to make you feel rejuvenated and energised. Both Split and Window ACs are coming with high-end Oxigenerator, Oxyguard and Aqua logic fins technology.

On the potential in the region, Madhav Nene, head-marketing, EKL Appliances, said, "Our marketing strategy has no bounds for this particular range of products. The whole of north, including Chandigarh, is a booming market for ACs. We are planning to launch our new range in other cities soon. We are sure to tap the markets here with great success."

He further said though the company would be focussing in urban markets in other parts of the country, in the north, it would also be focussing on smaller towns.

Electrolux broke even in January this year with its revenue for the month exceeding Rs 35 crore and its net profit at Rs 4.2 crore. The company incurred a net loss of Rs 15 crore for the July-December period. It attributed this to increased focus on other product categories like air-conditioners and washing machines, resizing workforce, production restructuring and retail expansion.

EKL earns 55-58 per cent from the sales of refrigerator, down from 75 per cent a year ago, with air-conditioners contributing 22-25 per cent and the rest contributed by washing machines and microwave ovens.