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UP market hotbed for AC manufacturers

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Virendra Singh Rawat New Delhi/ Lucknow
Last Updated : Jan 20 2013 | 8:04 PM IST

Uttar Pradesh, which accounts for almost 10 per cent of the country’s retail air conditioner (AC) market, has caught the fancy of consumer electronics majors as summer 2011 approaches.

Prominent names among the AC segment, including Daikin, Hitachi and Godrej, are eyeing to increase their market share in the region with aggressive marketing, branding and expansion blueprints.

The fast growth in the Tier-II, -III and -IV towns in Uttar Pradesh and the large middle-class base is attracting these companies. The annual market for window and split AC in the state is estimated at about 300,000 units.

“We are spreading our dealership network in the state to cover all major pockets. Currently, we have 55 dealers and we will expand it to 70 by the end of next financial year,” Daikin Air-conditioning India Managing Director Kanwal Jeet Jawa told Business Standard here.

Daikin has a market share of about five per cent in state, which the company plans to ramp up to 15 per cent in the next three years. Daikin today unveiled its new range of 20 AC products for the residential and commercial segments carrying price range upward of Rs 22,000. While Daikin’s Japanese competitor Hitachi has a share of 11 per cent in the state, which it targets to increase to 15 per cent next year, Godrej Appliances, is hoping to grow by over 50 per cent.

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First Published: Mar 04 2011 | 12:58 AM IST

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