Voltas to grab big share of AC mkt

Voltas announced its strategy to grab 20 per cent of the 1.5 million domestic air-conditioner market in India last week. The firm has a 16 per cent market share currently, down from 40 per cent till the 1980s.

The strategy includes acquisitions, tapping markets in smaller cities as well as rural areas, launching room ACs at below Rs 10,000 and re-energising channel partners.

"We are expanding our base in Bhatinda, Sangrur, Ferozepur, Moga, Hoshiarpur, and rural areas in Punjab. We will increase our dealer network from 800 to 1,200 in the north and from 125 to 210 in Punjab. We will increase service franchisees from 160 to 200 in the north, out of the present 350 in India. As for Punjab, it would be about 50 from the current 30," said K J Jawa, senior vice-president, unitary products business group.

"We are targeting sales of 300,000 units in 2006-07, against 225,000 units in 2005-06, which had witnessed a growth rate of 46 per cent, surpassing the industry's growth of 22-23 per cent. We have sold 105,000 units in the north in this financial year and plan to sell 140,000 in the next. In Punjab we sold 13,000 units last year. This year we expect it to cross 22,500," he added.