AC, ice cream sales melt with onset of monsoon

Sales of air-conditioners and ice creams in northern India took a beating in May with showers bringing down the temperatures. While the May sales of air-conditioners (ACs) in northern India witnessed 15 per cent dip over April, the branded ice cream market also saw 5 to 7 per cent dip in sales over April, industry sources said.

"Normally, AC sales in the month of May in northern India are at least 20 per cent higher than April. Because of rains, the AC sales in May have only grown marginally over April," a Samsung executive said. For the first four months, Samsung claims 32 per cent growth in AC sales. The decline in the growth percentage of monthly sales only means that new consumers, who were looking at making their purchase decision for AC, postponed it for a couple of weeks and the June figures will reflect that, according to sources.

Overall, the AC market has seen 44.6 per cent growth in the first four months of 2007 over the same period last year with 4,57,413 AC units sold, according to the ORG data. The branded AC market is projected to sell over two million units or Rs 3,600 crore in sales in 2007.

According to the latest ORG data, LG continued to lead the AC market share with 29 per cent followed by Samsung (16.7 per cent) and Voltas (10.9 per cent).

Even the Rs 850 crore branded ice cream market is set to register 15-18 per cent growth this summer, the sources said.

"North India accounts for about 48 per cent of the total branded ice cream market that is dominated by Amul brand. Due to rains, the growth in sales registered 5 to 7 per cent dip over the April sales, but now sales are on expected lines," a senior executive from Amul said.

On an all-India basis, Amul from Gujarat Cooperative Milk Marketing Federation (GCMMF) claims a 37 per cent market share in the branded ice cream market in comparison to about 8 per cent of Hindustan Lever's Kwality Walls brand, and 7 per cent of Vadilal. Southern brands such as Chennai-based Hatsun Agro Product-owned Arun has 4 per cent share while Kolkata's Metro Dairy claims a 3 per cent share.