LG's CAC wing eyes Rs 160-cr turnover

The commercial air condition (CAC) division of LG Electronics India Private Limited is edging to the top most company in India in the commercial air condition segment by 2005.

According to Sujoy Chakrabarti, product manager of CAC, LG Electronics, the company is eyeing a total turnover of Rs 160 crore from the Indian market by the end of 2005 and this would enable the company to notch the top rank in commercial air condition business.

"We expect a total turnover of close to Rs 100 crore in 2004, and the total installations at 67,000 tonnes. The growth in this segment will be tremendous in the coming years since air-conditioning has become a necessity rather than a luxury. We will will be introducing more technologically-upgraded products in this segment which will in turn help the development of the market in India," Sujoy said.

Roof-top AC system and central AC system, which reduces the power charges, are the new products introduced by the company. These products will be suitable for shopping malls, hospitals, hotels and commercial halls. The speciality of the central AC system is its capacity to effect only in the rooms which are occupant.

He said that the total market in this segment in India is around Rs 480 crore. The price of AC systems and products will increase in the near future due to the increase in raw material cost, especially of steel.

He also added that LG has been giving more importance to the Kerala market as the state has a good potential along its length and breadth. This is not the case with other states where the market is more city-oriented.

The company targets a 2,500-tonne installation and Rs 5 crore revenue in Kerala this year.