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Consumer durable company Videocon is planning to increase its market share in the air-conditioner (A-C) segment to 20 per cent by 2017 from the current six per cent. This translates to around 1 million sales in two years from 450,000 units in 2015.
Speaking to reporters after launching its new quantum edge technology-based A-Cs here recently, Akshay Dhoot, head of technology and innovation, Videocon, said the company had chalked out an aggressive plan for the A-C business, which last year had clocked Rs 580 crore and was expected to reach Rs 1,100 crore this year.
Sanjeev Bakshi, country head for A-Cs, Videocon, said, “Our goal is to achieve 20 per cent market share by end of 2017.”
The targets will be achieved by widening products, which is currently 65, selling points, which will be increased to 9,000 from the current 3,600 by the end of this year. The company will also go for a 360-degree marketing campaign.
Of the total revenue the company spends nearly 3.5 per cent on promotions, said Bakshi.
On capacity, Dhoot said at present the A-Cs were manufactured at their Aurangabad facility where the capacity has been enhanced to 500,000 units from 300,000.
“In future we will look at manufacturing across the country,” said Dhoot, while refusing to speak on company's investment plans including in the upcoming facility in Tamil Nadu.
In 2009, the company was allotted land at Manamadurai and it was planning to invest around Rs 1,600 crore. The plant yet to start production. Dhoot did not give any timeline and way forward for the plant.
Earlier company's officials had said there was some delay in the completion of the project due to the economic slowdown and related issues.
