Voltas Ltd, the Tata group-managed air conditioner and refrigerator maker, is implementing a three-pronged strategy to capture the number one slot in the retail segment of the airconditioner (AC) market. The strategy hinges on introduction of new products at regular interval, brand building and establishment of a widespread servicing network.
In line with the strategy, the Tata company has began introducing new products in the retail segment, the fastest growing division. The last introduction was Vertis, which was launched in Koltata on Saturday.
The rationale behind the move was that Voltas -- the largest player in the air conditioner industry with a 29 per cent market share -- was still lagging behind the Japanese and Korean players in the Rs 400 crore retail market. Moreover, the retail segment is the fasted growing division in the industry with a growth rate of 26 per cent per annum.
The Vertis range is the product of a manufacturing joint venture with Fedders International Inc of the US. The company would introduce a new range in September-October, said R S S N Raju, regional vice-president (west zone and south zone).
K J Jawa, regional vice-president (north zone, east zone and central zone) said Vertis was of international standards. "They are energy saving machines with a pay-back period of two years. The idea is to offer American quality at Chinese price."
Raju said the company has earmarked a kitty, bigger than the previous year's Rs 10 crore, for brand building. In addition, the company "had put in place a re-invigorated dealer network and would be shortly introducing a new advertisement campaign," Raju added.
