Voltas targets 20 per cent share in AC market

Our Corporate Bureau
07 March 2006

With this launch coupled with aggressive marketing and distribution strategy the company hopes to increase its market share by 4 per cent to 20 per cent in the 15 lakh unit industry.

According to K J Jawa, senior vice president, unitary products business group, Voltas, "Last year when the industry grew by 22 per cent, we grew 50 per cent. It should be noted that one company shut down its plant while the market leader LG Electronics India lost 2 per cent market share. Now Voltas has a market share 16 per cent, LG Electronics 33 per cent, Samsung India 13 per cent while Carrier, Hitachi and others share the balance.

For Voltas, 70 per cent of the sales come from the institutional segment while the balance is accounted by the domestic segment. On the other hand LG Electronics and Samsung India gets most of their sales from the individuals segment.

Jawa said the company has earmarked Rs20 crore for media campaign and Rs6 crore for retail expansion this year. The new campaign tag line will be `India Ka Dil, India Ka AC.''

"We will expand our dealer network by 1,500 to 3,500 dealers nationally. Similarly the current franchisee spread will be increased to 500." The company will be targeting the B and C cities with the launch of new range of Vertis Premium window and split air conditioners. The newly launched air conditioners are priced in the rage off Rs9,900 - Rs28,000 (window) and the split air conditioners are in the range of Rs14,500-Rs36,000.

Last year the company introduced a sub Rs10,000 air conditioner. According to Jawa, around 30,000 units have been sold till date.