Voltas anticipates double-digit growth in the Air Conditioner market
India: With the temperatures
expected to shoot up high this summer the company is expecting huge sales of
air conditioners as the product is becoming more of a necessity than a luxury
product. Voltas will focus on selling up to 5 lakh units by FY18.
Voltas recently launched power saving
air conditioners this summer and it expects that this would fuel the growth of
the room air-conditioning segment. This segment is anticipated to grow about
10% for Voltas this summer. According to Chief Operating Officer Pradeep
Bakshinew, the company’s new range of products such as split air-conditioners
and window ACs would continue to grow more than the industry.
The company generated 73% sales from
split AC and rest 27% from traditional windows AC. The company has around 150
variants in the split AC segment. The company generated 54% of Air conditioner
sales from tier-II and tier-III cities and the rest 46% from the metro cities.
According to TechSci Research, the
unpredicted weather has affected the market last year and with severe summers
predicted this year, the demand for the air conditioners will shoot up, With the
companies laying proper strategies the Air- conditioner market is expected to
register double digit growths.
According to a report published by TechSci Research “India Air Conditioners Market Forecast &
Opportunities, 2020”, the Indian air conditioners market is projected to
grow at a CAGR of over 10% during 2015-20. Accounting for a lion’s share of the
air conditioners market split air
conditioners segment was the highest revenue generator, followed by VRFs and
window air conditioners in 2014. The market share of window air conditioners
has been declining over the last few years on account of decreasing price gap
compared to split ACs, due to which many leading companies such as Samsung and
LG have exited from the windows air conditioning segment while other major
companies like Voltas, Daikin, Blue Star, etc., have lowered the production of
window air conditioners in the country.