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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.

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