New Delhi: The country's two major air conditioner manufacturers, LG and Samsung, are optimistic of robust demand for ACs this year, notwithstanding slump in sales in 2011. (Agencies)
"This year we are optimistic, but of course cautious. We are looking for a growth of around 25 percent and targeting a revenue of Rs 2,200 - 2,500 crore from the AC business," LG
India Business Sales Head (AC) Saurabh Baisakhia told PTI.
Out of its total business, the company is hoping that 25-30 per cent will be contributed by the window AC segment, while the rest will come from split AC sales, he added.
Baisakhia said the AC market is estimated to be around 3.5 million units in 2012, registering a growth of around 10 percent.
"We are also expecting a boost in our market share. From 27-28 percent in last year, the market share should increase to 28-29 per cent this year," Baisakhia said.
Expressing similar sentiments, Samsung India Vice-President (Home Appliances) Mahesh Krishnan said the company is expecting robust double-digit growth in AC sales in 2012.
"We are expecting to sell 5,00,000 split air conditioners in this year. This would imply a growth of 43 percent over our AC sales last year," Krishnan added.
The company had sold around 3,50,000 units of ACs last year.
He said new marketing campaigns, energy efficient range of ACs and differentiated service offers will help in expanding the company's reach in Indian AC market.
"With the launch of the new 2012 AC range, Samsung expects the contribution of its 5-Star rated models to its total AC sales to grow to 25 in 2012," Krishnan said without sharing details.
As Samsung India has stopped producing window ACs from this year, so it is expecting all of its sales to comprise of split ACs, he added.
In 2011, split ACs accounted for 85 per cent of Samsung's total AC sales. Last month, it announced to stop selling window ACs from this year as its sales have dwindled.
Krishnan had said that the share of split ACs in the Indian market raised from 75 per cent in 2010 to 77 per cent last year, while the window version registered a fall of 26 per cent.
According to the Consumer Electronics and Appliances Manufacturers Association (CEAMA), the estimated Rs 35,000 crore Indian consumer durables market grew by only 8-9 percent in 2011 compared to an earlier expectation of 15 percent, mainly due to a slump in AC sales.
New Delhi: The country's two major air conditioner manufacturers, LG and Samsung, are optimistic of robust demand for ACs this year, notwithstanding slump in sales in 2011.