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Rediff News  All News  » Business » Godrej eyes 10% share in AC market

Godrej eyes 10% share in AC market

February 06, 2008 12:01 IST

Godrej Appliances, a new player in the air conditioner segment, is targeting to become the third largest player in the category. It plans to launch a slew of new products and increase the distribution network to achieve the goal.

The country's air conditioner market, estimated to be at 1.9 million units, is growing at a rate of 30 per cent. Godrej is planning to launch 25 models, comprising seven window and 18 split air conditioners, to consolidate its presence in the Indian market.

George Menezes, Chief Operating Officer, Godrej Appliances, said, "Despite being the late entrant in the category, we have managed to achieve a 6.5 per cent market share. We are aiming at the third position with 10 per cent market share by the next year."

It recently launched the navigator range of window air conditioners with an i-flow technology, moving away from the linear grill design.

"The company intends to increase air conditioner sales to 200,000 units from the current 120,000 units," said Sanjeev Bakshi, General Manager. "We will also beef up the distribution network by 20 per cent."

Godrej has positioned the entry level air conditioners at comparatively lower prices than that of other players in the segment.

Its below one-tonne window air conditioners are priced at Rs 12,000, while the 1.2 tonne costs Rs 15,000. The established players such as LG Electronics and Samsung on the other hand have priced the one-tonne A-Cs at Rs 15,000.

A Mumbai-based dealer observed that the 1.2 tonnage capacity could be a trumpcard for Godrej in terms of product offering and electricity consumption, which is a significant factor in purchase.

Pradeep Bakshi, Vice President (sales and marketing), Voltas, said, "The A-C sales have registered an unprecedented 41 per cent growth in April-December 2007. The company has tapped the class B and C towns, rural markets and introduced the sub-1 tonne air conditioner below Rs 10,000 level, which has done well."

Tejal A Deshpande in Mumbai