Voltas targets 20% market share in ACs

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Voltas is eyeing 20% marketshare in the Rs 3,500-crore air conditioning industry from 17% during fiscal 2008-09. To achieve this, the company is augmenting production from 3.5 lakh units per annum to 5.25 lakh units at its two plants in Silvasa and Pant Nagar, said Pradeep Bakshi, vice-president (sales and marketing), unitary products business group, Voltas Ltd.

Speaking to FE, he said the total capacity of the AC industry is expected to go up sizeably to 2.6 million units in 2008-09 as against two million units in 2006-07. “We are looking at a sharp growth in our marketshare in the coming fiscal to 20% as against 17% now. Towards this, we have spruced up our marketing and distribution network across the country.” “With the introduction of 42 models during the fiscal, we expect to post a sharp growth during the next fiscal and accordingly we are increasing the volume to 5.25 lakh units a year from the current 3.5 lakh units,” he said. To achieve it, the company will increase the number of channel partners from 3,000 to 4,000 next fiscal and will set up 125 new franchisee showrooms, he added.

“We expect contribution from split ACs to go up to 65% next fiscal as against 55% now, while the remaining will come from window ACs. The company has earmarked an ad budget of Rs 30 crore for 2008-09 fiscal as against Rs 20 crore in Rs 2007-08,” Bakshi said, adding “the AC market is growing at 30% per annum in India. Our endeavour is to lead the industry and make economical products available at most competitive rates.” According to him, the company is also increasing its production of other items such as water coolers to 30,000 a year, water dispensers to 60,000 units a year and commercial refrigerants to 50,000 units a year.

“We will be sprucing up our OEM customer base for commercial refrigerants,” he further said.