Refrigerator, AC sales to sizzle as summer sets in

Written by Neha Pal | New Delhi | Updated: Apr 30 2010, 05:54am hrs
Consumer durable firms are witnessing an increase in demand for products like air conditioners and refrigerators this summer. Haier and Samsung have seen a phenomenal growth in demand by almost 100% to 150%. Companies like LG are also experiencing a decent 50% growth.

Samsung is expecting to double its sales volume as it plans to sell 10 lakh units of AC this year compared with 5 lakh last year. The company has witnessed a 30% growth in demand for refrigerators as it hopes to sell 17 lakh units this year.

We are experiencing an increase in demand for our products and are planning to make $15 million investments. Of that, $10 million would be used in air conditioner manufacturing plant and the rest in home appliances, said Ravinder Zutshi, deputy managing director, Samsung India.

In case of LG, the company is targeting to sell 12 lakh units of AC this year compared with 8 lakh last year. As far as refrigerators are concerned, it expects to sell 30 lakh units as against 19.7 lakh last year.

Ajay Bajaj, business group head of LGs AC division, said, The rise in prices of our products is due to increased input costs. But, it has not deterred our consumers from buying them.

One of the reasons behind the increase in demand for consumer durable products, according to Eric Braganza, president, Haier Appliances (India), is the good disposable income of consumers and also the provision of payment in installments.

Haier is targeting to sell 1.4 lakh ACs this year, a growth of 160% of over the previous year. In terms of refrigerators, it would be selling 5 lakh units, which is 150% more than the last year.

Eric Braganza told FE, Haier is set to achieve sales of over Rs 950 crore in calendar year 2010. We have a growth target of around 200%. We are planning to sell 5 lakh units of refrigerators, 1.4 lakh units of ACs this year, which has seen a phenomenal growth in demand over the last year.

Braganza also said that the company is upgrading the new facility with the state-of-the-art equipment to create research and development facility for refrigerators. It has plans to spend Rs 100 crore in its manufacturing plant at Ranjangaon in Pune.