January 26, 2021

AC Makers Focus On Smaller Cities For Growth

With summer round the corner, air conditioner makers are gearing Air-Conditioner-pic-1-150x150up to introduce products with focus on energy efficiency as they expect tier II and III cities to drive growth.

Firms like LG, Voltas, Carrier Midea, Daikin, Blue Star and Panasonic are confident that their sales will grow in double-digits this summer despite unseasonal rains in North India delaying onset of the warm season

Manish Sharma, president, Consumer Electronics and Appliances Manufacturers Association (CEAMA) told PTI that AC market size will stand at 3.4 million units in FY 2014-15. The production for FY15-16 is projected at 3.7 million units, accounting to a turnover of Rs. 8,000 crore.

According to Refrigeration and Air Conditioning Manufacturers Association (RAMA), the industry is hopeful that this season will be better than last, even though there has been a temporary setback due to rains in March.

South Korean multinational electronics company LG Electronics India expects to increase its revenues by over 25 per cent this FY. Sales of flat panels and mobile phones would be the leading growth driver for enchanching the revenues.

Keeping in mind the needs of Indian consumers for power management, the company has also launched its Smart Inverter 2.0 refrigerator, Inverter V AC with Mosquito Away Technology.

Similarly, Panasonic which has lined up more than 50 models during the season, is expecting sales in smaller cities to grow as much as in metros.