Videocon eyeing 15% market share in AC segment

Videocon Industries is eying a 15 per cent market share in the air-conditioner segment as it expects to see strong growth in demand this summer.

The company has launched eight split AC models of 1 tonne and 1.5 tonne under the ‘Aryabot’ range priced between ₹34,000 and ₹39,000.

Sanjeev Bakshi, COO, Air Conditioner Division, Videocon, said: “We aim to increase our market share in the AC segment from 10 per cent to 15 per cent by the end of fiscal 2016. We are expecting to sell about six lakh units this year.”

Bakshi said that the company plans to further strengthen its distribution network, increase marketing spends as well as ramp up the number of locations where ACs are manufactured or assembled in the country.

“We are increasing the width and depth of our distribution. We are ramping up distribution of our products from about 7,000 sales outlets to about 9,000 sales outlets this year. Also we are increasing marketing spends by about 40 per cent to promote the Aryabot range of ACs,” he said.

“So from logistics to marketing and to production, we are strengthening all the aspects, with the aim to increase our market share in the AC market this year,” he added.

The past three years have been challenging for AC makers due to factors such as unseasonal rain spells and currency fluctuations. The company, however, believes with revival in the residential real estate segment and prediction of soaring temperatures during summer, the consumer demand is expected to see a boost.

“We are also expecting to see an increase in demand from institutional buyers this year such as government institutions, banks as well as real estate players,” he added.

Aryabot air conditioners are intelligent devices that come with features like ability to pair up with smartphones and smartwatches, allowing GPS access through connectivity to multiple satellites.