LG expects 35% growth with new launches

The growth is expected to be driven by launch of the new range of air conditioners

Consumer durable major LG is expecting a 20-25 per cent growth in its air conditioner business, which currently stands at Rs 2,000 crore, on the back of new launches.

Speaking to reporters after launching its new range of air-conditioners here today, Saurabh Baisakhia, business head - air conditioners, LG India, said the a-c business stood at around Rs 2,000 crore in 2013 and the company projected a turnover of Rs 2,500 crore with a 28 per cent market share by the end of 2014. It today launched India’s first a-c with Himalaya Cool, Monsoon Comfort and Mosquito Away Technology.

“With our new technologies, a 5 star rated a-c will have energy savings up to 53 per cent,” added Kulbhushan Bhardwaj, assistant general manager- room air-conditioners, LG India.

The new products would be a good game changer and going forward it could also contribute 30-40 per cent to the total sales, added Baishakhia. It plans to launch two new designs and expects markets beyond Tier  II cities to play a significant role.

The company, which entered India a little over two decades ago, cumulatively sold seven million units in the room conditioners category. It claims to have a 24.4 per cent market share. The industry sold 3.5 million units in 2013 and is expected to sell 4.6 million units in 2015, he said.

Baishakhia noted, the industry reported 10-12% CAGR.

"The new products which were launched will be a good game changer and going forward it can also contribute around 30-40% of the total sales" said Baishakhia.

The company plans to launch two new designs and expects markets beyond tier - II cities would play a significant role.