Carrier Midea India targets 40 pc sales growth in 2016

Home appliances maker Carrier Midea India is aiming for 40 per cent growth in sales this year on the back of good performance by AC segment, which contributes three-fourths of its total revenue, as well as other product categories.
The company, a 40:60 JV between US-based Carrier Corporation and China's G D Midea, is also expanding its sales network and would have 3,200 retail outlets selling its range of products by the end of March, 2016.
"We are targeting 40 per cent growth in 2016. However ACs, which has a total contribution from 75 to 80 per cent, would come down to 70 to 75. Other categories would grow," Carrier Midea India MD Kishan Sachdev told PTI.

At present, Carrier Midea India has an annual turnover of Rs 1,000 crore.
Carrier Midea, which has its core presence in AC segment also sells washing machines, water heaters, water dispensers, air purifiers, wine cooler and microwaves in India.
"In 2015 we grew approximately 30 per cent and a year before that in 2014 we grew over 40 per cent," he added.

Carrier Midea India, as a market strategy has decided not to increase the price of its existing AC models this season as it has been able to keep prices under check due to local manufacturing and localisation.
"Almost 100 per cent of our range is manufactured in our factory here. Presently almost 66 per cent of the components are imported (by value) including compressor. Besides this other components are localised," said Sachdev.

The company is now manufacturing all models here except some niche ones, which are directly imported.
He further said: "Over the last two years, our volumes have increased 90 per cent and we have achieved a certain scale and our factory efficiency has increased. In spite of 10 per cent increase in foreign exchange, we have been able to keep the prices flat".
Carrier Midea has a manufacturing unit at Bawal, Haryana with a capacity to role out 7 lakh AC units per year.
When asked about exports, Mahajan said: "At the moment, the company is focusing on the domestic market only".

This season, Carrier Midea would have a product range of 115 models of ACs, in which 78 would be under Carrier brand and rest 37 are under Midea.
"Carrier has majority of volume. Midea is still a new brand in the market here. Of course, the growth rate of Midea is faster due to its smaller base," he added.