Videocon aims 15% in AC market share in 2016; to sell 600,000 units

Homegrown consumer durables company Videocon today said it is targeting 15 per cent market share in the air conditioner segment by selling 600,000 units in 2016.

The company has introduced two new models under the inverter AC range and is set to expand its portfolio to 500 products, a senior company executive said here today.

"With the launch of Penta Inverter ACs, we are expecting the overall AC sales figures to reach up to 600,000 units this year," said Sanjeev Bakshi, chief operating officer - AC division, Videocon.

"Further, we expect to increase our overall market share in the AC segment to 15 per cent from the current 10 per cent," he said. The company plans to "make a big leap in its market share" to break into the top three players in the AC segment by 2018, he added.

The overall air conditioner market size in India is nearly four million units and the industry is expected to grow at 15 per cent per annum this year with three per cent penetration, according to industry estimates.

The overall market size is expected to reach 10 million units by 2020 with 11 per cent penetration.

To cash in on this expected growth and drive its market share, Videocon is targeting 10 per cent of the sales to come from the new product range.

The company is aiming 20 per cent of its sales from B2B air conditioners, targeting various government offices, banking and financial institutions and telecom companies, Bakshi said.

Further, Videocon is increasing its sales points from 7,000 to 9,000 between January and April this year, Bakshi added.

The company produces 750,000 air conditioners every year and expects to increase it to one million units annually by the end of 2016.

It is also looking at increasing its pan-India presence, besides the traditional strong markets in west and south India to step up its sales.