Videocon looks to corner 13 pc share in AC market this yr

Homegrown consumer durables maker Videocon Industries is aiming to corner up to 13 per cent of the air-conditioner market this year, mainly by increased penetration in tier II and III cities and B2B sales.
The company, which today introduced India's first green air-conditioner powered by solar energy, is looking to achieve sales of around 6.5 lakh units this year and a turnover of about Rs 1,750 crore.
Besides, Videocon would also expand its distribution network to 13,500 points of sales, mainly targeting its core tier II and III markets.
The firm's current market share stands at around 10 per cent.

"We are targeting a market share of around 13 per cent this year with a Rs 1,750 crore turnover in the air-conditioner segment," Videocon COO - AC Division Sanjeev Bakshi told PTI.
"In this, around 22 to 23 per cent sales would come from B2B and rest would come from other channels.

"This season, we would sell around 6.5 lakh AC units... Our growth would come from the government infrastructure projects, B2B and tier II and III cities, which are growing much faster," he said.
Videocon, which had introduced app-controlled smart ACs under Aryabot brand, has received good response from customers.

"Last year, the group sold around 4 lakh ACs in which Aryabot was almost 9,000. Right now it's limited to selected cities but in coming times, it would grow," he said.
Durables contribute around Rs 14,000 crore to the group's revenue, he added.
Besides, Videocon would also expand its distribution network, targeting its core tier II and III markets and metros.
"Right now we have around 9,000 points of sales of AC and this year, we are planning to take it to 13,500, which would take us to almost 60 per cent penetration," Bakshi said.
Presently, top 16 cities contribute around 58 per cent of Videocon's AC business, he added.

The company, which today launched two models of its hybrid five-star solar AC, has priced the 1 ton model at Rs 99,000 and 1.5 ton at Rs 1.39 lakh.
"We would be targeting the big corporate houses and developers of green buildings with this one," Bakshi said.
Presently, the AC sector is estimated to be around 4 million units and is expected to grow by 25 per cent.