AC market turns hot in Indore

Shopkeepers expect sales to surge by 14 per cent this year

With the temperature soaring to 47degrees C, the city's air conditioner (AC) outlets are expecting hot business this summer.

According to rough estimates, shopkeepers here sell around 10,000 units annually. They expect market size to grow by 13-14 per cent this year.

Majors such as Voltas, LG, Samsung, Videocon and Hitachi will have to slug it out with local companies for a larger pie of the market since the industry is dominated by the unorganised sector, say analysts.

However, they say the price difference between the organised and unorganised has narrowed down on account of the excise cut from 110 per cent to 65 per cent. Prices have slid by about 8-10 per cent which has resulted in good growth in the organised segment.

While the city AC sales are growing at 10 per cent, it is the domestic brands that are registering a faster 30 per cent growth rate. Market leader among the domestic brands, Voltas is devising strategies to increase its share from the current 24 per cent.

A senior official with Voltas said the increase in the disposable income has also helped the market to grow. "We expect the market to grow further this year as there is the power supply condition has improved," he said. The company is targeting B and C class cities with a new range of vertis premium and vertis gold ACs this season.

Samsung's senior manager, marketing, Abhijeet Chandorkar, said, "We have seen a phenomenal growth. Our sales have doubled and we have been able to capture 43 per cent market share in Indore. We will be rolling out new offers this season too."

Chandorkar further said both split and window ACs had witnessed good growth. "Last year, we sold 2,400 units in the city. We have recently unveiled our new market campaign for 2006 "� "India ka Dil, India ka AC". We will also launch a new range this year," he said.