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Hitachi expects 15 pc growth in room AC sales this year

Press Trust of India  |  New Delhi 

Johnson Controls-is expecting a 15 per cent growth in the residential AC segment this year led by its inverter range, said a top

The company, which mostly operates in the premium residential AC segment under brand Hitachi, is expecting to almost double the sales of its inverter range of and around 50 per cent growth in sales of 5-star inverter over the previous year.

Besides, Hitachi, which is expanding its in tier-II and III markets, has also introduced new models designed specifically to cater to the first time and mid-segment AC buyers.

"We will continue to be one of the top brands in the air conditioner segment. We expect to grow much faster than the market and achieve nearly 15 per cent growth (by value) this year," said Johnson Controls-

According to its strategy, Hitachi, which is revamping its brand identity, would focus on south and west region markets.

"With this new brand identity, our growth addresses the inherent consumer needs and will be driven by a strong sales and marketing push in south and west markets this year," he said.

had witnessed over 24 per cent year-on-year growth (y-o-y) in room AC last year against the industry growth of 7 per cent.

"This growth was majorly driven by the company's focus towards providing and along with We are one of the top brands in with a 12 per cent market share in the AC segment and intend to add a per cent or two by the end of 2019-20," he added.

The Indian residential AC market has witnessed almost flat growth in the past two years, but Singh expects a "turnaround" this year in the industry.

"Given the timely onset of summer and the prediction of below-normal monsoon this year, we expect that the industry would see a double-digit growth over last year. Overall, higher disposable incomes, increasing electrification, changing weather conditions, growing urbanisation, year-round AC usage trend and easy access to financing schemes have been a few key factors driving the growth of AC sales in India," Singh added.

According to Singh, India is witnessing a continual shift towards inverter ACs, which now contributes around 40 per cent of the overall industry sales.

The company is investing around four per cent of its revenue into promoting the new brand through print, out-of-home, digital and other means of connecting with the consumers, he added.

"Hitachi aims to reach every Indian household and become India's leading brand by 2021," Singh said.

The Indian room AC industry market is expected to be of around 4.5 million unit with more than 20 competing in the space, in which and are leading the space.

Johnson Controls-is a joint venture of Johnson Controls, USA, and Hitachi Appliances,

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sun, May 05 2019. 13:40 IST
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