South Korean consumer electronics maker LG is aiming to garner around 40 per cent market share of the inverter air conditioner market in India this summer, betting on its range of energy efficient products with advance features, said a top company official.
The company, which sells a range of ACs through over 20,000 points of sale across India, expects a faster growth rate from the non-metro and tier III markets, besides the metros, which are the highest contributors to the company's sales.
The Indian room AC market is expected to be around 5 million units, with over 20 companies competing in the segment.
Commenting on the company's new products for this season, Babu said, "We have improved the lineup with wi-fi and other features such as good designs with good aesthetic sense and colours."
This season, LG has a line up of 54 stock keeping units (SKUs) in the AC segment in which company has increased the range of 5-star units to 28, he added.
On market demand, Babu expects good growth in the non-metro and tier III cities driven by demand for LG's energy-efficient range.
"The penetration of AC sales is only 5 per cent in India and has huge space for growth," he said.
At present, 50 per cent of LG's sales comes from its distributors and rest from others, while sales from the online channels contribute around 3 to 4 per cent of the total.
Babu said LG has also earmarked Rs 50 crore for marketing and branding campaign for ACs this season, in which around 30 per cent would be spent on digital platforms.
LG India, at present, has a capacity to roll out around two million units of ACs from two plants situated at Noida and Pune.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)