Samsung sees spurt in AC sales

May 02, 2011 06:11 pm | Updated 06:11 pm IST - NEW DELHI

With mercury already soaring, Samsung is all set to tap the booming Indian air-conditioner market. The Korean consumer electronics major that recently launched its new range of “innovative” ACs is hoping to see a spurt in its sales this year.

“We have recently introduced Purista and Invincia range of split ACs to strengthen our foothold in the segment, while we are planning to introduce 18 new AC models across split and window categories. With innovative features like ‘virus doctor’ with S-plasma ion technology that eliminates airborne viruses like H1N1 and SARS, we see demand for our ACs going up this season,” Samsung India Deputy Managing Director Ravinder Zutshi told The Hindu .

Samsung that currently has a market share of about 32 per cent in the split AC segment is aiming at a growth of 35-40 per cent in this segment alone, while sale of its window ACs is also picking up. “Split ACs’ contribution to our total sales is expected to grow to 80 per cent in 2011, while our overall AC sales is expected to cross 8-lakh units this year from last year’s 6.5-lakh units,” said Mr. Zutshi.

According to the Consumer Electronics and Appliances Manufacturers Association (CEAMA), the overall room AC market in India, estimated at 32 lakh units last year, will touch 46 lakh units by 2011. In value terms, it stands at Rs. 5,500-6,000 crore.

Pointing out that Samsung India would invest Rs. 350 crore in its Chennai facility over the next four years, Mr. Zutshi said the Korean giant, which has already invested nearly Rs.1,600 crore in its Indian operations so far and recently set up an integrated facility near Chennai, would invest another Rs.50 crore on making AC moulds at its facilities in Chennai and Noida to meet the growing demand for its ACs. Over all, Samsung India is eyeing a 40 per cent jump in its revenues in 2011 to reach $4.9 billion against $3.5 billion clocked last year.

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