The Hindu : Business : Air-conditioner market catching up in State

Online edition of India's National Newspaper
Friday, Mar 17, 2006

Business

Business

Air-conditioner market catching up in State

Staff Reporter

Apartments, houseboats offer good base

KOCHI: The market for air-conditioners is growing in Kerala. The State is one of the focus markets for Voltas, the air-conditioning and engineering services company of the Tata Group.

Kerala contributes 15 per cent of the south zone sales of the company's air-conditioners, according to K.D. Virmani, senior general manager, Unitary Products Business Group, Voltas Limited.

The air-conditioner market in Kerala has grown at 15-20 per cent while the company has grown at a rate of 48 per cent. He claimed that Voltas has emerged as the top air-conditioning brand in the State. Apart from commercial outlets and ATM centres, even houseboats are using air-conditioners.

The NRIs and their relatives have been potential clients in the State.

About 80 per cent of the product sold in the State are split air-conditioners. In contrast, only 40 per cent of the product sold are split air-conditioners at the all-India level.

As the apartment culture is catching up in Kerala, the sub-one tonne air-conditioner introduced by the company is a good choice for small rooms, which are less than 120 sq. ft. The 700-750 watts per hour power consumption for the sub-one tonne air-conditioners is a major attraction for the middle class segment, according to Mr. Virmani.

The company has launched a multi-pronged strategy to attain market leadership in the domestic air- conditioner market. With 16 per cent market share in the country, Voltas is on a mission to grab 20 per cent in 2006-07.

The company is also introducing its new range of products in the split and window air-conditioner segments. Last year, the company had introduced a range of air-conditioners below Rs.10,000.

The purchase of air-conditioners was a dream, but has become a reality for a larger section of Indian households, he said.

P.A. Nair, Regional Business Head, and M.M. Sathyan, Business Manager, were also present.

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