AC market hots up
Domestic companies like Godrej and Onida are gearing up for challenges from biggies like LG and Samsung. LG is aiming for a 30 per cent market share while Samsung is targetting a 25 per cent market share in 2009. Saurabh Turakhia reports.business Updated: Apr 10, 2009 22:50 IST
Domestic companies like Godrej and Onida are gearing up for challenges from biggies like LG and Samsung. LG is aiming for a 30 per cent market share while Samsung is targetting a 25 per cent market share in 2009.
Godrej Appliances has a market share of 8 per cent, George Menezes, chief operating officer, Godrej Appliances, said at the launch of the new positioning for the company ‘Design by Curiosity’.
Onida, which claims to control 15 per cent of the split air-conditioner market, has an aggressive marketing and advertising budget of over Rs 20 crore, said G Sundar, CEO, Onida. The company is eyeing a 20 per cent market share during the current financial year.
Godrej, Samsung and LG have launched new ranges of split air-conditioners. The Godrej Eon range of split air-conditioners are priced between Rs 20,790 and Rs 36,990.
Samsung’s range has 18 split and 7 window air-conditioner models while LG’s range has 43 split and 19 window air-conditioner models. While Samsung air-conditioners are available for Rs 16,090 to Rs 35,990, LG models are priced between Rs 10,000 and Rs 1,00,000.
Air conditioners constitute 20 per cent of Godrej Appliances’ overall business. The company spent Rs 85 crore on its research and development in 2008-09.
Onida had a volume share of Rs 450 crore in 2008 and has set a target of Rs 775 crore for 2009.
Split air-conditioners are registering higher growth over window air-conditioners. According to Ravinder Zutshi, deputy managing director, Samsung, the market for split air conditioners will register a 63 per cent growth this year.