With summer around the corner, LG India expects to grow its air conditioners business by 20-25 per cent on the back of growth in new geographical markets as well as its value propositions of its products.

Despite the challenging past 2-3 years for the air conditioners segment, players expect the market to grow by about 8-10 per cent this year.

The company is projecting a turnover of ₹2,500 crore with 28 per cent of the market share in the residential AC segment, by the end of this year. It has a market share of about 24 per cent.

Saurabh Baisakhia, Business Head, RAC (Room Air Conditioners), LG India, said: “We are cautiously optimistic while the AC business has seen challenging times, the need for air conditioners has grown and the companies probably need to offer a strong value proposition to the consumers and consumer acquisition has become the name of the game.”

The industry is banking on growth in the real estate sector, besides tapping into the trend of consumers buying more than one AC for a single household.

From launching air conditioners which protects consumers from mosquitoes to the Himalaya Cool technology in ACs that provide instant cooling and savings on energy costs, the company believes it has several products up its sleeve to woo consumers. The company has also introduced the Monsoon Comfort technology for round-the-year comfort.

Cost innovations

With the new energy norms kicking in from January, prices of products have gone up, which has led the company to work on several cost innovations. Baisakhia said that nearly 80 per cent of the sales are coming from 3 Star and above rated products.

Related Topics
comment COMMENT NOW