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Home-grown consumer durable companies are pitting themselves directly against multinational corporations (MNCs) by entering the super premium category of ACs and refrigerators this summer.
While Videocon Industries has launched its most expensive range of ACs for addressing severe temperatures, Godrej Appliances has also moved price points northwards with the new NXW (Next World) refrigerators.
“Demand is inelastic in the super premium category, which is growing over 50 per cent in the refrigerator segment with capacities in excess of 300 litres. With the launch of the NXW refrigerators, we are addressing the new generation’s lifestyle needs and competing more aggressively against the MNC brands,” said Kamal Nandi, Business Head & Executive Vice-President, Godrej Appliances.
The ₹2,750-crore appliance division of Godrej & Boyce is now targeting a 15 per cent market share in the super premium AC category in the next three years. The sector is dominated by MNC brands like LG and Samsung.
“We will extend the NXW brand across all our appliance categories like air conditioners, washing machines and microwaves, and also spend ₹10-15 crore on advertising in the next six-nine months on the brand,” added Nandi. The new range of NXW refrigerators is pegged between ₹52,000 and ₹82,000.
Meanwhile, Videocon Industries has also launched its most expensive AC brand with Quantum Edge technology for temperatures as high 55-degree Celsius. “Consumer behaviour is changing and the youth today are willing to spend on premium products. Our new range of Quantum Edge technology ACs are the largest both in size and price and is the most premium in our AC portfolio,” says Sanjeev Bakshi, Country Head-AC, Videocon. The company is also enhancing its AC manufacturing plants in Aurangabad and Madurai with a capacity of 6 lakh units.
“We sell 4 million ACs a year and have a 6 per cent share, which we plan to double this year. The super premium ACs are pegged between ₹38,000 and ₹45,000,” added Bakshi.
This summer, home-grown company Mitashi entered the split AC segment pitting itself against established AC brands. “An MNC brand is in the consumer’s mind, but our ACs are as good as any of them as most of us are dependent on imports of panels from countries like China and Taiwan,” said Rakesh Dugar, CMD, Mitashi.
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