After two tough years of low growth, air-conditioner makers such as Daikin believe this year could be the turnaround year for the segment.

Kanwal Jeet Jawa, Managing Director, Daikin India, said, “If we see a good summer, there could be a 15-20 per cent growth for the industry, and even if it is weak, by the most conservative estimates the market will to grow by at least 10 per cent.”

He admitted that other players might be giving more conservative growth projections for the market, looking at the flat growth at present, but said he was optimistic that the market would not become worse than what the industry saw in the past two years. Even as the summer had a slow start in April and the northern market saw a slow pick-up, estimates suggest that this year would see an extended summer. Jawa said AC sales in the east and west parts had already picked up.

In the past two years, as the industry made its products compliant to BEE ratings (for energy efficiency), it faced challenges on currency fluctuation. Commodity prices, among other factors, had led to increase in prices in the past two years, besides the weak summer playing havoc with AC sales.

Jawa claimed air-conditioners had become a necessity and every house required several ACs. The market is yet just over three million units, he said. “The penetration level is still low. We are tapping not only metros, but into mini-metros and smaller towns in a big way now. Nearly 30-40 per cent sales growth is coming from mini-metros and small towns,” he added.

This summer, Daikin India is also working toward putting its products on the shelf at modern retail stores aggressively, besides strengthening its dealership networks and its exclusive company managed stores called Daikin Exclusive Solution Plazas.

“India is a key growth market for Daikin globally and we want to be among the top three players in the AC market on the back of our innovative technology and products by 2015,” Jawa said.

meenakshi.v@thehindu.co.in

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