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Videocon Industries is investing more than ₹100 crore for upgrading its air conditioners range with new technology and enhanced media spends. With a single digit market share at 8 per cent in air conditioners, the home-grown company is hoping to double this share on the back of its new ‘Wi-Fi enabled’ AC range which can be controlled using a smartphone app.
Sanjeev Bakshi, Country Head-AC, Videocon Industries, said: “We are targeting sales of ₹1,600 crore from air conditioners with a 15 per cent market share this year with the launch of the Wi-Fi range.’’
Pegged between ₹35,000 to ₹41,000, the Wi-Fi range of split air-conditioners are being manufactured at Videocon’s Aurangabad plant and will also be exported to West Asia and the Saarc nations.
It has already assigned ₹60 crore for R&D spends for this range and has assigned another ₹45 crore towards advertising and marketing spends this summer for the category.
With 6,000 dealers and 586 after sales franchises, Videocon Industries is also tapping into the online space by selling through its own site as well as other portals.
“Consumers like to touch and feel while buying big ticket items like air conditioners. We expect online sales to contribute between 3-4 per cent of our sales turnover,’’ added Bakshi.
However, Videocon is low in the pecking order of the 4-million-unit air conditioner segment, with Voltas as the leader with a 20 per cent volume share followed by LG at 15 per cent share.
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