Scorching heat renews demand for air-conditioners

Source: The Hitavada      Date: 06 Apr 2018 10:30:35


Business Bureau,

WHAT better way to beat the scorching summer heat than buying an air-conditioner to stay cool. Well, this is exactly what people are doing to stay cool this summer. With the mercury crossing the 40 degree Celsius mark in the city, demand for air-conditioners has increased in a big way.
The surge in demand is mainly coming from the first-time buyers and people upgrading to the new devices. The air-conditioner market is expected to register a robust growth rate of 25 per cent compared to the pervious year in Vidarbha.

“This year, the air-conditioner market is anticipated to grow at a phenomenal pace. We are expecting the demand to rise by more than 40 per cent at our showroom, higher than the industry average which is slated to be 25 per cent,” said Nihar Taori, Director of Taori Marketing while speaking to The Hitavada.

The first-time buyers were switching over from room coolers to basic range of air-conditioners with inverter technology as it was more convenient, required less water, less maintenance, lower energy consumption, came with various hi-tech features like air purification, WiFi and were hassle-free and easy to use. Solar power ACs were also available. Easy finance option at zero per cent interest rate from leading finance companies had helped push sales to dizzy heights, Taori said.

Customers, who already possess air-conditioners, are upgrading to the top premium range and looking for more durable machines with higher cooling capacity, low maintenance, and less energy consumption. This buying trend can also be seen in Tier II, III, IV and V towns.
The 1.5-tonne basic range of inverter air-conditioners start from Rs 22,000, while the premium range begins from Rs 38,000.

He said that Nagpur was fast transforming into a metropolitan city with the kind of infrastructure development and economic activities taking place. A good chunk of business was also coming from commercial establishments. The commercial establishments mostly used tower ACs and VRV ACs.

Vedprakash Jaiswal, Director of Vedoms said that the demand for air-conditioners were expected to be strong this year. “We are looking forward to a growth of more than 25 per cent,” he said. Rising income levels and the aspiration to own an AC were driving the growth. Furthermore, some people bought ACs as a status symbol. There were more than 30 domestic and foreign brands operating in the country. Samsung, LG, Voltas, Blue Star, Daikin, Panasonic, Hitachi, Mitsubishi, O General, Carrier, Whirlpool, Haier, IFB, etc., were some of the most sought-after and famous brands available in the market.

Vikram Choudhary, Area Sales Manager, Vidarbha of Blue Star said that the AC market in the country was set to grow at a great pace in the near future. The penetration level of ACs was only 4-5 per cent in the country. “We see demand coming from smaller cities and towns due to rising income levels”, he said. Blue Star had captured a market share of about 15 per cent and sold about 7,000 units per annum in Vidarbha. The AC industry registered a turnover of Rs 14,000 crore in the country during 2017.

Kamlesh Gupta, Marketing Manager of Voltas said that the demand for ACs was set to shoot up by 20-25 per cent in Vidarbha. He said that Voltas was one of the top three selling AC brands in India. “This year, we are confident of selling more than 6,000 units in Vidarbha compared to 5,000 units last year”, he added.