Air-Conditioner Makers Look At Sales Lift From Early Summer

Air-conditioner (AC) makers are betting on the early onset of summer to boost sales, with firms like Carrier Midea, Panasonic, Daikin, LG, Godrej and Samsung eyeing up to 30 percent growth.

Some companies are also hoping that the consumer durable segment, which is steadily recovering from the impact of demonetisation, will benefit from their AC sales with the early advent of summer.

"Compared to 2016-17, AC industry sales are expected to rise by 15-18 percent in 2017-18. This is mostly due to the early onset of summer," Panasonic India Business Head - AC Group Mohammed Hussain told PTI. Panasonic India is targeting a 30 percent growth in the air-conditioner segment with around 3.5 lakh units translating into a market share of around 10 percent, he added.

Rival LG India targets a growth of 30 percent. “Overall, the momentum is quite positive,” said LG India Business Head (AC) Vijay Babu.

The early arrival of summer is also proving to be a blessing in disguise for companies like Godrej Appliances which had taken a hit from demonetisation in its other product categories.

Godrej Appliances Product Group Head AC Anup Bhargava said the consumer durables industry had a good run this fiscal, clocking 26 percent growth in the first eight months, riding on good monsoon and Seventh Pay Commission till demonetisation was announced in November. "Since February, we have started seeing signs of recovery. The early summer months will be very crucial in bringing the industry back to a strong footing," he said.

Rajeev Bhutani, Samsung India's vice president of consumer electronics said, "This year has seen an early onset of summer and we are already seeing a considerable demand for Samsung ACs. Consumers are looking for energy-efficient products, and our new air-conditioners have been designed to suit their needs."

AC makers expect North India to remain the growth driver.

"With the summer season setting in from week four onwards (in March), we are expecting the region to pick up in terms of sales performance," Carrier Midea Managing Director Krishan Sachdev said.

At present the northern region accounts for the largest share in the AC market in India with approximately 35-40 percent followed by South, West and East, Panasonic's Hussain added.

The Indian residential AC market is around 5 million units with a penetration of around 4 percent. it is expected to close this fiscal around 5.5 million units with a growth rate of 15-20 percent from the previous year.

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