Godrej aims to double air conditioners sales

New Delhi, Mar 8: The appliances division of the 100-billion-dollar Godrej group aims to double sales of its air conditioners to 1.5 lakh units this season, even as the company will launch 25 new models of ACs during the year, phasing out the existing 18.

With a Rs 10-crore-budget for this summer, Godrej and Boyce Mfg Co Ltd -- which enjoys a 4.5 per cent share of the 17 lakh units AC market -- will mainly focus on its high-end split ACs.

''With the split (high-end) segment outperforming the window AC market, we will mainly focus on the splits. This will comprise 60 per cent of the total AC sales targeted at 1.5 lakh units during the season,'' Godrej Appliances Vice President (Sales and Marketing) Kamal Nandi told newspersons here today.

With the prices of split ACs dropping fast, the company will leverage the decreasing gap between the windows and splits.

''Splits being in the higher end of the market, is the more desirable AC. With the recent fall in its prices, the gap in the two segments is around Rs 3,000-5,000. People are readily moving towards the split segment,'' he said while launching the company's new model of split ACs.

Out of the 25 new models to be launched during the year, only eight would be in the window AC segment, he said.

Godrej and Boyce, which entered the AC segment a year ago, clocked sales of 75,000 units in 2006, of which majority 52 per cent were splits.

This year the appliances division is looking at a sales ratio of 60 versus 40 with the split segment growing by almost eight per cent, Mr Nandi said.

The company, which is undergoing a brand make over with the launch of new models in the segment, has also roped in Bollywood actress Priety Zinta as its ambassador for all its products including air conditioners and refrigerators.

The new television commercial (TVC) will be on air around 15 or 16th of this month.

Godrej and Boyce launched the 'eon' range of refrigerators in September'06 and its market share within three months grew from four per cent to 16 per cent at present in the frostfree refrigerator category, Mr Nandi said.

The company is looking at launching a sequel of the 'eon' range of refrigerators this summer that would harp on value-additions in terms of features and convenience.

Godrej and Boyce, at present, operates within five categories such as microwaves, ACs, refrigerators, DVDs and washing machines.

UNI