Micromax aims to achieve 10-15% market share for ACs in 3 years
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New Delhi: Micromax Informatics Ltd, better known as a maker of mobile phones, has added new models to its range of air conditioners, a market it entered last year.
The company will sell seven split ACs and one window AC and plans to launch a marketing campaign this month to pitch them to consumers. Micromax introduced four AC models in a pilot phase in June.
The ACs, priced between Rs21,000 and Rs35,000, are in the value to mid-premium segment, said Rohan Agarwal, vice president of consumer electronics at Micromax.
Micromax is aiming to sell 200,000 units by March 2018 and expects to achieve 10-15% market share for ACs in three years. The products will be sold both offline and online, and third-party service centres will be used to provide after-sales service.
Micromax has a distribution network of 4,000 sales touch points and over 400 service centres across India.
Mint reported in the June last year that Micromax will manufacture ACs at a facility in Uttarakhand and was planning to invest Rs200 crore in the category.
“The manufacturing unit has a capacity to produce 3,000 units per day. Over the last one year, utilization was about 20%,” Agarwal said.
The move is part of a larger push by the country’s second largest phone manufacturer (market share in terms of units sold) to cement its position in the consumer durables market. The company started selling tablets in 2010 and ventured into the televisions space in 2012.
Micromax is also planning to introduce air purifiers and washing machines. “These products are still in the development stage and should be launched later this year,” Agarwal said.
Earlier this week, Micromax announced its entry into the accessories segment. The company will introduce sound bars, bluetooth speakers, earphones and power banks. Agarwal said the highly unorganized accessories market is currently estimated at $1 billion.
According to Micromax, quoting market research firm GFK, the AC market in India is expected to expand at a compound annual growth rate of 4.5% till 2020, when sales will reach 5.5 million units. As per figures from 2015, the segment was dominated by Voltas (16% market share), LG (13.4%) and Hitachi (9.4%).