Samsung India eyes smaller towns, 50 percent growth
Chennai Jan 29 : Samsung India Electronics is planning to increase sales of its split air-conditioners, refrigerators by 50 percent and expand its distribution network in smaller cities, a senior company official said here Tuesday.
"We plan to increase the sales of our split air-conditioners and refrigerators by 50 percent this year. Our share in the split air-conditioner market is around 13 percent," K. Mahesh, vice president (Home Appliances) of Samsung India, told reporters.
The company launched 29 new models of split air-conditioners and 26 new models of digital inverter, frost-free refrigerators for the current year.
According to Mahesh, the company's share in the air-conditioners market slipped last year as it exited the window air-conditioner segment to focus on split air-conditioner segment.
"We are number two in the split air-conditioner segment in the market," Mahesh said.
He said the market for window air-conditioner is only in North and East whereas in South and West it is almost non-existent.
According to Rajeev Bhutani, head, Home Appliances, the five-star rated energy efficient air-conditioners are expected to contribute 30 percent of the total air-conditioner sales for the company.
He said the company's air-conditioners are priced in the range between Rs.23,100 to Rs.60,990.
In the refrigerator segment, the frost free segment is expected to contribute 35 percent of the total sales.
With the launch of new frost-free models, Samsung India's total frost-free refrigerator range goes up to 45 models in the price range between Rs.17,150 to Rs.179,000.
Bhutani said premium products like frost-free and split air-conditioners expanded the market last year.
Samsung India's plant at Sriperumbudur has a capacity to roll out 1.2 million refrigerators and 450,000 split air-conditioners. The company imports refrigerator compressors from South Korea.
On the distribution side, Mahesh said the company will be increasing the network by another 380 outlets to around 600/700 outlets this year.
He said bulk of the new distribution network will be in the tier II and III cities.