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Neha Kaushik

NEW DELHI, Nov. 25

WITH air-conditioners showing the most promising growth in the consumer durables segment, Korean consumer durables major LG Electronics India has already chalked out its strategy for the next year.

Apart from launching a gamut of new products, the company will follow a different approach by identifying niche segments and targeting them individually.

A major thrust next year, for instance, will be the commercial air-conditioners segment. Says Mr Salil Kapoor, Product Group Head, Air-Conditioners Division, LG Electronics India, "In the earlier phases, our focus was primarily on retail and corporate sales of windows/split ACs. However, we are aggressively targeting building our market share in the commercial ACs segment. We aim to capture about 20 per cent market share in the segment in the next calendar year."

The entire range of commercial air-conditioners will be available from LG by December this year, which would include four models in ductables and three in cassettes. Though currently the moulds for these ACs are being imported from Korea, LG may commence manufacturing these here, depending on the market response.

At present the domestic commercial air-conditioners market is growing at about 8-10 per cent per annum, and the major players in the segment include Voltas, Blue Star and Carrier.

The company will also be coming out with customised products for certain high-growth segments such as telecom companies, bank ATMs and so on.

For windows and splits, LG will also launch products catering to different segments of the market. Says Mr Kapoor, "For instance, for the premium end of the market we have the Whisen range of air-conditioners. We will also launch a range of Internet-enabled air-conditioners for the premium-end."

Simultaneously, LG is also trying to address the needs of smaller markets. "At present, about 63 per cent of the total air-conditioners market is located in just seven cities. However, this year, we will try to strengthen our position in the smaller markets," says Mr Kapoor.

The company is targeting sales of three lakh units next year from the estimated two lakh this year, as well as better its market share by five per cent to 35 per cent next year.

Meanwhile, anticipating further demand, LG will soon begin manufacturing air-conditioners at a third facility to be located in Jammu. Currently, the air-conditioners are being manufactured at the facilities in Greater Noida and Guwahati.

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