For manufacturers of air conditioners (ACs), the summer of 2010 is turning out to be a bumper money spinner. Thanks to the mercury levels touching a record high, AC makers are laughing their way to the banks with sales zooming by a whopping 100 per cent compared to last year.
According to Pradeep Bakshi, senior vice-president and deputy chief operating officer (COO) of Voltas Ltd, there has been an unexpected rise in the sales of ACs across the country this year compared to the previous year.
"In February, there was 100 per cent hike in AC sales compared to the same month last year. With the rise in temperature, sales too, increased. In March, our sales grew by nearly 150 per cent. In the first 15 days of April, our sales have been up nearly 250 per cent. On an average we expect the percentage rise to be 100 per cent this season," he said.
Voltas has a sales target of one million units this season, added Bakshi. Last year, the company had sold five lakh units during this period.
"We have launched an extensive range of 50 ACs for the 2010 season, which includes fresh updates (models). Earlier in the month of February, demand was coming only from the western and the southern markets, but now as the heat has increased, we are getting more demand from the northern centres," he said.
Companies such as LG Electronics India, too, are running their production capacities at the full in order to meet the demand, which has nearly doubled in a year.
For AC manufacturers, April-May is the period of highest sales. LG is aiming to sell 12 lakh units this year, of which four lakh is expected to move in April.
With the Central government and the Bureau of Energy Efficiency (BEE) making it mandatory for manufacturers of certain electronic products, including ACs to star-rate their products based on their power-use efficiency, there has been a growing demand for higher-rated products.
All top brands, including LG, Samsung, Whirlpool, Voltas, Carrier and Godrej, have switched to starrated products.
Ajay Mathur, director-general of BEE, stated, as per their research, there is a waiting period of three to four weeks for products with five-star ratings since these are considered products with the most power-use efficiency.
Samsung, which saw up to 25 per cent growth in AC sales in April, is selling only five-star-rated refrigerators. Godrej Appliances witnessed up to 30 per cent growth in AC sales last month.
According to a senior official of Mumbai-based Vijay Sales, every additional star-rating for ACs cost between Rs 1,000-2,000 depending on the model.
"Appliance firms say the premium on higher star-rated products are more than compensated for by lower electricity bills," he said.
The official added that there has been a growth of star-rated products between 40-50 per cent till June this year.
"The demand is being driven by residential customers, who in order to get relief from the severe heat, are buying the ACs," he said.
Source:http://in.news.yahoo.com
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