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Micromax enters the air-conditioner business and expects 20 pc increase in revenues by late 2017

Micromax has launched four models of split and windows ACs, priced between Rs 20,000 and Rs 30,000.

  • Updated: June 9, 2016 7:35 PM IST
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After televisions, tech firm Micromax is now foraying into the air-conditioner category and expects the consumer durables vertical to contribute 20 percent to its revenues by December 2017. The city-based firm, which gets a lion’s share of its revenues from handsets, has launched four models of split and window ACs, priced between Rs 20,000 and Rs 30,000.  “We had launched LED TVs two and a half years back and today are among the top 5 brands with about 10 percent market share… ACs is among the fastest growing categories in the segment,” Micromax co-founder Rajesh Agarwal told PTI.

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Micromax wants to be an all-round player in the consumer electronics space, he added. “We are launching 4 SKUs in windows (one) and split (three) ACs with 1.5 and 2 ton capacity. These will be manufactured at our facility in Uttarakhand,” he said. Micromax expects about 15 percent of its revenues to come from LED TVs and 5 percent from ACs by December 2017.

The company closed FY16 with revenues close to $2 billion. It expects to clock an overall growth of about 30 percent this year. “This year, we expect to make about 50,000 units and next year, ramp it up to 2 lakh units… South (32 percent) and west India (28 percent) are major markets for ACs, followed by North India (28 percent) and East India (12 percent),” he said.

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He added the company will use its existing distribution channels, including online sales. Online accounts for about 25 percent of the sales of its TVs and it expects a similar traction for the ACs, he said.

  • Published Date: June 9, 2016 7:30 PM IST
  • Updated Date: June 9, 2016 7:35 PM IST