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Samsung India to re-enter windows and fixed speed split AC

The Korean giant is re-entering mass air conditioners in India from next year with an aggressive pricing strategy.

, ET Bureau|
Last Updated: Dec 12, 2019, 11.34 PM IST|Original: Dec 12, 2019, 05.37 PM IST
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KOLKATA: Samsung India is re-entering mass air conditioners in India from next year with an aggressive pricing strategy to regain lost market share after it exited these products like window and fixed speed split ACs a few years ago to focus only on the premium AC segment.

Samsung at present only sells the premium inverter split AC in which the compressor runs continuously leading to better ambient temperature and lower energy costs. In contrast, the compressors switch on and off in a fixed speed AC, which leads to higher electricity bills. Fixed speed ACs are much lower priced.

The Korean giant has restructured the AC business by forming a separate division and has appointed senior vice-president of consumer electronics business Rajeev Bhutani as the chief of this division. Bhutani said this new division has merged room AC business from consumer electronics and system AC from business-to-business vertical to give a dedicated focus.

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Samsung will also roll out 300 exclusive stores for the AC business, which will sell both room and system AC, he said. “We will use the sales team of both consumer electronics and B2B to rebuild the business. Our goal is to become the market leader in air-conditioners by 2022 and double our business in the next two years,” he said.

Samsung lost out in the AC segment due to its exit from the value and entry products, even though the window and fixed speed split AC are not growing in India. These two categories account for over half the market by unit sales, whereas by value, the contribution is around 40%.

The premium inverter AC is currently growing and accounts for rest of the market. Tata-owned Voltas leads the Rs 15,000-crore AC market while LG Electronics takes the second spot, growing at a CAGR of 15% in the past 5 years.

Bhutani said company will have the entire portfolio of AC, right from the entry mass segment to premium, and plans to expand AC service infrastructure by 50% to cater to increased business. Samsung is the largest player in refrigerator, microwave oven and TVs in India.

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