March 2, 2017 2:00:42 pm
Micromax Informatics has expanded its foray into consumer electronics, and launched a new range of Air conditioners. Micromax is introducing two AC brands in the market: Wave and Aura and will position itself between the value for money and mid-premium brands in this segment.The range comprises of seven split ACs and one Window AC, and the company will initially focus on the North market, followed the South. It plans to touch 4000 sales point in India, and its ACs will be present in online and offline channels.
“We started with LED TV nearly 4 years back, which gave us confidence about the consumer electronics category. The reason why we’ve chosen air conditioners is that we see a lot of scope in the market and in the industry. The penetration of ACs in India is only 4 per cent, and we see this going up in the market in the next ten years,” said Rohan Agarwal, Vice President, Consumer Electronics, Micromax Informatics Ltd in an interaction with IndianExpress.com.
Micromax’s new AC range is priced between Rs 21,000-Rs 35,000. The company says the major focus will lie on split ACs, although the range includes 1.5 tonne window AC as well. Micromax Air Conditioners come with ‘ECCO Blu Technology, which protects the condenser coil from humidity and moisture. There’s also two-way drainage system and turbo cooling feature which ensures quick cool at high speed.
Micromax is providing a five-year warranty with first three free services. The company has tied up with over 400 service centres, and will also have its own Micromax Home Assist app to help customers get in touch with the customer care quickly. Micromax’s new ACs are made in India in Uttarakhand.
Commenting on why Micromax is entering this space, Agarwal pointed out how the company did a pilot launch in 2016, and got a good response from consumers. However, Micromax is looking at a gestation period of about three years, before it makes a significant dent in the AC market.
“The gestation period in the LED business was also the same, and we’ve captured about 10-12 per cent of that market. So yes we’re looking at a similar time period of ACs as well,” said Agarwal. He pointed out that last year the LED business saw Rs 1,000-1,500 crore for the company.
“We’ve done an investment of around Rs 200 crore for setting this up. We’ve viewing this as a an important category for Micromax. Our success will determine how we are accepted by the consumers as a brand in the consumer electronics category,” added Agarwal.
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