Voltas topples LG to be No. 1 in AC business

The Tatas-owned Voltas has taken the top slot in the Indian airconditioner (AC) market, overtaking Korean white goods giant LG that has dominated the business for over a decade. Latest data from market research firm GfK Nielsen Retail Audit showed that Voltas had a shade over 20% of the pie in September, based on sales at multi-brand and exclusive brand outlets. This was marginally ahead of LG’s market share of 19.9%. This is perhaps the first time in recent years Voltas has taken the pole position across the AC segment. However, for the first half of the financial year (April-September 2014-15), LG continues to lead with a share of 20.5%. Voltas follows with a share of 18.9%.
Samsung, the other big player in the AC market, is a distant third. The brand, which has exited the windows AC category, had a share of 12.8% in September and finished the first half with a share of 13.7%, the data showed. This would perhaps be one of the few consumer categories where either of the Korean chaebols are not at the top, considering their popularity among Indian buyers. The AC market accounts for sales of 3.2 million units annually but has been witnessing tepid growth over the last two years.
The penetration of ACs stands at 3-4% in the Indian market.
LG said it is working towards protecting its market share leadership.
“Today there are more than 50 brands trying to sell their ACs (more than 70 brands are registered for star-rating labelling at Bureau of Energy Efficiency). With multiple players joining the product categories, our primary objective remains to sustain our leadership position and strengthen our business share across channels,” said Saurabh Baisakhia, business head for ACs at LG India.