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When the country’s most premium brand announces a slew of new products in the market, well in advance of the fast-approaching Indian summer, it is time to sit up and take note of what the air-conditioner market is headed for.

“Except for a few cities, most parts of India experience hot summers. Every year we see the average temperatures going up and air-conditioners have to keep changing their specifications to take these vagaries into account,” informed K.C. Poovaiah, Head of Sales & Marketing, Fujitsu General (India) Pvt. Ltd. He says that even cities like Bengaluru where, once upon a time even ceiling fans were hardly used, air-conditioners are turning into a must-have option during most parts of the year.

Etsuro Saito, President & Representative Director, Fujitsu General Ltd. Japan, told BE, “The Indian room air-conditioner market is already crossing the seven million units mark this year and growing at 10 to 12% annually.”

Fujitsu India has just launched a slew of new models of inverter split air-conditioners. According to Poovaiah, “These new models are designed to deliver cooling even at 55°C and have wide operating voltages range (155 to 280 volts). These models come with the Cooling Power for Tropical

Application (CPTA) technology which enables the products to deliver cooling over 80% of its rated capacity even at 46°C which means they have low derating effect.”

He further elaborated, “These technologically innovative products will definitely enrich the consumer experience by taking the cooling performance to the next level. Currently, the brand commands a price premium of over 50% and we would like to reduce the end consumer prices by about 10% to make the brand more affordable. There are 24 models ranging from `25,000 to `150,000 and we are targeting a market share of 6% in the next two to three years.”

Saito informed that the Indian situation presented them with a good opportunity to increase the market share by focusing on the lower end models which have a greater acceptability in the Indian market.

INTERVIEW

K.C. Poovaiah

Head of Sales & Marketing spoke to BE.

Q. What happened to the joint-venture arrangement that Fujitsu general had with ETA in India?

A. It served us to establish a market when there were tax holidays. ETA had an assembly plant in Pondicherry. Most of the components were imported from Japan or Thailand. Once the benefits expired and simultaneously the India government entered into a FTA with Thailand, we found it more beneficial to import the air-conditioners from our plant in Thailand. Hence, the JV was dissolved, and Fujitsu General India was established.

Q. General has always been in the premium segment of the air-conditioner market. How will you gain more market share, going forward?

A. The brand commands a price premium of over 50% and we would like to reduce the end consumer prices by about 10% to make the brand more affordable. There are 24 models ranging from Rs. 25,000 to Rs. 150,000 and we are targeting a market share of 6% in the next two to three years. This year, we will introduce three new models in the 3-star category with a lower price range.

Q. In an import-dependent product line, how do you ensure prompt after-sales service and replacement of parts?

A. We are well-stocked of all spares and we have a very strong all-India network of service set-up. We have never suffered in our after-sales support and that is very essential in a highly competitive air-conditioner market.