Home grown consumer electronics maker Intex Technologies has said it is aiming to corner around 6 percent share of the air-conditioning segment in the next two years and the company is betting on Tier II and III markets with its competitive pricing.
According to a PTI report: The Delhi-based company has priced its range of products 15 to 20 percent lower than the established players to make it more affordable. Intex, which had forayed in the AC segment last March, is encouraged by the response it has got in last one year and is expanding its retail footprint by adding 25 percent more stores this year.
“We have tested the market now. We have encouraging response in last one year and our products are accepted well in the trade and consumers as well,” Nidhi Markanday, Director, Intex Technologies told PTI.
“In the coming year FY 2019-20, we are eyeing around share of 6 per cent of the total market in the air-conditioners,” she was further quoted by PTI as saying.
Intex has a range of 20 ACs which includes 15 split models and 5 window models priced between Rs 18,000 to Rs 40,000. According to the experts, the Indian room AC market is estimated be around 4.5 million units and has a Y-O-Y growth rate of 15-20 percent.
“We always give good products to customers at affordable pricing and we are replicating this in air-conditioner also. Our products would be 15 to 20 percent lower than the other established brands,” Markanday told PTI.
Besides, Intex has also tied up with financial institutions to provide financing options to its buyers. It is also giving extended warranty of up to five years on its products.
“Intex is a brand which is very well accepted in Tier II & III towns and for ACs, we would be focusing there only,” she was furthqr quoted by PTI as saying.
Intex currently has a dealer base of around 10,000 stores for consumer durable space and has plans to add 25 percent by the end of this year. Besides, the company has also 130 stores of Intex Smart World, which are its exclusive stores.
“By the end of this year, we are aiming to have 200 stores,” Markanday told PTI.
Intex has five manufacturing facilities – one at Jammu and Baddi in Himachal Pradesh and three at Noida. It is also setting up one centralised manufacturing unit at Greater Noida Presently, the company is sourcing its entire lineup from OEM and has plans to start manufacturing in next two years. India’s penetration of room AC is less than three percent has enough room to grow. More than 20 companies are operating in this space.