Notwithstanding the challenges in the unitary cooling segment in the quarter gone by, both companies have all that it takes to bolster their fundamentals in the long-run.
Tailwinds such as low penetration of ACs in India, high entry barriers, increasing inverter AC sales, and higher disposable incomes are expected to augur well for the company.
The ACs come in 14 models across three categories--Inverter Split AC, Fixed split AC and Intex Window AC, which are available at an affordable price range of Rs 19,000 to Rs 35,000, Intex Product Business Head Nikhil Garg told reporters here.
Indian consumers will now have to pay less for their LED TVs, thanks to the steep appreciation of the domestic currency against the US dollar. However, other home appliances are dearer.
In an interview to CNBC-TV18, Nilesh Gupta, Managing Partner of Vijay Sales spoke about the sales outlook and inventory picture.
In an interview to CNBC-TV18, Achal Bakeri, CMD of Symphony said that summer is expected to be harsh this year.
Summer will bring respite to the company‘s cooling appliances especially air conditioners, said Pradeep Bakshi, President & COO â€“ Unitar Products Business Group & Mining & Construction Equipment division at Voltas.
Says the company will face competition in its core business area, which are likely to put pressure on margins; observes the need to ramp up inverter ACs to cash in on LG‘s exit too.
The company introduced ACs as a pilot project last year in June-July (2016) and this will be the first year to see a complete line-up of ACs from Micromax, he said.
The air conditioners are in range of tonnage from 0.7 TR to 4.5 TR across 2-star, 3-star and 5-star models, as well as 3-star and 5-star inverter models.
"In tier I and tier II markets, about 30 percent of sales are done in cash. In tier III, tier IV and tier V markets, about 60 percent of business is done in cash. There is going to be a short-term that is Q3 impact on our sales of products on account of the demonetization", Vir Advani, MD of Blue Star told CNBC-TV18.
About 150 nations meeting in Rwanda agreed a global deal to reduce greenhouse gases used in refrigerators and air conditioners, a Rwandan minister announced to loud cheers on Saturday, a major milestone in combating climate change.
Credit Suisse (CS) has maintained an outperform rating on Voltas and raised its target price to Rs 400. The brokerage house believes the company can deliver strong compounding growth in a high-growth AC market.
Voltas shares gained more than 3 percent intraday Monday after a media report indicated that demand for air conditioners increased due to high temperatures.
"The company intends to continue its aggressive thrust in the room air conditioners market and aims to gain a market share of 12 per cent in financial year 2016-17 in terms of value," Blue Star Executive Director and President (AC&R Products Business), B Thiagarajan, told reporters here.
Deepak Shenoy, Founder of Capitalmind.in is generally positive on the airline industry but picks indigo as his top bet. He believes lower crude coupled with increasing passenger traffic would help keep up the momentum in the sector.
The new unit will double the production of High Volt Air Conditioners from the present five lakh to one million, once it became operational by December 2017, he said, adding the total production in both the units will touch 1.5 lakh per year, as the company produced different types of ACs, both residential and commercial.
The air conditioner services provider has raised Rs 5.77 crore through public issue of 28.08 lakh equity shares, which will be used for long term working capital requirement and investment in subsidiary.
Currently, mobile sales contribute 7-8 percent to the overall revenues of the South Korean electronics major in India. As of now, the company sells around 13 models in the country.
Looking back, CEAMA President-designate, and Managing Director of Panasonic India and South Asia, Manish Sharma told PTI: "It has been a stimulating year for the industry."
Consumer durables maker Godrej Appliances, a part of Godrej & Boyce Mfg Co expects its sales to grow around 25 percent year-on-year in 2013-14 (April-March), a top company official said on Monday.
Window ACs, which are facing poor demand and low sales mainly due to strong response for split air-conditioners, are likely to go out of industry in the next three years, a top official of AC manufacturer Blue Star said today.
Consumer durables firm Haier will start manufacturing washing machines, air conditioners and water heaters at its own plant by 2014 instead of outsourcing as it looks for about six-fold jump in revenues to up to Rs 7,500 crore in the next five years.
Air conditioning and refrigeration products maker Blue Star says the macro economic environment remains challenging and project delays continue across sectors, and so it will focus on quality of projects rather than just growing volumes this year to maintain profitability.
The sweltering heat may be making life difficult for others, but airconditioner manufacturers are quietly smiling with sales growing at double-digit rate in the last couple of months.