After televisions, tech firm Micromax is now foraying into the air-conditioner category and expects the consumer durables vertical to contribute 20 percent to its revenues by December 2017.
The firm gets a lion's share of its revenues from handsets, has launched four models of split and window ACs, priced between Rs. 20,000 and Rs. 30,000.
"We had launched LED TVs two and a half years back and today are among the top 5 brands with about 10 percent market share... ACs is among the fastest growing categories in the segment," Micromax co-founder Rajesh Agarwal told PTI. Micromax wants to be an all-round player in the consumer electronics space, he added.
"We are launching 4 SKUs in windows (one) and split (three) ACs with 1.5 and 2 ton capacity. These will be manufactured at our facility in Uttarakhand," he said.
Micromax expects about 15 percent of its revenues to come from LED TVs and 5 percent from ACs by December 2017. The company closed FY16 with revenues close to $2 billion (roughly Rs. 13,350 crores). It expects to clock an overall growth of about 30 percent this year.
"This year, we expect to make about 50,000 units and next year, ramp it up to 200,000 units... South India (32 percent) and West India (28 percent) are major markets for ACs, followed by North India (28 percent) and East India (12 percent)," he said.
He added the company will use its existing distribution channels, including online sales. Online accounts for about 25 percent of the sales of its TVs and it expects a similar traction for the ACs, he said.
Agarwal added, "Micromax is evolving itself to be a leading consumer electronics brand in the next 2-3 years. The decision to foray in to newer categories is solely basis our strong positioning in the Indian market and the understanding of consumer demand and need. We have already established ourselves in the LED TV segment over the last two years and next 12 months will take us closer to establishing ourselves as a serious player in the AC segment as well as in the Consumer Electronics industry. With our range of products developed especially for Indian conditions, we aim to penetrate the market with a complete range of air conditioners that can improve the quality of life of consumers across the country."