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OCT 01 2014

'Power shortage affects growth of AC market in UP'

  • Economic Times, ET Bureau / Hyderabad
  • Created: Wed 01st OCT 2014

The shortage of power in Uttar Pradesh, especially in smaller towns, is a key reason for the muted growth of the air conditioner (AC) market in the state. Low frequency of power supply is another factor contributing to the stunted growth of the market.

"The quantity and quality of power supply have a strong impact on the AC segment in any region," consumer electronics major Carrier Midea India Managing Director Krishan Sachdev told Business Standard here.

He said the Uttar Pradesh government had unveiled major plans for augmenting power supply in the next couple of years. "I am confident that the AC market would grow exponentially in Uttar Pradesh concomitant to the improvement in the quantum and quality of power supply."

Uttar Pradesh is targetting to provide 22 hours power in all urban areas and 16 hours in the rural areas by 2016-end, with augmented power availability through different sources.

Carrier had clocked 40 percent growth in the AC segment during 2014, compared to just 15 odd per cent in eastern Uttar Pradesh.

"We are expanding our retail footprint in India. Now, we have a sales network of 2,000 outlets, up from 1,100 last year," Sachdev said.

Meanwhile, the window AC segment is giving way to split AC, though window AC continues to hold strong in north India. "North India accounts for almost 40-45 per cent of the window AC sales. Collectively, North India comprises 35 per cent of the total AC sales in the country," Sachdev said.

After 2010, when the AC segment posted good numbers, 2014 has so far been fairly good for the market.


Uttar Pradesh TOTAL Rural Power Consumer India

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