Voltas eyes 20% rise in AC sales revenues in FY'14
New Delhi: Tata group firm Voltas Ltd on Thursday said it expects revenues from air conditioners to increase by 20 percent in the current fiscal as it aims to clock 10 lakh unit sales.
"We have been growing at around 20 percent in the last few years and thus we are confident of achieving such kind of growth in the current fiscal too," Voltas Ltd Unitary Products Business Group (UPBG) Chief Operating Officer Pradeep Bakshi told reporters here.
The company's UPBG vertical posted a turnover of Rs 1,560 crore in 2011-12.
Bakshi added that the company sold around eight lakh air conditioning (AC) units in the last fiscal and is aiming to market around 10 lakh units in the current fiscal.
The company, which introduced a new range of 'All Weather' ACs today, is looking to increase its foothold in the smaller cities and towns further in order to achieve growth targets.
"We know that economic conditions are not that great. But in order to achieve the desired growth, we are looking to penetrate more into tier II and trier III towns," Bakshi said.
He added that the company currently gets around 55 percent of its AC sales from smaller towns and cities.
As part of increasing penetration, the company is also aiming to increase its distribution network in the country.
"We currently have around 6,000 distributors across the country. We are aiming to end this year at more than 7,500 of such touch points," Bakshi said.
When asked if the company is looking to increase product prices in the current fiscal, Bakshi said: "The company would look to maintain current prices, despite commodity prices going up."
The company, which sells items like ACs, water dispensers, commercial refrigeration products under its UBHG business, is also looking to invest considerably in its marketing campaign.
"We have earmarked around 60 crore for marketing initiatives in the current fiscal," Bakshi said.