Samsung India expects to outpace industry growth rate in AC segment this summer season

Ghufran Alam, Vice-President, Digital Appliances Business, Samsung India

With the early onset of summer and rising temperatures across the country, Samsung India is betting big on the air-conditioner segment and expects to outpace the industry growth rate. The consumer products major said its air-conditioner business witnessed 2x growth in the March quarter compared to the same period in the previous year. Amidst the volatile currency exchange rate and higher raw material costs, the company could also look at hiking AC product prices by about 3 per cent.

Ghufran Alam, Vice President, Digital Appliances Business at Samsung India told businessline that the firm is expecting to see strong growth in the air-conditioner segment similar to trends seen last year. “The industry is expected to record a growth in the range of 20-25 per cent. We expect to grow faster than the industry growth rate. In the March quarter, we saw 2x growth in the AC segment compared to the same period in the previous season. We expect this growth momentum to continue in the June quarter.”

19 new models

The South Korean consumer products maker on Monday said that it has launched 19 new models of Bespoke AI WindFree air conditioner range featuring advanced AI technology for personalised cooling experiences. These ACs offer ‘WindFree’ cooling, which disperses air through micro-holes to eliminate direct drafts and integrate with smart home systems for enhanced convenience and energy efficiency, it added.

Alam said the company has also expanded its distribution network and service network by 30-40 per cent over last year to cater to growing demand for air-conditioners in the country.

Many industry players have raised prices by 4-5 per cent this month due to volatile macro-economic conditions. “We are monitoring the increase in raw material costs as well as the impact of the adverse exchange rate. We are considering hiking prices by about 3 per cent,” he added.

Low penetration

The air-conditioner segment has emerged as one of the fastest growing segments for consumer appliance makers in recent times. “The air-conditioner segment still has very low penetration. Aided by rising disposable incomes, we are witnessing strong demand trends not just metros but also smaller towns and cities for ACs. This growth is also being supported by attractive consumer finance schemes,” he added. Samsung India claims it has 10 per cent market share as of March quarter and aims to further strengthen this share. 

Published on April 8, 2025