The Hindu Business Line : Sanyo, ETA Star Appliances tie-up

Chennai, April 29 Sanyo Electric Co of Japan has tied up with ETA Star Appliances to market a range of split air-conditioners in India. The launch of washing machines and frost-free refrigerators may follow a little later this year.

The air-conditioners are priced Rs 30,000 and above. There are six models available in tonnage ranging from 1 tonne to 2.5 tonne.

Speaking at a press conference here to announce the launch and tie-up, Mr Takashi Hirao, Chief Regional Officer – MEA & India and Chairman, Sanyo Gulf FZE, said the company aimed to increase turnover in India to $70 million in 2011. For the year ending 2008, Sanyo’s business in India stood at $8.2 million.

Mr Hirao, who is responsible for Sanyo’s business in 79 countries, said his challenge was to double the business in the West Asia-Africa-India region by 2010 to $400 million. Marketing plans for India have not yet been firmed up but the company plans to use up to 3 per cent of the revenue on it, he said.

Growing market

Mr M. Ejazuddin, CEO and Director, ETA Star Group, said they aimed to earn Rs 100 crore in the first full year of operations. About Rs 8 crore is being earmarked for marketing. The growth in the split AC market is 21 per cent while the window AC market is growing at just 4 per cent, hence the decision to launch only split ACs, he explained. The penetration of air-conditioners is less than one per cent in India, he said, adding that the opportunity was huge. The bulk of the sales were in the lower segments but with consumers upgrading, there’s potential in the mid-market and sub-premium ranges, which was where Sanyo fit in, he said.

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