Currently, the South Korea-based LG Electronics is the market leader in the segment with a 25-per cent market-share. The Tatas have a 26-per cent holding in Voltas.

Voltas officials say the sales of air-conditioners zoomed by 60 per cent during the period January-December 2002 due to the unprecedented increase in the mercury levels as well as a latent demand from the residential segment.

Voltas, which had a market-share of 7 per cent in fiscal 2001-02, has recorded extraordinary growth and grabbed the No 2 slot with a market-share of 11 per cent in the domestic air-conditioner market.

"This growth was orchestrated by using a multi-pronged strategy of superior product offering, brand enhancement through integrated communication, service of the highest standard and expansion of the distribution channel. A new sub-brand called Vertis was backed by a Rs 10-crore advertising campaign. In addition to Vertis, 1.0- and 0.75-tonne compact room air-conditioners were also launched under the sub-brand Vectra," the officials add.

During 2002-03, the market-share of Samsung increased by 2 per cent while Hitachi''s market-share dropped to 10 per cent from the earlier 11 per cent. The other brands like National registered 0-per cent growth in market-share while Carrier''s share dipped by 2 per cent.

The officials say Voltas plans to tap the first-mover advantage with a slew of new products. The company plans to sustain the thrust on enhancing brand equity with increased allocation towards marketing initiatives and marketing communication.

"An expenditure of Rs 18 crore has been earmarked for 2003-04. The company plans to continue its focus on the household segment, which is estimated to grow much faster than the institutional segment at a CAGR [compounded annual growth rate] of 27 per cent for the next three years," they add.

In order to meet the demands of new emerging markets and increasing customer expectations, Voltas plans to introduce a range of new products in window and split air-conditioners. "It is expected that these products would help Voltas grow by over 50 per cent in the coming season," the officials sum up.