Thomson ventures into ACs, aims to capture a 10% market share by 2025

Right ahead of the summer season, consumer electronics company Thomson has forayed into the air conditioner category. The company has been selling washing machines and air coolers in the Indian market and has now launched split ACs with prices starting at Rs 26,490. The air conditioners will be available on the e-commerce platform Flipkart.

“India is a fast-growing and quickly adapting market. The penetration of technology and eagerness for newer products is deep. With the launch of Thomson ACs, we want to become a more affordable option for those looking to invest in ACs for the first time or those looking for more options for new purchases. We see that the market has much space for a brand like ours,” Avneet Singh Marwah, CEO, Super Platsronics Pvt. Ltd. (SPPL) and India Brand Licensee of Thomson told Business Today.

Thomson has launched convertible split ACs in 1 tonne and 1.5 tonne categories and will be available under 3 star and 5-star ratings. The company’s fixed speed 1 tonne 3-start AC has been priced at Rs 26,490 and the top-of-the-line Split Inverter 1.5 tonne 5 star for Rs 33,999. The target audience for our 1 tonne AC, which is at the entry price point, are first time buyers who are looking to purchase affordable air conditioners. The target audience for its 1.5-tonne ACs under the 3-star grading is the premium and affordable segment catering to the middle class and upper-middle class. And, the same under the 5-star grading is a more niche customer base. Given its other product categories, Thomson has been in the market for a long now and claims to have focused on after-sales network including over 700 centers offering door to door help in Tier 1, 2, 3 towns and cities.

 Marwah further added, “We have always communicated that Thomson will be expanding further by adding more product categories under the brand in India. We follow a certain brand ethos, that is making premium technology gadgets at affordable prices. It has worked well for us when we launched our TVs, smart TVs, washing machines and now we are bringing the same ethos for the launch of our ACs too. We are confident of our customer base, and are looking to add further value to their lives with this launch. We have established a strategic partnership with Amber Enterprises India Limited for the same. And intend to be amongst the top 3 online selling brands for ACs and plan to capture a market share of 10 per cent by 2025.”

Claiming to offer something for everybody, the brand seeks to deliver upon its promise to provide ‘Friendly Technology’ at a reasonable price. The company will widen its portfolio and product categories and move towards consolidating its position in India in both large and small appliance categories. Additionally, Thomson plans to open two more factories in the next two years, with one unit established in Hapur, and the other’s location to be finalised soon.

The Hapur factory will be operational by the end of the first quarter this year, with the hiring of over 5,000 skilled labour in months to come. The Indian manufacturing sector is expected to grow by 30 per cent this year; and Thomson plans to achieve this indigenisation in view of the production-linked incentive (PLI) scheme by the government for air-conditioners, which has encouraged it to invest and create a reliable component ecosystem.