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Amitabh Tiwari in Calcutta on Saturday. Picture by Kishor Roy Chowdhury |
Calcutta, April 23: The pleasant April weather has affected the sale of air-conditioners, prompting LG to cut production to prevent the piling of inventories. LG Electronics has a 28 per cent market share in air-conditioners.
“From a double production shift, we have come down to a single shift. April has so far let us down with the weather being unexpectedly pleasant. In April, LG has slipped 18 per cent, while the industry as a whole decelerated to 15-17 per cent in air conditioners,” said Amitabh Tiwari, sales head of LG Electronics India.
LG has a capacity to produce 14 lakh air-conditioners per annum. LG has two plants in Pune and Noida.
“Last year, we sold around 9.5 lakh units. This year, while our target was to sell 12 lakh units, we would be happy if we are able to sell only a lakh more than last year. So far, in April we have sold 83,000 units compared with 2.4 lakh units in the same period last year,” he said.
However, LG is not mulling a price cut to woo consumers. “Dropping prices now would mean cheating our dealers who still have inventories. Any call on price reduction will be taken post May,” Tiwari said.