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Case Code: CLECO002
Case Length: 6 pages 
Period: -  
Pub Date: 2015
Teaching Note: Not Available
Subject : Economics
Organization :-
Industry : Electronics & Electricals
Countries : -

Demand for Air Conditioner: Voltas Leap Forward in the Indian Market



This case is about the growing demand for ACs in India, and how Voltas was trying to tap the opportunities presented by the market. Voltas was recognized as the key market player in the AC segment in India for the consecutive financial years of 2013-14 and 2014-15 with a whopping market share of 19.8% and 20.8% respectively. It surpassed the competitors in the AC segment by incorporating standardized production practices and indigenous energy efficient technology....
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  • Understand the market penetration of ACs in India.
  • Assess the opportunities for AC companies in India.
  • Understand how Voltas became the AC market leader in India.
  • Understand the AC market dynamics in India.
  • Nature of the AC market in India — three firm concentrations, Herfindahl-Hirschman Index.
  • Market share of ACs in India.
  • Demand pattern in urban and rural India.
  • Price Elasticity of Demand for ACs in India.
  • Income Elasticity of Demand for ACs in India.
  • Opportunities for AC companies in India.
Voltas, a Tata-owned air conditioning and engineering services company, was felicitated at the Dun & Bradstreet, Inc. (Dun & Bradstreet ) Corporate Awards 2015 in the consumer durable home appliances segment in India. Earlier in 2013, in recognition of its focus and promotion of energy efficient appliances, Voltas was awarded the ‘National Energy Conservation Award’ by the government of India....


Demand pattern, Price Elasticity of Demand, Income Elasticity of Demand, Factors influencing demand, Firm concentration, Herfindahl-Hirschman Index, Market penetration, Market dynamics, Managerial economics

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