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GST to push sales higher: Kenstar

The company is planning to expand in the north by this yearend. It will also get into the industrial cooler segment.

Hyderabad: Consumer durable major Kenstar expects higher air cooler sales under the GST regime as input tax credit will reduce price gap between organised and unorganised players.

“The market share of the unorganised players in the air cooler market is huge. The GST regime, however, would force them to come under the tax bracket, without which they would lose out on the input tax credit. Organised players like us, on the other hand, will get input tax credit and can enjoy economies of scale, which unorganised players won’t. This will make consumers opt for branded goods,” said Mr Rajiv Kenue, COO, Kenstar.

Kenstar is the largest air cooler maker by sales in the south and western regions. The company is planning to expand in the north by this yearend. It will also get into the industrial cooler segment.

In an attempt to tap into the air purifier market, Mr Kenue said the company would launch its air purifiers by September as air pollution is expected to increase post-Diwali and in winter.

Air pollution has become one of major concerns in metroes due to growing car sales and it has led to higher demand for air purifiers, whose current sales are expected upwards of Rs 250 crore.

Mr Kenue said the air purifier market is expected to increase by up to 30 per cent a year and could hit Rs 1,000 crore in three years.

( Source : Deccan Chronicle. )
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