Hitachi Home & Life Solutions India (HHLI), a wholly owned subsidiary of Japan’s Hitachi Appliances, is planning to increase its market share in the air-conditioner category by introducing the Kaze range of split and window ACs.

The company hopes to increase its market share from 7 per cent to 10 per cent by 2012.

The Kaze range was being test marketed in tier II and III towns. Based on the market response, the company has decided to introduce the range nationally. “Hitachi products are priced at a premium but we have customers who don’t mind paying for the kind of products we have. Now we want to tap the mass premium market by introducing the Kaze range. The products are of the same Hitachi quality, but 10 per cent cheaper than the Hitachi range available in the market,” said Gurmeet Singh, vice-president & head - sales and business planning, HHLI.

The company is also launching separate advertising for the Kaze range. “We have earmarked a budget of Rs 40 crore for advertising and promotion of the Kaze brand. But so far we have no plans to rope in a brand ambassador for it,” Singh said.

The company estimates the Indian AC market at 3.2 million units annually, which is valued at Rs 5,500-6,000 crore, and growing at about 20 per cent annually. “As part of our strategy till 2015, we are targeting 15 per cent market share in both split and window ACs in India,” said Motoo Morimoto, managing director, HHLI.

The company is expecting India to contribute up to 7 per cent of Hitachi's global AC sales by 2015. The company had recently introduced a new range of window and split ACs, priced between Rs 19,990 and Rs 49,990.

Moritomo said in 2012 the company will introduce green air-conditioners and refrigerators.