According to Mr A K Rathi, managing director, Merloni TermoSanitari Ltd, ``We do not intend to enter the window AC segment, which is competitive and cluttered with too many players. We will instead focus on split ACs.'' The company is not targeting volumes, but looking at the top end of the market and will initially import the units. Later, it will go in for manufacturing 1.5-2 tonne split ACs at its Chakan (Pune) facility.

Simultaneously, Merloni is also extending its portfolio to include bathroom accessories like bathtubs, jaccuzis and shower cubicles under the Ariston brand, with the launch of enamelled bathtubs. Priced between Rs 6,200 and Rs 8,000, the company claims the product has a lifespan of 20 years and is scratch and chip-proof.

The company uses a segmentation strategy to target the market with products under two brand names: Ariston (water heaters and ACs) for the premium segment and Racold, under which it has a whole range of water heaters for the upper middle segment, from the recently introduced premium polypropelene-body Racold Altro water heater to the more popular models.

Merloni TermoSanitari Ltd, which is the wholly owned subsidiary of MerloniSanitari SpA Italy, registered a sales turnover of Rs 32 crore in CY 1999 and is targeting Rs 45 crore this year. Its Chakan manufacturing facility is also the global export base for water heaters with stainless steel inner containers.