Kolkata, Feb 2 (IANS): Tata group-owned cooling company Voltas Moday said it is marginally hiking its prices of air conditioners by two to three percent in face of rising forex imbalance and government taxes by mid-February.

"Our forex and government taxes has gone up by five percent. While we will absorb a part of this, the prices of our air conditioners (AC) will go up by two to three percent in the middle of February", the company's CEO, unitary products division Pradeep Bakshi said here.

In case taxes go up further which will add to input cost, the retail prices of the ACs may head further north, he added.

While the company continues to enjoy market leadership position in the AC segment at 25 percent by sales figures, its biggest challenge is lack of diversified products. The company had quit the consumer refrigeration business in 1998-99.

It is presently conducting a study in association with the group owned TSMG for extension of product line and may consider diversification in the consumer durables and electronics segment. However, Bakshi did not mention when the study will be completed.

Voltas registered an annual growth rate of 12 percent selling nearly one million ACs in 2014 and is optimistic about closing the current fiscal on a good note. Its accumulated net profit for first two financial quarters in the current fiscal year stands at Rs.159 crore.

"We are ahead of the nearest competition from Korean players by 58 percent as per the market share. Our nearest Korean competition has 15 to 16 percent market share," Bakshi said.

Also, the company is eyeing further expansion into the overseas market in the Middle East and Africa.

"Our target is to export at least 100,000 units in a year over the course of the next two years which will account for 10 percent of the annual sales," Bakshi said.

The company is presently exporting between 25,000 to 30,000 units to its overseas operations annually which accounts for roughly 5 percent of the annual sales.

The AC business contributes between 75 to 80 percent of the company's total earnings.

It is presently focusing on strengthening its channel partner base and opt for brand shops to further increase its presence.