As per the press release, the cooling area by the wall mounted cooler is equivalent to a 1.5 ton AC and costs Rs 15000.
From various sites, I could find cheapest split AC at apprx. Rs 23000 and window AC at apprx. Rs 21000. Which is higher by roughly 47% - not a small amount.
Yes, AC is more sophisticated and would have better features. Quality of cooling would also be much better. But air coolers are targeted more as an upgrade for fan-only users. My sense is that, while this will not be a game changer for the company / sector, it certainly adds one more advantage (viz space saving) for the user. And it is sort-of plug and play 
Discl - invested from lower levels. no transactions in last 9 months.