AC makers ramp up capacity to meet increased demand : The Tribune India

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AC makers ramp up capacity to meet increased demand

CHANDIGARH: Anticipating higher sales this summer season, room air-conditioner makers such as Daikin, Blue Star and Panasonic are ramping up their manufacturing capacity to the meet the demand.



Vijay C Roy

Tribune News Service

Chandigarh, April 20

Anticipating higher sales this summer season, room air-conditioner makers such as Daikin, Blue Star and Panasonic are ramping up their manufacturing capacity to the meet the demand.

The domestic room AC market is around 50-55 lakh units per annum. Last year, the industry grew by 10%. The industry anticipates that sales will grow anywhere between 15-20% this summer based on early sales trend and forecast by the India Meteorological Department (IMD).

Company officials said they were building up additional inventory either by expanding production capacity or by increasing the capacity utilisation.

In November last year, Daikin commenced operations at its second factory at Neemrana in Rajasthan. Post expansion, it has the capacity to manufacture 15 lakh units per annum. The company is also planning to introduce window ACs in select markets, especially in tier-III and tier-IV cities. Currently, it sells split air-conditioners in residential segment and claims to be the second largest player. The company is eyeing turnover of Rs 4,000 crore this year as compared to Rs 3,250 crore last year.

CP Mukundan Menon, president — Sales & Marketing, Product Business, Blue Star Limited, said the company intended to increase manufacturing at its Kala Amb unit in Himachal Pradesh from 5 lakh to 5.30 lakh units on the back of increase in demand. He said the company was also setting up a new unit at Sri City, Andhra Pradesh, which will start commercial production by the end of 2021. The new plant will have an installed capacity of 5 lakh units per annum.

Gaurav Sah, business head, Air Conditioners Group, Panasonic India, said the company would increase capacity utilisation of room air- conditioners at its unit in Jhajjar (Haryana). He said, “Last year we sold around 3.5 lakh units and this year we are targeting sale of 4.17 lakh units. Last year the capacity utilisation of the plant was between 50-60%. We intend to increase the capacity utilisation to meet the demand.”

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