Daikin to foray into window AC market

Vijay C Roy

Tribune News Service

Chandigarh, March 8

Notwithstanding stagnant growth in the window AC segment, Daikin India is 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 market for window ACs in India is around 8-9 lakh units per annum and the growth is almost stagnant for the past few years now as consumer preference is shifting to split air-conditioners now with split air-conditioners contributing almost 80% to the total sales in room air-conditioner segment.

The company will manufacture the window ACs at its second manufacturing facility at Neemrana in Rajasthan. In November last, the company commenced operations at its second factory, in which it has invested around Rs 750 crore. The company is adding more lines in the facility which will be completed by November this year. Post expansion, it will have capacity to manufacture 15 lakh units.

The company had a turnover of around Rs 2,980 crore in 2016-17 and expects to cross Rs 3,400 crore in the current fiscal. Virmani said the growth would be coupled with exports, diversification and new business streams. Commercial refrigeration will further contribute to the growth.

Meanwhile, the company has launched a new range of energy efficient inverter ACs under ‘JTKJ’ series. The company also plans to expand its dealership network to 5,000 and develop 100 additional Daikin exclusive solution plazas across the country in the coming 12 months.