Johnson Controls-Hitachi Air Conditioning India Ltd.
My warm greetings to all the stakeholders of Johnson Controls-Hitachi Air conditioningIndia Limited.
As you all know Johnson Controls-Hitachi Air Conditioning India Limited is the Indianarm of the Johnson Controls-Hitachi Air Conditioning a joint venture Company of JohnsonControls USA and Hitachi Appliances Japan. This partnership is aimed at addressing thecooling needs faster smarter and much more efficiently than ever before by bringinginnovative technology of Hitachi with the industry leading expertise and global network ofJohnson Controls.
It is my pleasure to share the key highlights of 2016- 17. The year 2016-17 witnessedIndia emerging as the fastest growing major economy in the world. Various initiatives ofthe current government and various favorable business policies have helped in shaping upthe economic growth. We have also witnessed the Government take decisive action in theform of Demonetization and push towards GST implementation both of which are believed tohelp the Indian economy in the long run. In addition prudent monetary policy making hashelped control inflation and stabilize exchange rate. With this I am sure that despitethe uncertainties in the global market; the Indian economy will grow further in the fiscalyear 2017-18. Better economic situation may improve buying power of the consumers anddevelop growth opportunities for business.
The year 2016-17 was a good year for the room air conditioning industry which has seena growth of 8%. Demand for Split Air Conditioners increased while that for Window AirConditioners was stagnant. Inverter Air Conditioners also showed growth over the lastyear which was result of awareness created by Bureau of Energy Efficiency (BEE) and airconditioning industry about energy saving through Inverter Air Conditioners. Looking atthe demand for mid-segment Split Air Conditioners Company launched two new range of AirConditioners called WAZA' and RIDAA'. These products were priced strategicallyto attract the mid- segment buyers. Overall Company's Room Air Conditioning business hasachieved strong growth.
Commercial Air Conditioning industry has witnessed a slowdown during the year due todemonetization as several real estate projects went on hold. Despite this setback thecompany's Packaged Air Conditioning and Variable Refrigerant Flow (VRF) businesses havegrown over last year through the company's focused efforts on channel expansion. Setfree-VRF business remains a focus business for the Company and it has invested in relatedinfrastructure and human capital during this period. This focus has helped Company's SetFree-VRF business achieve double digit growth despite the demonetization. To support thisgrowth for the coming years the company shall continue to invest in new productdevelopment in this segment.
Johnson Controls-Hitachi Air Conditioning India Limited also operates (through trading)in Frost Free refrigerators segment (over 250L capacity) and premium Air Purifiers. Theuncertainty and cash crunch resulting from demonetization has impacted this category ofbusiness resulting in a flat year for this business segment.
Manufacturing was another area where company invested into automation of machines byadding pick & place robots in injection moulding machines and copper pipe bendingmachines. Company has also launched several major initiatives under Johnson ControlManufacturing System (JCMS) program with a goal to become the "Most OperationallyCapable Company".
Apart from the Products the company also focused on after sales services and undertookseveral initiatives to improve the customer satisfaction index which has shown a healthygrowth year-on-year. Apart from the Company-owned Hitachi Customer Service (HCS) centersthe Company launched Hitachi l-Care' Service App. The app allows a customer toregister their product take demo register complaint and track complaint status thusavoiding lengthy waiting time on calls to register complaint. The Company will continue tofocus on customer service a key differentiator for future business growth.
With such initiatives and regular investments in new technology I am sure JohnsonControls-Hitachi Air Conditioning India Limited will emerge as a leading air conditioningplayer in the Indian industry. With an objective of sustained profitable growth we willkeep providing wide range of cooling solutions because we believe Every HomeDeserves Hitachi Cooling'.
With this I would like to thank all the stakeholders of Johnson Controls-HitachiAir-conditioning India Ltd the employees for their sincere efforts our various vendorsfor their valued support the customers for their trust in our product and our respectedshareholders for showing their continuous faith in our business.
We are committed to deliver best value to all of you.
I wish all of you the best of health and prosperity in the year 2017-18.