Our Corporate Bureau / BUSINESS STANDARD Aug 14, 2003, 00:00 IST
Fedders Lloyd Corporation, the Rs 170-crore airconditioning company, plans to set up a manufacturing facility in the near future for its new range of bus air-conditioning and truck refrigeration products.
It is eyeing a 7.5 per cent market share in the first year of operations and hopes to increase it to 30 per cent by 2005.
The company has entered into a tie-up with Hong Lim Industrial Co of Korea to foray into this segment.
It has introduced the ‘energy efficient’ range of products under the brand name HIL Lloyd. The products would be initially imported in completely knocked down (CKD), semi-knocked down (SKD) and complete business unit (CBU) condition. The Korean company will provide technical and after-sales support.
Commenting on the tie-up, R Krishnan, chief executive officer, Fedders Lloyd, said: “Our tie-up with HIL, a global leader in bus AC and truck refrigeration, will strengthen our market leadership in the Indian air conditioning business. In another six months, we will be finalising our plans for setting up our own manufacturing facility here in collaboration with our Korean partner. We have set up a separate business division for our latest venture”.
The company claims that the HIL Lloyd range is energy efficient in that the bus AC product does not require a separate engine to drive the compressor unlike a conventional product.
Observing that India was a growing market, Seung Ho Song, group president, Hong Lim Industrial Co, said: “ Apart from the training and technical support to Fedders Lloyd, we plan to use India as our export hub for Sri Lanka, Bangladesh and Nepal. The products would be exported to these countries through our partner under the same brand. India is the tenth country where we would have a presence”.
The cost of a single bus AC unit ranges from Rs 4.5 to 9 lakh and a truck refrigeration unit is priced between Rs 1.75 and Rs 4.5 lakh.
The current market size for bus air-conditioning is 2,500 units per annum and is Rs 125 crore in value terms.
The company is targeting transporters, airlines, state road transport corporations, the OEM market and hotel chains. It is also in talks with firms like Ashok Leyland and Tata Motors.
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