India a hyper-growth market, says Carrier executive Michael Gierges

Carrier calls India a hyper-growth market, plans manufacturing expansion and aims to position the country as a regional export hub for HVAC solutions

India is a hyper-growth market for Carrier, with double-digit growth across segments. “I call India a hyper-growth market — an accelerated growth market. We’ve been growing at a double-digit pace across all fronts. There is no exception in the next economic cycle or over the next five years. We expect this momentum to continue,” Michael Lotfy Gierges, president of climate solutions for Asia-Pacific, the Middle East and Africa at Carrier, told Business Standard.

 

“We are looking to multiply our position and our business in India going forward, and we will make the appropriate investments to support that,” he added.

 

Gierges said the company is expanding its manufacturing presence in India and working closely with its supply chain, including micro, small and medium-sized enterprises, to increase production capacity and upgrade skills to meet rising demand.

 

Without sharing details of the expansion, he said, “With the plans we have in mind, we see India as a manufacturing hub, not just a research and development hub, to serve surrounding markets. West Asia is only a few hours away. Many countries have free trade agreements with India, which allow us to export from India and deliver to those markets at zero tariff.”

 

“We are focused on expanding that, which is why this expansion is central to our growth story in India. In the past, we were focused on ‘India for India’. Now, we want to build an ‘India for the region’ story,” Gierges said.

 

On the HVAC (heating, ventilation, and air conditioning) business, he said the company saw strong demand from the retail segment last year. “Retail has been an incredible growth driver for us. New shops and malls are opening at scale and are becoming a major force in the economy,” he said.

 

Carrier has also seen demand from adjacent industries such as electronics, power rack, and IT, which continue to drive growth in its HVAC business in India.

 

Currently, 60 per cent of Carrier’s HVAC products are manufactured locally. Gierges said the company has been steadily investing in India while expanding both its footprint and industrial capacity.