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Johnson Controls-Hitachi Air Condition. India Ltd.

BSE: 523398 Sector: Engineering
NSE: JCHAC ISIN Code: INE782A01015
BSE 00:00 | 17 Jan 1944.75 -0.15
(-0.01%)
OPEN

1945.00

HIGH

1959.45

LOW

1913.50

NSE 00:00 | 17 Jan 1945.70 0.45
(0.02%)
OPEN

1949.95

HIGH

1964.00

LOW

1937.00

OPEN 1945.00
PREVIOUS CLOSE 1944.90
VOLUME 568
52-Week high 2936.70
52-Week low 1856.60
P/E 95.99
Mkt Cap.(Rs cr) 5,288
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1945.00
CLOSE 1944.90
VOLUME 568
52-Week high 2936.70
52-Week low 1856.60
P/E 95.99
Mkt Cap.(Rs cr) 5,288
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Johnson Controls-Hitachi Air Condition. India Ltd. (JCHAC) - Chairman Speech

Company chairman speech

The pandemic has changed the way we live interact and work ushering a new era of amore informed modern lifestyle. Consumer is the King and we understand that consumer ofthe new informed world is evolving every day and their need for NEW is changing. In ourendeavour to meet demands of this aspiring consumer Hitachi is committed to set newconsumer satisfaction milestones with its best-in-class products and solutions.

Dear Shareholders

Heartiest Greetings to all of you!

At the time of writing this message India and several other parts of the world aresuffering from another wave of pandemic Covid-19 which is much harsher and tougher thanwhat the world had seen last year. With deep grief and sorrow my heart goes out to eachand every person who has suffered the loss of her/his loved ones. I wish and am sure thatwe shall eventually come out from this but until then I urge to one and all that we mustobserve Covid protocols govt. guidelines and get vaccinated (if eligible).

I pray for health and safety of all of you and your loved ones.

I would like to express my sincere gratitude for your continuous support over the yearsand through tough times that tested us all. I am extremely proud of our employees' andchannel partners' efforts during these unprecedented times.

After these trying times we should work for the new world. The pandemic has made usanalyse re-think review re-formulate re-organise and innovate to transform into aworld which is not just sustainable but also more compassionate. The pandemic has changedthe way we live interact and work ushering a new era of a more informed modern lifestyle.

The consumer of the new informed world has evolved and is full of energy passion andpositivity. This New Bharat's new-age consumer aspires for innovative product offeringsleading to convenience and comfort.

The beginning of the current financial year (2021-22) may have been slow but we areoptimistic about the future of the HVAC industry. We look forward to a good year forbusiness driven by path breaking innovation flexibility futuristic solutions and changedconsumer perspective. The changing perspective about air conditioning as a necessitylifestyle product and a health requirement instead of being a luxury product is a welcomechange. Market penetration will also help the business grow.

The Company has continuously focused on futuristic consumer centric solutions. Over thepast few years' consumer awareness has increased immensely about Inverter technology.Improved lifestyle higher disposable income year-round usage pattern increasingurbanization ease of finance options warranty assurance etc. has led to higher tractionfor superior technology of Inverter models. The Company had anticipated high demand ofInverter technology in advance and accordingly developed a strong product line of Invertertechnology powered Room Air Conditioner models. The Company has robust plans for 2021summer season with new products having eye catching features and we plan to reach out toour customers through our strong & nationwide channel network with aggressivemarketing strategies.

Anticipating pent up demand for summer season of 2021 due to low buying in summerseason of 2020 the Company has planned well in advance and launched new products havingseveral new features and technological enhancements. The Company has introduced itsinnovative range of new products & technologies via virtual launch and received anoverwhelming response with more than 6500 participants attending the event.

As part of our sales strategy during the year 2021-22 we will continue to aim atincreasing our reach in tier 2 & tier 3 towns synergise our efforts to strengthen ourchannels enhance nationwide service network bring efficiencies to supply chain enrichour product portfolio and work towards making Hitachi Air an aspirational brand. I amconfident that this comprehensive approach will help us in making our Room Air Conditionerbusiness successful in ongoing financial year.

Consumer is the King and we understand that consumer of the new informed world isevolving every day and their need for NEW is changing. In our endeavour to meet demands ofthis aspiring consumer Hitachi is committed to set new consumer satisfaction milestoneswith its best in class products and solutions. To create comfort and brand appeal forcustomers who are willing to adopt our advanced technologies combined with appealingaesthetics inspired from nature and Japanese roots we are leading our communication with"New begins with You". Silent air Surround air Odor free air Clean air andFresh air grouped as Hitachi air along with new features shall elevate our brand image andachieve a higher youth appeal. The Company continues to cater to diversified segments andachieve excellence.

The commercial air conditioners market has also had interesting developments theVariable Refrigerant Flow (VRF) technology has been accepted and adopted widely now in theIndian market and is surpassing the PAC market in terms of value. VRF based Airconditioning systems are gaining immense popularity with increasing adoption at corporateoffices hotels IT offices high-end residential apartments villas retail storessupermarkets hospitals banks education institutes etc. Being a customer focusedCompany Johnson Controls-Hitachi Air Conditioning India Limited has caught the pulse ofhigh-end customers and has introduced a new range of VRF products. We have recentlyintroduced country's first of its kind premium and luxurious air conditioning system 'SETFREE mini' to match modern lifestyle choices. In our endeavor to build air conditioningsolutions that match with the evolved & new-age customers we also launchedSideSmart™ - World's first slim modular side throw VRF model air conditioners. TheCompany is constantly producing best technology products and has established itself as aleading 'Air Expert' in the B2B space.

In the packaged AC segment the Company enjoys a strong market share with a strongchannel network. Post pandemic period the Company is expecting improvement in livingstandards along with rapid recovery of the organized commercial sector characterized bythe rising number of hypermarkets supermarket and offices etc. Light Commercial HVACsegment is expected to emerge as a dynamic business area. The Company is expecting growthof the overall commercial chain which in turn is expected to boost the sale of HVACpackaged units and Cassette ACs in the coming period.

Being the single largest air conditioning solution provider for cooling requirements inTelecom Towers the Company continues to dominate this segment. Future growth of thetelecom tower sector would be driven by 5G and loT business. While demand for servicescontinues to spike given India's increased usage of internet amid the pandemic there isan all time need to create more cellular infrastructure. We are hopeful that with therevival of the telecom industry our revenue from this segment will increase in nearfuture.

Strengthening the global footprint in the last couple of years the Company hasstarted exporting to South Asian countries (Nepal Bhutan Sri Lanka and Maldives) andSouth East Asian Countries like Indonesia and Vietnam. We are also exporting our productsin Middle East countries like UAE Qatar Oman Bahrain Iraq Kuwait and Saudi Arabia.This year direct business operations have commenced in Africa and South Asian countrieswith the help of the newly formed International sales department. The Company expects toincrease its exports business in the coming years with stabilized government policiesafter recovering from COVID-19 pandemic.

The Company is fully committed to the Indian market and is aggressively promoting andpushing 'Made in India' ACs. We have started working with many component manufacturers inIndia. We are working with Industry associations Government and our overseas vendors toensure complete indigenisation of critical components. We are encouraging our overseasvendors who can come and put their factories here in India for the critical componentswhich are imported. Be it motors PCB boards or compressors we intend to procureeverything from India to support 'Atmanirbhar Bharat' Abhiyan.

We expect a positive outlook for commercial air conditioning from growing demand forrobust medical and health care facilities pharmacies cold rooms warehouses datacentres etc. Support from several favourable Government initiatives such as Production LedIncentives (PLI) and Phased Manufacturing Plan (PMP) are expected to boost localmanufacturing of critical components for Indian Air Conditioning Industry in the comingyears.

Being a socially responsible organisation the Company strongly believes in itsresponsibility to give back to the society. This year was challenging year for CSR due tothe COVID-19 pandemic. In spite of severe restrictions imposed due to lockdown across thecountry our CSR team tirelessly worked towards the successful and impactfulimplementation of all the planned projects which includes Primary Health Center atKarannagar that worked for the first rung medical care of approximately 40000 rural andpartially impoverished population in the hinterland of Gujarat. Under its SanitationProject Johnson Controls-Hitachi Air Conditioning India Limited constructed more than 850toilets and its Skill Development Project trained over 450 school dropouts includinggirls. Approximately 40% students got the jobs after completing the course from SkillDevelopment Centers. Initiative of skill building in Air Conditioner and Refrigerationsegment is helping transform country's rural youth into world-class technicians. Duringthe year lot of work has happened in education and digital education field as well.

Challenges make us stronger recent events have highlighted the importance ofinnovation technology advancement adaption future planning future readinesssustainability but more importantly the importance of relationships.

We need to keep progressing on the path of our individual goals while making sure wework towards our team goals and organisation goals. The Company has maintained a lead bydeveloping advanced technology and a very sound dependable and compassionate network ofmindful and sincere people.

I would like to express my sincere appreciation and thanks to all the stakeholders ofJohnson Controls-Hitachi Air Conditioning India Limited for their faith in our efforts andsupport to the business. We assure you that we are committed towards creating excellenceand value with responsibility.

Gurmeet Singh

Chairman and Managing Director.

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