Page 2 - Air Conditioner Market

Blue Star Q4FY24 results: Net profit declines 29% to Rs 159.71 crore

Air conditioner and commercial refrigeration system maker Blue Star Ltd on Thursday reported a 29 per cent decline in its consolidated net profit to Rs 159.71 crore for the fourth quarter of 2023-24. The company had reported a net profit of Rs 225.29 crore in the January-March quarter of FY2022-23, a regulatory filing showed. Blue Star's total income increased to Rs 3,340.16 crore in the quarter under review from Rs 2,830.48 crore in the January-March period of the previous fiscal. Its total expenses were also higher at Rs 3,126.38 crore in the fourth quarter of 2023-24, compared with Rs 2,485.46 crore in the corresponding period last year. "The company has reported Revenue from Operations of Rs 9,685.36 crore for the year ended March 31, 2024, compared to Rs 7,977.32 crore during FY23, representing growth of 21.4 per cent," Blue Star Ltd stated. It further informed that the net profit for the year was Rs 414.31 crore compared to Rs 400.69 crore in FY23. During the previous year, t

Rising heat drives up sales of ACs in India; increase in installation times

Installation times of air-conditioners are stretching to two weeks in certain areas, as sales have surged up to three times compared to the previous year

Hitachi Energy plans India expansion, local ops amid rising power demand

India's government last year rolled out incentives for green energy transition, with an aim to have 500 GW of installed capacity through non-fossil fuel sources by 2030

Country's consumer firms gear up to capitalise on a sizzling summer

Cooling systems providers are one of the main beneficiaries of summer, with the season contributing up to 60% of their annual revenue

Commercial AC market has significant growth potential, says CEAMA president

Commercial air-conditioning (AC) market holds "significant promise" and is witnessing growth, driven by rapid urbanisation, infrastructural development and growing emphasis on comfort in commercial spaces, said Sunil Vachani, president of electronics and appliances manufacturers' body CEAMA. The commercialC (Heating, Ventilation, and Air Conditioning) segment is witnessing a shift with its wide array of applications, with infrastructure growth including offices, retail spaces, healthcare facilities, hospitality establishments, and educational institutions, said the president of Consumer Electronics and Appliances Manufacturers Association (CEAMA). Moreover, factors such as increasing awareness of indoor air quality, sustainability mandates, and the integration of IoT (internet of things) and building automation systems are also reshaping the commercialC landscape, offering avenues for innovation and market expansion, he said. "In terms of growth potential, the commercialC segment ..

Blue Star expects 25% growth in sales of residential AC in June quarter

Homegrown cooling products maker Blue Star on Tuesday said it expects up to 25 per cent growth in sales of residential AC in the June quarter, the period which accounts for the highest number of sales due to the temperature rise and heat wave. The company has already witnessed up to a 40 per cent year-on-year increase in sales of AC in March from the Southern region, where sales of cooling products start early, Blue Star Managing Director B Thiagarajan said. "Our goal is to reach the market share of 15 per cent in FY25. So we are working towards that, we have another 11 months to go," Thiagarajan said. To woo customers in its fold, Blue Star, which launched a new range of over 100 affordable and premium models of AC on Tuesday, plans to invest over Rs 40 crore in advertising during the summer season. Blue Star is witnessing a significant demand coming from the burgeoning middle-class consumers with higher disposable incomes and the category becoming more of a necessity than a ...

Voltas AC records 35% sales growth, crosses 2 million unit mark in FY24

Leading residential air conditioner maker Voltas on Sunday said it has recorded a 35 per cent sales growth to over two million units in FY24, becoming the first company in the domestic market to cross this mark. The performance was attributed to a consistent demand for cooling products during the year, coupled with a strong offline and online distribution network, and new innovative launches, the Tata Group firm said in a statement. "The company achieved over 2 million AC units during this fiscal 2023-24, the highest ever sale of ACs by any brand in a financial year in India, with a volume growth of 35 per cent," it added. With these landmark sales, Voltas is "the first ever brand to achieve this extraordinary milestone in the Air Conditioning industry in India", it said. The Indian residential AC market is estimated to be around 10 million units in FY24 and is expected to grow to 11.5 million units this year. Even during the March quarter, when sales of compressor-based cooling .

AC industry expects double-digit growth, 11.5 mn unit sales this season

Sale of air conditioners has seen a relatively slow start, contrary to expectations, but manufacturers remain confident of registering double-digit growth to cross the 11.5 million unit sales-mark this year. Leading players in the AC industry said "favourable weather forecast of a scorching summer" and increase in disposable income are likely to push up sales. Top manufacturers such as Daikin, Panasonic, LG Electronics, Blue Star, Godrej Appliances and Lloyd, expect up to 25 per cent growth this year, along with a substantial contribution from tier-III towns and smaller centres, which are emerging as promising markets for the category. Sale of energy-efficient 5-star inverter-technology-based models will have a higher contribution from metro cities and other big markets, while affordable 3-star ACs will continue to dominate the semi-urban and rural markets, they said. Brands have already introduced a new lineup with smart features such as IoT, energy-efficient models with low ...

Blue Star bets big on 'harsh' summer to cross 1 million mark in sales

'Rural markets key growth driver, contributing to 65% sales'

Govt's infra push to spur growth of heating, ventilation, AC sector: ISHRAE

The heating, ventilation, and air-conditioning (HVAC) sector is poised for an unprecedented growth due to increased demand in the coming years on the back of the government's focus on infrastructure investment, say industry players. Finance Minister Nirmala Sitharaman in the annual budget for the 2024-25 financial year has allocated Rs 11.11 lakh crore for infrastructure. Industry stakeholders shared their views during the 23rd edition of ACREX India. The three-day event, being held at Greater Noida, has been organised by industry body ISHRAE and Informa Markets India. "As we observe the remarkable growth trajectory of theC industry and the significant strides achieved through initiatives like the Atal Community Innovation Centre (ACIC) programme, ACREX India emerges as a symbol of opportunity and progress," ISHRAE President Yogesh Thakkar said. "With the substantial government investment of USD 1.45 trillion in infrastructure projects over the next five years, we stand on the brin

Heating, ventilation, and AC market may reach Rs 1.78 trn by 2028: Industry

The Heating, Ventilation, Air Conditioning (HVAC) market, along with intelligent building solutions, is projected to reach Rs 1,78,000 crore (or USD 21.5 billion) in India by 2028, according to industry estimates. The estimates were shared by Indian Society of Heating, Refrigerating, and Air Conditioning Engineers (ISHRAE) on Tuesday ahead of the 23rd edition of ACREX India, a dedicated industry event being organised in collaboration with Informa Markets India, at Greater Noida from February 15-17. "Being the largest exhibition in South Asia dedicated to air conditioning, heating, ventilation, and intelligent buildings, ACREX India will focus on the growth of the HVAC manufacturing sector in India, projected to reach USD 21.5 billion (Rs 1,78,000 crore) by 2028," as per a statement. The three-day expo will feature over 500 exhibitors from 40 countries, including Belgium, China, Czech Republic, Egypt, France, Germany, Italy, Japan, Korea, Malaysia, Saudi Arabia, Singapore, Spain, ...

Voltas Q3 results: Profit falls 58% to Rs 23.85 crore as expenses rise

The Tata Group-owned company's consolidated profit before exceptional items and tax fell 58% from last year to Rs 23.85 crore ($2.87 million) in the three months to Dec 31

PLI scheme for ACs game changer for industry: Panasonic Life Solutions

The Production Linked Incentive (PLI) Scheme for the air-conditioner industry is proving to be a "game changer" as within a year and a half of its launch, the ratio of domestic value addition has gone up significantly to 45 per cent from 25 per cent, a top Panasonic Life Solutions India official has said. The sole objective of the PLI scheme for air-conditioners was to increase the value addition to 75 per cent from 25 per cent by FY28 by encouraging the domestic production of components, Chairman of Panasonic Life Solutions India and South Asia Manish Sharma said. "A jump from 25 to 45 has happened just in about more than a year. So, that is the change, which is happening, and that is why I feel that the PLI has been a game changer, specifically in the air conditioners industry," Sharma, who also heads the Electronics Manufacturing Committee of industry body Ficci, told PTI. Investments in heat exchangers, compressors and other components, which are part of the PLI scheme for ...

AC-maker EPACK Durable IPO subscribed 77% on first day of subscription

The Initial Public Offering (IPO) has a fresh issue of Rs 400 crore and an offer-for-sale of up to 1,04,37,047 equity shares. The IPO has a price range of Rs 218-230 a share

Govt relaxes quality control order norms for ACs to enable ease of business

Quality control orders (QCOs) issued by the government aim to not only improve the quality of manufacturing standards but also enhance the brand and value of 'Made in India' products

Downgrades may pressure Voltas stock, QCO norms could impact sales

While most analysts have made EPS estimate downgrades for FY24, quite a few continue to recommend "Buy/ Accumulate" in expectations of strong overall growth through FY26

Voltas working to transform into a full-fledged home appliance maker

Voltas is also reviving its plan to make AC compressors locally in partnership with a South Korean or Japanese firm

Blue Star launches QIP to raise Rs 1,000 cr, floor price at Rs 784.55

Leading cooling products maker Blue Star on Monday launched its qualified institutions placement (QIP) offer with a floor price of Rs 784.55 per equity share to raise Rs 1,000 crore to support its growth plans. The floor price is 2.04 per cent lower than Rs 800, the price on which the scrips of Blue Star closed on BSE on Monday. The Executive Management Committee at its meeting held on Monday considered and approved the issue's opening on September 18, 2023. It also approved "the floor price for the Issue, being Rs 784.55 per Equity Share, based on the pricing formula, as prescribed under the SEBI ICDR Regulations". The equity shares have a face value of Rs 2 each, according to a regulatory filing by the company. Moreover, in accordance with the approval of the shareholders accorded through a special resolution on September 15, 2023, "the company may at its discretion offer a discount of not more than 5 per cent on the floor price so calculated for the Issue", it added. A meeting

Voltas reports 19% increase in profit on surge in AC sales in June quarter

Voltas shares closed down 0.98% at 828.55 rupees ahead of the results

India to see LG's highest sales growth globally this year: MD Hong Ju Jeon

LG India will boost localisation of its products by increasing the use of locally produced components from 50% to 70%