air-conditioning
The air conditioning (AC) industry in India is worth around Rs 27,500 crore and is likely to double in the next four years. Air conditioning company Blue Star has said in its annual report that the Indian HVAC&R (heating, ventilation, air conditioning and refrigeration) industry is poised for rapid growth. The government’s star rating or energy efficiency model has played a major role in increasing the demand for air conditioning in the country and making it popular among the people.
Why do cells increase?
There is a perception among common people that AC consumes a huge amount of electricity bill. In such a situation, people started getting an idea from AC star rating as to how much their electricity bill will go up due to a certain usage. When people realized that they could afford it, they started buying AC. This is the reason why there is a boom in sales.
Information revealed in this report
This growth will be driven by factors such as low penetration of domestic ACs and rising number of middle-class consumers with higher disposable incomes, especially from tier three, four and five urban markets. Blue Star Chairman and CMD Veer S Advani told the company’s shareholders in its annual report 2023-24 that the current value of the Indian AC industry (both domestic and commercial) is around Rs 27,500 crore, which is expected to double in the next four years. .Have a budget. Due to this, AC stocks may also rise.
The company is “optimistic” about the future of its business as climate trends change, leading to warmer temperatures and a new, more robust product portfolio in residential and commercial air conditioning. Advani said Blue Star has launched a three-year strategic plan to strengthen its core capabilities, acquire new capabilities, create new processes and adopt new technologies.
Voltas had made this estimate
The company has said that due to the presence of domestic and foreign companies, competition has intensified in India’s domestic AC market. Behind this, rising heating prices, slightly rising incomes and easily available EMI option for customers have acted as a booster dose in AC sales. The company believes that now the desire for a better lifestyle has increased in both cities and rural areas, due to which people are increasingly interested in buying ACs. Voltas has said that India’s domestic AC market is likely to grow at an annual rate of 12 per cent to reach Rs 50,000 crore by 2028-29.
This is how the air conditioning market grew in the country
Now, if we talk about the AC market, earlier ACs were generally purchased primarily for commercial spaces like offices and malls. Now domestic AC sales have increased. According to Seema, of the 1.4 million ACs expected to be sold this year, about 1 crore are for residential use only.
