Current Scenario of Central AC Market


0
2 comments

Current Scenario

Advertisement

The Central AC (CAC) market has had a rough patch in the last two to three  years. Being dependent on user industries, it is highly susceptible to industrial growth cycles. With new industrial activity coming to a grinding halt, demand for turnkey central AC projects have dried up in last two years. Central AC segment is controlled by big players like Blue Star that have the facilities, technology and personnel required to execute turnkey projects.

One major issue facing the air-conditioner industry is that of adherence to environmental standards. As per the 1990 Montreal Protocol, ACs should not contain ozone-depleting material with effect from 2003 Central AC. Blue Star and Voltas, who between themselves have a 63% market share, dominate the industry. Carrier Aircon, which entered this segment in 1994, has a relatively modest 12% market share. Carrier plans to increase its presence in this segment in line with its global operations where it is the leader with a 40% world market share. Besides equipment manufacturers, there are also players like the transnational Emirates Trading Agency (ETA), which sources equipment from leading manufacturers, undertaking only the installation work.

This industry has traditionally been a high margin area, but of late, margins have come under pressure due to increased competition. With few orders, manufacturers are undercutting each other to grab installation contracts.The traditional compressor-chiller based market faces threat from vapor absorption machines (VAMs). These are finding favour the world over as a cost-effective and environment friendly alternative. Although the initial outlay is higher, low operating costs more than make up for it. Thermax is the dominant player in the domestic VAM market with a 90% market share. Given the environment friendliness and cost savings, VAMs could displace chillers altogether in the long run. For the existing players in the CAC segment, it may not pose much of a problem as all the major players like Carrier, Voltas & Blue Star have access to this technology from their parent/ part Service and maintenance contract income is in fact emerging as a substantial source of income for the leading players in the country. This is especially true of players who have a large installed base of machines. This revenue stream can be a buffer against a downtrend in AC sales. Some companies have started subcontracting service function to widen reach.

Utility Aspects Of CACs

1 To create a cool ambience

2 For the smooth operation of the equipment/machinery

3.To preserve and store certain raw material/semi-furnished/finished goods

4.To perform various operations like testing and other manufacturing functions under controlled temperatures

Central AC Market Shares

Company % share
Blue star 41%
Voltas 22%
Carrier 12%
Thermax 06%
Suvidha 05%
Others 14%
Advertisement
The following two tabs change content below.
We, at BMS.co.in, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to [email protected]

Like it? Share with your friends!

0
2 comments
BMS Team

We, at BMS.co.in, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to [email protected]

2 Comments

Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Countdown
The Classic Internet Countdowns
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Meme
Upload your own images to make custom memes
Video
Youtube and Vimeo Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format