| Growth |
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The Air-conditioning and Refrigeration Industry began its real journey towards self sufficiency
only in the late fifties starting with only a few assembly units. The Industry, in just four decades
of post-independence, growth achieved some notable milestones. Pre independence the country's
needs were met by imports as a large number of Domestic Refrigerators & Air-conditioners
used to be brought into the country by persons of Indian origin returning back or on a visit who
used to bring the appliances along with their personal effects in terms of the government policies
in vogue.
Interestingly the real spurt in indigenization came only with the foreign exchange crisis in late
fifties when the Air conditioning & Refrigeration Industry in India started producing Appliances
such as Air-conditioners, Refrigerators, Water Coolers, Bottle Coolers, Deep Freezers,
Compressors, and other Air-conditioning & Refrigeration Equipments, Components and
Controls following this.
Today after nearly six decades of phased indigenization the size of the Indian Market for airconditioning
and refrigeration has grown in leaps and bounds as revealed by the following
figures:
| FY 2008 ~ 09 |
Rs/cr |
| AC&R industry market size |
14,200 (US$ 3.0 B) |
| Airconditioning systems |
11,000 |
| Commercial refrigeration |
2,000 |
| AC&R servicing |
1,200 |
Air conditioning Systems:
• Room Air-conditioners : 5,100
• Central Plants : 3,200
• Duct/package : 1,800
• VRF systems : 400
• Precision/Telecom : 500
Air conditioning Systems
• Growth during last 5 years : over 20%
Present penetration level is barely 3%
• Expected growth during medium term (3~5 years) : 15~20%
Segment-wise growth rate trend:
• Room air-conditioners : 20%
• VRF systems : 40%
• Chillers : 10%
• Ducted/package : 10%
• Others (precision/telecom) : 25~30%
Commercial Refrigeration Sector
• Growth during last 5 years : ~10%
• Expected growth during medium term (3~5 years) : 10~12%
Segment-wise growth rate trend :
• Water Dispensers : 20%
• Storage Water Coolers : 05%
• Display/storage equipment : 15%
The year 2008-2009 was a remarkably good year for the Indian Economy with a GDP growth of
over 8.5% with superb future prospects for consumer durables demand. No wonder the air conditioning
and refrigeration industry had also recorded a fabulous growth with unprecedented
increase in sales turnover and volumes of locally manufactured goods.
In India the Rotary compressors dominate the market with 85% share. The industry achieved
phenomenal growth in spite of many hurdles and heavy burden of taxation and VAT etc.
imposed by the state and central governments. |
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| Achivements |
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| In the tenure of its existence, the Association has earned some notable achievements to its credit as follows: |
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It has in the past been representing to the
Government against the difficulties relating
to excise, customs, imports etc. and has
taken active interest in getting these
redressed from the authorities. |
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It is due to the vigorous efforts made by
the Association that Government has been
reducing the excise, and customs duties on
Air conditioning and Refrigeration
Equipments, Appliances and components
and parts. |
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It has helped in manufacturing equipments
and component that were never produced
in the country before. |
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By a forceful plea, it got Industrial
Refrigeration included among 59 Priority
Industries. |
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It has opened avenues for the development
of export of the Industry's products and
helped in the finalization of various standards
of Air conditioning & Refrigeration
Equipment and Appliances under the aegis
of Bureau of Indian Standards. |
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It has got sanction of monetary assistance
and other subsidies for export of this
industry's products. |
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It was largely due to the efforts of the
Association that the Ministry of Industrial
Development & Company Affairs decided
to set up a panel for Air conditioning &
Refrigeration Industry, which was instrumental
in rendering useful service to its
cause. |
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The Association has been successful in
convincing the Government that Air conditioning
& Refrigeration is a necessity and
plays a vital role in the national economy.
This has resulted in providing substantial
excise relief to the Industry. |
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Starting from a humble beginning, the
Association has developed into a well
coordinated and disciplined organization
to link organically this capital-intensive
sector of the economy with other branches
of Engineering Industries, the Government
and growing number of constituents. |
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