The joint venture between Johnson Controls and Hitachi is eyeing Rs 2,000 crore turnover in FY16-17. The company is targeting the Number 2 slot in the Indian market within the next five years, and aims to achieve that target using a unique eco-friendly technique in air conditioning.
The global CEO of the newly christened entity Johnson Controls-Hitachi Air Conditioning, Franz Cerwinka, said on Wednesday that these energy efficient solutions would be the main impetus behind the company’s future growth strategy. “In the last six months since we formulated this joint venture, we have been making a huge progress globally. And here in India, we are breaking records for which I must credit the sizzling heat as well,” Cerwinka said.
Taking about the present market share in India, Gurmeet Singh, executive director (sales, business planning & marketing) said,“In the room AC segment, our total market share in volumes is 11 per cent which makes us a clear number three in the market today. We have around 10 per cent market share in split AC and around 22 per cent in window AC which we intend to grow by increasing the product portfolio and penetration of our distribution network in tier II and tier III towns.”
“VRF (variable refrigerant flow) is one category which is expected to grow at a CAGR of 17 per cent, so we have invested in infrastructure and technology to get big growth in this segment. With 20 per cent YoY growth, and present turnover of Rs 1,700 crore, we expect to grow around Rs 2000 crore by FY16-17,” he added.
On the significance of the Indian market and how the joint venture is going to benefit consumers, Cerwinka said, “India will be the third-largest economy in the world by 2030 and it has always been a very promising and fast growing market. Post this joint venture, we have upped the ante for our business expansion plans here and are focusing on developing more advanced technologies and products that surpass others in terms of their energy efficiency.”
The company also introduced new air conditioners, claimed to be “highest” efficient currently in the Indian market. Atsushi Ohtsuka, managing director, said that, “Keeping in view our customer’s need and our I-Care philosophy, this year we have launched Kashikoi 5400i, Kashikoi 200i H&C, I-Connect and Toushi Range in the room AC segment.” He attributed the high efficiency to I-Clean Plus technology which automatically cleans the AC filter every five hours.
“Today, we have India’s best energy efficient split inverter AC range – Kashikoi 5400i. Its 1.0TR-5 Star with 5.75 ISEER and 1.5TR- 5 Star with 5.00 ISEER are the highest in the market as of date. About 36 per cent of our inverter AC range have BEE 5- star rating, which is again the highest in the industry,” he said.