Japanese air-conditioning firm Hitachi Homes and Life Solutions has expected its sale to cross Rs 2000 crore in the current financial year and to increase its penetration in the Indian residential air-conditioning market post their JV with Johnson Controls.
Hitachi Appliances entered into a global joint-venture with the US-based company Johnson Controls in October 2015 and both companies are leveraging their presence across South East Asia, US and Middle East.
The company currently occupies 11 per cent of the market share in the residential airconditioning market and intends to be number two in next two years.
“By leveraging the strengths of both the companies, we will maximize our synergy and competitiveness to drive sustainable growth as a leading air-conditioning company in India and in the world. Innovation and development of the most energy efficient and environment friendly products will be our key priority to establish our brand’s success and unique identity,” said Franz Cerwinka, the global CEO of Johnson Controls - Hitachi Air Conditioning.
Franz stated that more energy efficient and eco-friendly air-conditioning solutions will be main impetus behind the company’s future growth strategy and this will also be reflected in the new brand identity of the company.
“VRF 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 Y-O-Y growth, and present turnover of Rs 1700 crore we expect to grow around Rs 2000 crore by FY16-17,” said Gurmeet Singh, executive director (Sales, Business Planning and Marketing) Hitachi Home and Life Solutions (I) Ltd.
The company has around 10 per cent market share in Split AC and around 22 per cent in Window AC and we intend to grow by increasing the product portfolio and penetration of distribution network in tier 2 and 3 towns, Gurmeet added.
Franz added that India has always been a very promising and fast growing market. Post this joint venture, we have upped the ante for our business expansion plans in India and we are focusing on developing more advanced technologies and products that surpass others in terms of their energy efficiency.
But, the company declined to add any new assembly line in India.
BW Reporters
Haider Ali Khan is an alumnus of IIMC. He holds a degree in English Journalism from the prestigious campus. His passion includes Aviation, Technology, Politics and Sports.
