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Godrej Appliances picks up an agreement for an astounding Rs.207 crores from the Energy Efficiency Services Ltd

Godrej Appliances

Godrej Appliances bags a contract worth Rs. 207 crore from the Energy Efficiency Services Ltd (EESL) to supply, install and commission 52,000 smart air-conditioners to replace the current old-air conditioners. The government plans to replace the old air-conditioners with more efficient appliances that consume 30% lesser power.

India: Godrej Appliances, the consumer durables segment of the Godrej Group, in an official statement stated that it has acquired a contract worth Rs. 207 crore from the Energy Efficiency Services (EESL) for commissioning, supplying and installing 52,000 green inverter air-conditioners (ACs) for government and railway establishments.

EESL is a joint venture of NTPC LTD, Power Finance Corporation, Rural Electrification and Power Grid Corporation, under the ministry of power. It is a Super Energy Services Company (ESCO). Basically, the contract is for manufacturing, supplying, designing, installing and servicing 52,000 units of the super-efficient Godrej NXW green inverter ACs having 5-star energy. Godrej NXW is a premium sub-brand of Godrej.

The managing director of EESL in an interview, claimed that the Government plans to replace the current old air-conditioners in government buildings with super-efficient appliances that will consume 30% less power. By the end of March 2018, 1500 buildings will be covered and by June, all 2500 central government offices and public-sector company buildings will be covered.

The requirements laid down by EESL were for air conditioners with minimum ISEER of 5.20. The highly efficient ACs that are being supplied for the fulfillment of this contract are specially designed to suit the Indian climatic conditions. It is anticipated that the current generation of five-star inverter AC consume 50% less energy as compared to the ACs ten years back.

According to TechSci Research, India is one the major developing economies with a huge middle-class population and growing per capita income. In comparison to other developing countries, the market penetration of air conditioners is lower in India, which offers a huge opportunity for leading air conditioner players. With the production facilities of almost all major global players in India, the country is also emerging as a major production hub. In the recent times, the outlook of consumers has changed drastically towards air conditioners. The country experiences hot and humid summers for 4-6 months, because of which majority of air conditioner sales take place during this period. Introduction of super-efficient technologies, reduction of prices, increasing number of household units are some of the factors that are anticipated to boost the sales of air conditioners in India in the next five years.

According to the recently published report by TechSci Research, India Air Conditioners Market, By Product Type, By End Use Sector, By Tonnage Capacity, By Top City Competition Forecast & Opportunities, 2011–2021”, the air conditioners market in India is anticipated to cross US$ 6 Billion by the end of 2021. Light commercial air conditioners segment dominated the country’s air conditioners market in 2015, and the segment is anticipated to maintain its dominance over the next five years as well, owing to their various advantages such as energy efficiency, lower running cost, easy availability and integration of latest technologies. Southern states in India generates the highest revenue from air conditioners in the country, followed by northern states. Few of the leading players operating in India air conditioners market includes Voltas, LG, Daikin, Samsung, Blue Star and Hitachi, among others.

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