Carrier Midea to initiate production of Residential Air Conditioning

India: Carrier Midea India is going to start the production of new range of residential air conditioners in Haryana, in 2016, to maintain the prices of this segment. Carrier Midea India Private Limited (CMI) was set up in 2012 to combine the strengths of two global giants in air-conditioning, Carrier and Midea. The joint venture was undertaken to combine Midea’s world-class design and manufacturing expertise in residential air conditioning and Carrier India’s strong Pan-India distribution network.

The company has launched its new range of Air conditioners for all consumer segments. CMI has exclusive rights to manufacture and sell Carrier and Midea Air Conditioners as well as the other Midea brand home appliances.

According to TechSci Research, being localize i.e. producing and selling in the same country in which they are operating would help the giants to bring down their input costs and will help the company to offer their products at reasonable prices. CMI should start offering new products with extra features at lower prices than their competitors. As the company is about to start the production of its Air conditioners locally, this would bring the input cost of Air conditioners down. Moreover, continuous cost innovation is a never ending process, leading companies such as LG, Samsung, Daikin etc. are investing more and more so that they can start with this process to lower the prices of their Air conditioners.

According to a recent report published by TechSci Research “India Air Conditioners Market Forecast & Opportunities, 2020”, the Indian air conditioners market is projected to grow at a CAGR of over 10% during 2015-20. Accounting for a lion’s share of the air conditioners market, split air conditioners segment was the highest revenue generator, followed by VRFs and window air conditioners in 2014. The market share of window air conditioners has been declining over the last few years on account of decreasing price gap compared to split ACs, due to which many leading companies such as Samsung and LG have exited from the windows air conditioning segment while other major companies like Voltas, Daikin, Blue Star, etc., have lowered the production of window air conditioners in the country.