AIR-CONDITIONING - NOT SO COOL AFTER ALL
Article Abstract:
The air-conditioner industry witnessed 35 to 40 percent growth rate between 1992-96. This growth came about chiefly due to the steady decline in the duty structure from 110 percent to 30 percent. The growth rate has come down to 15 percent in more recent times. This decline in growth is attributed to lower GDP growth rates and the credit crunch. The industry comprises of two broad categories - room ACs and central ACs. Room ACs are further divided into window and split ACs. Window ACs form 80 percent of total sales and are available in capacities between 0.75 tonnes to two tonnes. The unorganised sector has a market share of 50 percent in this segment. The split ACs in capacities between 1.5 tonnes to three tonnes are used in offices, restaurants and business establishments. About 90 percent of the demand comes from this segment and 10 percent from the household sector. The central AC segment is technology intensive requiring designing and engineering outputs and is a high entry business. In the Rs5.50 billion room AC segment, the major players are carrier Aircon with a market share of 29 percent, Voltas with a market share of 27 percent and Amtrex holding 18 percent market share. The central AC segment is also worth about Rs5.50 billion. The leading players in this segment are Blue Star and Voltas with each holding 40 percent market share and Carrier Aircon with a market share of 15 percent. The unorganised sector may be hard- hit in future due to the phasing out of chloroflurocarbon (CFC) based products. Both the split AC and window AC segment will witness steady growth rates. With increasing focus on food processing and horticulture, the central AC business will also register steady growth. However, the growth of the industry is hampered by power cuts in summer. (uh)
Comment:
The air-conditioner industry witnessed 35 to 40 percent growth rate between 1992-96.
Publication Name: Financial Express Investment Week
Subject: Business, international
ISSN: 0015-2005
Year: 1998
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A TALE OF TWO COUSINS
Article Abstract:
Indo National and Lakhanpal National, both dry cell manufacturers, have the same foreign technical and financial collaborator, Matsushita Electric of Japan. Matsushita holds 51 percent stake in Lakhanpal and 40 percent in Indo National. During 1997-98, Lakhanpal National's marketshare was 22 percent as against Indo National's 26 percent. While the Indo National's compounded annual growth rate (CAGR) of sales for the five years, from 1993 to 1998, was 15.3 percent, its net profit for the same period showed a growth of 41 percent. Lakhanpal National's CAGR in sales for the same period was 11 percent and net profit 20.5 percent. Indo National's return on networth was over 27 percent and that of Lakhanpal's 15 percent. On the raw material front, Indo National's average cost per ton of zinc for the year ending March 1998 was Rs73,990 and Lakhanpal's Rs68,660. While Indo National's exports are nil, it imports zinc, worth Rs227 million.On the other hand , Lakhanpal Industries exports are put at Rs89 million and imports Rs110 million. (tsm)
Publication Name: Financial Express Investment Week
Subject: Business, international
ISSN: 0015-2005
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
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