‘Demand for energy-efficient ACs rising’

Higher power costs, declining price differential between ACs and inverter ACs spurring demand: report

March 04, 2019 10:34 pm | Updated 10:34 pm IST - MUMBAI

NEW DELHI, 27/02/2014: Saurabh Baisakhia, Business Head, Room Air Conditioners, LG India at the launch of their new line up of latest HVAC and energy solution air conditioners in New Delhi. Photo: Meeta Ahlawat

NEW DELHI, 27/02/2014: Saurabh Baisakhia, Business Head, Room Air Conditioners, LG India at the launch of their new line up of latest HVAC and energy solution air conditioners in New Delhi. Photo: Meeta Ahlawat

The heating, ventilation and air conditioning (HVAC) sector is focusing on energy efficient product offerings to attract customers as well as to comply with energy efficiency norms.

At a trade fair in Mumbai, manufacturers showcased their latest products which, they claimed, were 3 to 10% more energy efficient compared with earlier offerings.

“Our new range of products for this year include light commercial systems, inverter split air conditioners, VRF systems and chillers which are not only energy efficient, quiet and green, but also have some unique features that will cater to the wide array of requirements of our customers, architects and HVAC consultants,” said Sunil Khatwani, business head, system air conditioning division, LG Electronics India.

Gurmeet Singh, CMD, Johnson Controls Hitachi Air Conditioning India Ltd. said, “Our split ACs are so energy-efficient that a developer from Mumbai has placed an order for 30,000 split ACs. Now, we are gearing up to introduce a whole range of more energy efficient projects in the market. Every year we are improving by 3% (in terms of energy efficiency).”

Guruprasad Tiwari, country head, Kruger Ventilation Industries India Pvt. Ltd., which makes large for industrial and commercial applications said their products have improved by up to 10% in terms of energy efficiency and the demand for the products is so high that the company is gearing up to set up a third factory in India. Demand is coming from airports, malls and metro rail, he said.

‘Bright future’

C. Subramaniam, national president, ISHRAE, which is into promoting energy efficiency through trade fairs said, “As the demand for air conditioning solutions is rising, we see a bright future for HVAC and Refrigeration industry in India.”

“While ACs are now considered a necessity, manufacturers have come up with an increasing range of energy efficient ACs. This addresses Indian consumers’ concerns about high electricity bills,” Motilal Oswal said in a research report. It said a shift was now happening towards inverter ACs and this was accelerating growth in the segment. It is estimated that by 2020, 50% of all ACs would be inverter ACs compared with 30-35% in the fourth quarter of FY18.

“We see three key factors driving the shift to inverter ACs. Firstly, the narrowing price gap between fixed and inverter ACs which now stands at ₹3,000 to ₹4000. Secondly, free installation (worth ₹1,500 a unit) and comprehensive warranty of 3 to 5 years for inverter ACs. Thirdly, rising electricity prices which may persuade consumers to look for energy efficient inverter ACs,” Motilal Oswal said.

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