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As the part of the syllabus of MBA program. We are assigned some practical and theoretical work in
partial fulfilments of the segments for the Semester Third. We have to prepare a comprehensive report
on any one industry for subject "Management Research Project" that is also known as MRP - I.
The basic purpose of this project is to enhance the knowledge of students about the industry in its
totality and appreciate the use of an integrated approach in understanding the environmental issues and
problems. This makes students more aware about Industry and its position and makes student capable in
analyzing the Industry's position in all shares. This may also enhance student's analytical ability.
So far as the selection of the industry is concerned, on Macro analysis of Air Conditioner Industry in
India.. So we have selected this Industry to gain better knowledge of the state of Industry its key success
factors which makes this industry an essential part of consumers life.
So our aim is to analyze the industry and know its forces which run the industry. To know the
technological changes those have taken place in the industry. We also have analyzed Political,
Economical, Social and Technological Factor of Industry and then found out strength, weakness,
opportunity and threat of the industry.
This research really enhances our knowledge about industry and its various undertaking. We gained lot
of knowledge from this project. We hope this will also help in future.
EXECUTIVE SUMMARY
Air conditioner industry is one of the industries which have shown moderate growth over the period of
years. Although the liberalization of the Indian economy have seen the emergence of many leading
players, the air conditioner industry consists of only a few companies like Blue Star, Hitachi Home
Appliances, Godrej Appliances, Daikin Air Conditioner, LG, Samsung, Carrier Air- Conditioning, etc.
which account for the major market share in the industry.
Air conditioner industry is bound to be affected by the policies occurring in the consumer durables
industry as the air conditioner industry is a part of white goods section of the consumer durables. With
the consumer durables industry set to increase at a rate of 10 -15% because of rise in living standards,
easy access to consumer finance, and wide range of choice, as many foreign players are entering in the
market and hence increasing the competitive rivalry among the firms. All this aspects of consumer
durable are covered in this report with the aid of a complete industry analysis in terms of the following
abstracts.
Index
Sr.No
1
Title Name
Chapter 1
INTRODUCTION
1.1
History
1.2
Overview
1.3
Major players
1.4
Product application
1.5
Chapter 2
Market Dynamics
Chapter3
Government Intiative
Chapter4
PEST Analysis
Chapter5
Chapter6
SWOT Analysis
Chapter 7
CONCLUSION
Chapter 8
Bibliography
Page No.
1.Introduction of industry
1.1 History
Inventors who came before Willis Haviland Carrier tinkered with cooling machines. But it was Carrier's
creation that launched the modern idea of air conditioning. To mark the 110th anniversary of his
invention, we look back at the long story of a/c.
1758 All liquid evaporation has a cooling effect. Benjamin "I invented everything" Franklin and
Cambridge University professor John Hadley discover that evaporation of alcohol and other volatile
liquids, which evaporate faster than water, can cool down an object enough to freeze water.
1820 Inventor Michael Faraday makes the same discovery in England when he compresses and liquifies
ammonia.
1830s At the Florida hospital where he works, Dr. John Gorrie builds an ice-making machine that uses
compression to make buckets of ice and then blows air over them. He patents the idea in 1851,
imagining his invention cooling buildings all over the world. But without any financial backing, his
dream melts away.
1881 After an assassin shoots President James Garfield on July 2, naval engineers build a boxy
makeshift cooling unit to keep him cool and comfortable. The device is filled with water-soaked cloth
and a fan blows hot air overhead and keeps cool air closer to the ground. The good news: This device
can lower room temperature by up to 20 F. The bad news: It uses a half-million pounds of ice in two
months and President Garfield still dies.
1902 Willis Carrier invents the Apparatus for Treating Air for the Sackett-Wilhelms Lithographing and
Publishing Co. in Brooklyn, N.Y. The machine blows air over cold coils to control room temperature
and humidity, keeping paper from wrinkling and ink aligned. Finding that other factories want to get in
on the cooling action, Carrier establishes the Carrier Air Conditioning Company of America.
1906 Stuart Cramer, a textile mill engineer in North Carolina, creates a ventilating device that adds
water vapor to the air of textile plants. The humidity makes yarn easier to spin and less likely to break.
He's the first to call this process "air conditioning."
1914 Air conditioning comes home for the first time. The unit in the Minneapolis mansion of Charles
Gates is approximately 7 feet high, 6 feet wide, 20 feet long and possibly never used because no one
ever lived in the house.
1931 H.H. Schultz and J.Q. Sherman invent an individual room air conditioner that sits on a window
ledgea design that's been ubiquitous in apartment buildings ever since. The units are available for
purchase a year later and are only enjoyed by the people least likely to work up a sweatthe wealthy.
(The large cooling systems cost between $10,000 and $50,000. That's equivalent to $120,000 to
$600,000 today.)
1939 Packard invents the coolest ride in town: the first air-conditioned car. Dashboard controls for the
a/c, however, come later. Should the Packard's passengers get chilly, the driver must stop the engine, pop
open the hood, and disconnect a compressor belt.
1942 The United States builds its first "summer peaking" power plant made to handle the growing
electrical load of air conditioning.
1947 British scholar S.F. Markham writes, "The greatest contribution to civilization in this century may
well be air-conditioningand America leads the way." Yet somehow people still say a brilliant new idea
is "the best thing since sliced bread."
1950s In the post-World War II economic boom, residential air conditioning becomes just another way
to keep up with the Joneses. More than 1 million units are sold in 1953 alone.
1970s Window units lose cool points as central air comes along. The units consist of a condenser, coils,
and a fan. Air gets drawn, passed over coils, and blasted through a home's ventilation system. R-12,
commonly known as Freon-12, is used as the refrigerant.
1994 Freon is linked to ozone depletion and banned in several countries. Auto manufacturers are
required to switch to the less harmful refrigerant R134a by 1996. Brands like Honeywell and Carrier
develop coolants that are more environmentally friendly.
2003 In "Hey Ya," Andre 3000 raps, "What's cooler than being cool? Ice cold!" They aren't talking about
air conditioning.
1.2 Overview
Air-conditioner-The Product:
An AC is primarily classified into three broad segments unitary products, packaged airconditioners (PAC) and ducted splits and central plants. The unitary products would include the window
ACs and the mini-splits (without ducts).
Room air conditioners operate on electricity or gas and are enclosed in a single cabinet. They
blow the conditioned air directly into the room and do not have air ducts leading to and from them.
Window air conditioners fit into the lower part of a window and can be moved from window to window
and thus the name, Window ACs
Central air conditioners use electricity or gas. They can supply conditioned air to a number of rooms or
to an entire building from one central source. Fans blow the conditioned air through air ducts from the
air conditioner to the rooms. Central conditioners have a number of advantages over other kinds. For
example, all the equipment for air conditioning a large area is located in one place. This reduces the cost
of cleaning and repairing. Central conditioners can also be zoned i.e. they can supply air of different
temperature to different parts of a building. These ACs are ideal for rooms with low heat loads. They are
available in the capacity range of 0.5 TR to 3 TR. The room AC sector caters to residential premises,
offices and small establishments. Split ACs are so named because the unit is 'split' into two parts. The
compressor and the condenser forming an outdoor unit and the cooling coil remaining as an indoor unit.
Split units can be with or without ducts. In PACs, the unit is placed in a separate room and the cold air is
carried through ducting to the required areas. It is suited to those establishments that are not large
enough to go in for a central system. Ducted splits and PACs cater to segments requiring cooling
capacity of less than 15 TR. The central air-conditioning segment is more technology intensive and
project oriented. It caters mainly to institutional clients where capacity requirements are usually 50 TR
and upwards.The demand for nonducted products grew steadily in the latter half of the 1990s.The
demand for mini-spilt ACs has grown at a higher rate as against window ACs mainly because of a lower
base. The demand switch from mid sized ducted products, such as packaged ACs or ducted splits to mini
splits is also one of the larger growth rates in the latter segment. The demand for non-ducted products
i.e. the window air conditioners & mini splits come from both households & corporate while the demand
for ducted products comprising of the central plants & packaged air conditioners & ducted splits come
only from corporate.
Air conditioners have become a part of practically every household keeping in mind the adverse
climatic changes which have taken place. There was a time when the climate and temperature was pretty
sober to not be using air conditioning in the house, but today, one simply cannot do with it. Air
conditioners help in decreasing humidity and provide cold freezing air to roam about in the house, thus
making the lives of people easy and comfortable. It is because of air conditioners that we find the heat
and the summers bearable. In the United States, almost 88% of the household population has air
conditioners installed in their house, which makes this luxury goods demand higher and most sought
after. In many countries, people are able to and have the capability of being able to afford at last one air
conditioner in the house, whereas some really well off families can even afford to install two to three air
conditioners in their house. This product has been expanding itself greatly by entering into more and
more houses as it is the best and the only way to lead a better and easeful life. The fact that people are
getting used to air conditioners and their habit of such products will always pull them back to buying air
conditioners because once you are used to their freezing temperatures, you cannot really adjust and live
without it. So here is a list of the top 10 best air conditioner brands in the world, which are the most
popular in demand among people, belong to different countries and which have made their place in the
global market of luxury goods.
1. Daikin
This Japanese multinational company has successfully beaten all the other brands of air conditioners and
made its way to the top of the list claiming to be the best air conditioner brand in the world. Using some
efficient and effective Japanese technology, their air conditioners are the most in demand in the global
market. They have recently introduced the Daikin Inverter AC, which air conditions your house or office
by consuming lesser power, and this has been their weapon to beat any other brand when it comes to
quality and affordable service for people.
2. Hitachi
Hitachi is a multinational company located in Tokyo, Japan. Hitachi has produced some of the best types
of air conditioners for people all across the globe, using the unbeatable type of technologies such as the
amazing self cleaning system and a great cooling effect. This company is popularly known for its
production of appliances through sustainability by reducing the emission of greenhouse gases and also
indulging into low power consumption.
3. Blue Star
Blue Star was founded in 1943 by an entrepreneur, and has very recently teamed up with another global
company, Hitachi. The air conditioners of this company are popular and high in demand because of the
latest technology used in the ACs and the affordable prices tagged on to them. Their air conditioners are
ideal for use as they have been developed and equipped to suit a consumers requirements to the fullest.
4. Carrier
Bills Carrier invented this global company in 1920, which has become one of the most reliable and
efficient air conditioner brands in the world. Weathermaker is a sub brand of Carrier which specials in
producing the best air conditioners using their proprietary operating system, the ACE. Carrier as a
company is known to produce some of the best and world class appliances through reduced gas
emissions and energy and water consumption.
5. Whirlpool
Whirlpool is another brand of air conditioners whose headquarters are located in Michigan, United
States. Whirlpool has been counted as one of the favourite brands for people to look out for some of the
best air conditioners at affordable prices is because of their newly developed technologies in the ACs
such as turbo cool and the MPFI technology. The MPFI technology as been this companys unique point
as it provides a proper circuit design for rapid heat exchange, with the help of a Japanese compressor
and usage of all its copper internals.
6. Voltas
Voltas is an Indian multinational company established in 1954. The headquarters are located in Mumbai,
India and this company has been exclusive with its production in air conditioners and other cooling
systems. Due to their focus on just one type of electrical appliance, Voltas has gained the trust of
millions of people across the globe, the evidence of which could be seen in the tallest building of the
world, the BurjKhalifa, which is completely air conditioned by Voltas air conditioners.
7. Panasonic
Panasonic is a company founded in Japan in 1918 and was earlier known as Matsushita Electrical
Industrial Co. Ltd. This Japanese company has produced and given the world some of the most
developed air conditioners, which have the best kind of technology equipped within it. The advanced
features in their air conditioners include Econavi and nanoe-g, which basically makes sure that once you
switch on your AC, the air conditioner functions automatically and handles its operations itself with
giving any manual commands.
8. L.G.
Another yet remarkable company originated from South Korea, L.G., Lifes Good has climbed the
ladder of success pretty fast and quick, and also efficiently. Their efficient and effective use of
technology and equipments has enabled them to produce some of the best household appliances, the
most sought after among them being their air conditioners. Their air conditioners are equipped with
various technologies such as jet cooling system, plasma filtration and inverter technology, which has
made their ACs stand out at the global market and brining in huge revenues in the company. The
minimal usage of Polyvinyl Chloride (PVC) for the air conditioning duct is also one of the reasons as to
why this company is so desirable.
9. Samsung
This South Korean company had begun with its first manufacturing unit in Noida, India, and since then
there has been no stopping by for Samsung. Samsung is now one of the largest companies in the global
market and has expanded to various different countries to establish their presence. Apart from offering
various household appliances such as television and phones, the air conditioners of this company are
widely known for their uniquely developed technologies such as humidification, star rating and turbo
cleaning.
10. Electrolux
Electrolux has come a long way with their wide range of kitchen and home appliances for the global
population on a large scale. This global company can provide you with almost every household item you
require, and their air conditioners are one of the products which are moving at a rapid speed and
increasing this companys sales and revenue. Electrolux has come up with both split as well as window
air conditioners. The unique selling point f their air conditioners is the oxyguard, which is a three stage
filter providing great cooling effect in window AC. Their split air conditioners are modified and
developed with air cleaning technology, thus making this brand one of the most desirable.
Important parts and components of an AC are a Compressor that is known as the heart of an AC,
Condenser Coil, which is a network of tubes, an Evaporator that absorbs heat, an Air filter, an Air
Handling Unit featuring a fan to dispense air outside and an efficient Drainage system.
These are kits of 2 units, one internal and another external. The indoor unit installed inside a room
intakes warm air and throws in cold air. The outdoor unit on the other hand is installed out of the house.
It contains the compressor and is linked to the internal unit via drain pipes and electric cables. This
external unit throws out the warm air.
Advantages
3. Tower AC
These are also known as floor-standing air conditioners. Like split ACs, a tower AC set consists of 2
units- one internal and an external. However, the indoor unit doesnt need wall installation. It rather
occupies some space on the floor. Tower air conditioners usually have high cooling capacity and suitable
for very large rooms.
Advantages
4. Cassette AC
These space-saving ACs are shaped like cassettes and are designed to be installed on ceilings. The panel
of these air conditioners is designed to blend with all kinds of home dcor. They are stylish, and are
known to deliver fantastic performances. Most cassette type air conditioners require no ducting. They
are perfect for large spaces where windows or split AC may not reach out.
Advantages
Able to cool large areas where other ACs dont reach out
This fairly new design introduced by Panasonic can be mounted close to a ceiling or at the window
level. Basically, this is a smaller version of the split type air conditioner and costs less than the former.
The indoor unit features a newly designed diagonal propeller fan for efficient and fast cooling. Improved
blade shape curvature and larger intake grill further aid for efficient performance.
Advantages
Window AC
Split AC
Cassette AC
1.
Suitable For
Large indoor
spaces
2.
Noise
Relatively on the
higher side
Minimal noise
Silent operation
3.
Capacity range
0.8 to 2 ton
1 ton to 4 ton
4.
Advanced features
Humidity control,
dust filter, bacteria
filter
5.
Interference with
home decor
Slight possibility to
interfere with window
curtains and drapes
Barely interferes
with interior decor
6.
Ease of installation
Minimal effort
required
Needs specialised
false ceiling
1.4.2Features
1. Tonnage
The tonnage of an AC needs to be decided depending on the rooms area. The following table will give
you an idea regarding the apt tonnage for your room.
Tonnage
0.75
Below 120
120 150
1.5
150 250
250 400
2. Energy Efficiency
The ever-increasing electricity bills have made it necessary for ACs to be energy efficient. This can be
easily verified by checking the ACs rating. Every AC comes with Energy Efficiency Ratings (EER) that
have been standardized by the Bureau of Energy Efficiency (BEE). More number of stars for an AC,
higher the energy efficiency.
3. Basic Functions
Adjustable louvers, digital controls, remote control and user-friendly modes are basic functions that
every modern day AC must possess. A sleep mode and an auto restart function are also common and
essential. One can easily change the settings according ones preference.
Air Filter
Air filters weed out dust, pollen and bacteria during the cooling process. They ensure that the AC works
hygienically. They need to be cleaned from time to time for better health of the AC as well as inhabitants
of the room where it is placed. Air Filters are governed by Minimum Efficiency Reporting Value
(MERV) ratings, higher the ratings better the air filter.
Dehumidification
ACs dehumidification feature is essential to minimize the humidity level in your room. This feature
reduces the moisture level while cooling, to ensure better comfort especially during humid days.
Noise Level
Generally, ACs operates at a 50dB noise level. Many ACs fall in the range of 30-60dB. To put this in
perspective, on an average a vacuum cleaner functions at a 70dB noise level.
Accessories
While accessories like a brush and a cover are handy, others like a replacement filter and an extra remote
might work in your favor during trying circumstances. Use a brush to dust the AC and ensure it does not
gather more dust by covering it when not in use. An alternate remote will serve you in case the buttons
of the one in use refuse to obey your command.
Maintenance
Air conditioners require regular maintenance. Generally, AC companies provide four services a year.
One must ensure to renew the servicing contract for proper maintenance. However, one must regularly
dust the body of an AC with a duster or a cloth and cover it for durability.
The conventional device is controlled by switches, which makes fast refrigeration/heating difficult to
implement. The direct current inverter technology aims to solve speed overshoot issues. This type of air
conditioner is controlled by digital signal processing, using advances controlling technologies and direct
current frequency conversion rotary compressor. The digital signal processing is in a position to control
temperature accurately to save time and power. The closed-loop controlled circuit of interior flow fan
makes the entire method stable.
2) Network control technology:The controlling interface of internet is added to the existing inverter air conditioner. The remote control
and remote diagnosis can be had through the internet. Meanwhile, the centralized control is also
optimized by this technology. The controlling signal is transmitted by telephone lines or optical fiber
cables. The signal is displayed on the screen to implement remote control, remote diagnosis, or
software updating.
3) Noiseless technology and replacement technology for refrigeration material:Noiseless technology optimizes the interior construction of the device, imitating the flow direction of
natural wind and minimizing the noise level. The replacement technology for refrigeration is under study
to safeguard the environment much better. The material used in traditional devices is harmful to
ozonosphere and should be forbidden all over the world.
4) Air supply technology and wellness technology:The super air supply system is applied in advanced devices. The airflow control technology can also
supply air from each direction. The application of the wellness technology creates a new idea, namely,
negative oxygen ion, noiseless, antisepsis, and other technologies.
The market study covers AC drives by application which includes pumps, fans, compressors, conveyors,
extruders and others. On the basis of end-use industry the AC drives market has been segmented into oil
& gas, water & wastewater, power generation, building automation, food & beverage, metals & mining,
chemicals & petrochemicals and others which constitute industries such as cement, textile, and Pulp &
paper industries.
In terms of region, the market is segmented into North America, South America, Europe, Asia-Pacific,
and the Middle East & Africa. Each segment has been analysed with respect to its market drivers,
growth trends, and future prospects.
Oil & gas is the largest end-user of AC drives market and accounted for a share of 15% in 2014. The
water & wastewater is expected to have a high growth rate, owing to rapid urbanization and
industrialization, especially in developing regions such as Asia-Pacific and the Middle East & Africa.
Asia-Pacific currently holds the largest market share in terms of value on the account of rapid
urbanisation and industrialisation from the region.
The Indian AC major Voltas is the most favourite AC brand of Indian people. It is offered by an Indian
conglomerate the Tata Group. The product is manufactured by Voltas Limited, a subsidiary of the Tata
Group, headquartered in Mumbai, Maharashtra. The Voltas ACs are famous for their performance and
high durability. Voltas All Weather Smart ACs are becoming increasingly popular day by day. Voltas is
popular in India as well as abroad alike. The price range of Voltas is Rs. 25,000 Rs. 55,000. Some of the
most popular Voltas AC models are mentioned below:
2. Samsung
This South Korean private conglomerate is spreading its wings in India further and further everyday. The
air conditioners from Samsung are amongst the most sought after and most popular in India. Samsung
ACs are famous for their features and the level of comfort they offer. The prices range of Samsung is Rs.
20,000 Rs. 70,000. Some of the most famous Samsung AC models are mentioned below:
Triangle Inverter AC
AR18JV5DAWKNNA 1.5 TR
AR18JC5HATPNNA
AR18JV5HATQNNA
3. Daikin
Daikin is a Japanese major operating for almost a century now. This speaks volumes of Daikin's success
in the world market. The brands popularity has increased manifold ever since it started operating in India.
The brand owes its popularity to its high-quality products and affordable rates. The prices range of Daikin
ACs is Rs. 18,000 Rs. 50,000. Some of the widely sold AC models from Daikin are mentioned below:
FTXR Series
FTXG Series
FTXR Series
DTKM Series
ATKM Series
4. LG
Another South Korean brand that enjoys great command in Indian consumer appliances market is LG.
LG's air conditioners are appreciated for quality. Apart from that, great service and performance,
affordable price and smart cooling are what LG boasts of. The price range of LG air conditioners varies
between Rs. 18,000 and 78,000. Some of the most popular AC models from LG are mentioned below:
BSA18IMA
BS-Q186C8A4
BSA12IMA
BS-Q126B8R8
5. Whirlpool
FANTASIA INV (1 T)
6. Videocon
Videocon is an Indian multinational major manufacturer of consumer electronics and a household name in
India. It was founded in 1979 and is headquartered in Mumbai, Maharashtra. Videocon not only makes
excellent air conditioners but also is rated amongst the best in the industry in terms of refrigerators, TVs,
microwave ovens and so on. The prices of Videocon ACs start from Rs. 20,000 and go till Rs. 68,000.
Some of the best Videocon AC models are mentioned below:
VSQ55.DT3-MUA
VSA55.RW1-MAA
VSA55.WW1-MAA
VSN55.RV1-MDA
7. Blue Star
Founded in 1943, Blue Star is one of the oldest consumer electronics companies based in India. The
company started off with reconditioning refrigerators and air conditioners. The company feels proud of
having catered to the cooling needs of a large number of residential, commercial and corporate customers
by providing best air-conditioning services. The price range of Blue Star ACs begins from Rs. 22,000 and
ends at Rs. 1,00,000. Some of the most popular Blue Star AC models are mentioned below:
8. Hitachi
Hitachi is a famous consumer electronics conglomerate from Japan founded in 1920 and based in Tokyo,
Japan. It offers some of the most energy efficient air conditioners. Quality air conditioners are something
that Hitachi thrives on. Its ACs have features like anti-bacterial koukin filter and auto climate technology.
The price range of Hitachi ACs is Rs. 25,000 Rs. 70,000. Some of the widely sold Hitachi models are
mentioned below:
Zunoh 300f
Zunoh 200f
Kaze Neo
Kashikoi 400i
Kashikoi 200i
Summer TM
9. Haier
Haier from China is rated amongst the leading consumer electronic brands in India. It produces, sells and
markets a wide range of consumer goods such as air conditioners, refrigerators, washing machines and the
likes. Haier ACs are lauded for their excellent cooling, longevity and superior performance. Moreover,
low energy consumption and reliability are the features that set Haier apart from the rest. Haier ACs
prices range is Rs. 18,000 Rs. 45,000. Some of the most trusted Haier AC models are mentioned below:
HSU-18CKCS(R2D)
HSU-13CNFG5N
HSU-24CXAS3N-BWNA
HSU-13CNFR5CNA
10. OGeneral
Bureau of Energy Efficiency has honoured O General with five stars for its energy saving features. It
commands a great deal of trust in all quarters of Indian consumer electronics. It is a joint venture of
Japan's Fujitsu General and Dubai's ETA-ASCON STAR formed in 2000. It ensures excellent cooling
service to its users on a consistent basis. O General ACs price range is Rs. 25,000 Rs. 60,000. Some of
the most popular O General AC models are mentioned below:
ASGA24FMTA - 2 Ton
Standards now at 8% higher efficiency for star-rating on split 1.5 ton ACs and higher
3) GOVERNMENT INITATIVES
Energy Performance Standards for Air Conditioners Comprehensively Upgraded in India
Standards now at 8% higher efficiency for star-rating on split 1.5 ton ACs and higher
Mobile-based application launched to help consumers calculate energy consumption
Technological improvements driving higher energy efficiency in the HVAC industry
NEW DELHI, May 2, 2012: The Bureau of Energy Efficiency (BEE), a statutory body under the Union
Ministry of Power, has upgraded the requirements for star rating of split type room air-conditioners. This
legislation came into effect in January this year and raised the energy efficiency standards by about 8%
for split air-conditioners for the same rating band. The change is intended to help raise consumer
awareness on saving energy and creating more energy efficient appliances across the spectrum for this
industry. The star rating scheme, under the BEEs standards and labeling programme is especially
relevant in view of the upcoming freeze on Hydro-chlorofloro-carbons (HCFC) under the Montreal
Compact on Environment (Montreal Protocol) in 2013 and the effort of getting prepared for future GWP
(Global Warming Potential) legislation without any energy penalty. For the Indian industry, this marks a
substantive step forward in not only averring to the rising awareness and readiness on the policy side to
taking control of the most pertinent energy efficiency issues, but also marks a firm movement towards a
healthy public-private partnership in the area of energy reforms.
Consumer awareness is the single most important factor in the success of energy efficiency movement
thus far. To further empower consumers, a mobile-phone based application called AC Power Saver
has been developed that enables consumers to calculate energy consumption and savings right on their
mobile devices. This application will be available for Android, Blackberry and iPhone users free of
charge. BEE also is also planning to provide touch screen kiosks replicating the AC Power Saver
calculations, at a few designated showrooms across India. These tools will help consumers calculate the
expected annual electricity bills and the potential savings. Users can get an idea about their savings on
their electricity bills if they buy higher star rating air conditioners. For a wider reach, a dedicated web
site www.SaveEnergy.co.in has been created with all necessary information including the energy
calculator.
The campaign to educate consumers comprises several strategic initiatives. Air conditioner showroom
salesmen are being trained and oriented on the star labeling criterion so that they can explain to
consumers the tangible benefits of using energy efficient air conditioners. BEE has already trained 1,544
salesmen in India across 6 cities and plans to continue with this effort. These trained salesmen help
consumers make an informed choice with respect to energy efficiency while buying home air
conditioners.
Emerson Climate Technologies and International Copper Promotion Council (India) continue to support
BEEs national education program on star labeling for air conditioners that educate consumers to use
higher energy efficient products.
Speaking on the occasion, Dr. Ajay Mathur, Director General, BEE said, Energy is critical for India,
and the demand for clean and efficient energy devices is growing rapidly. We are happy that our initial
steps in introducing star labeling for air-conditioners has borne such good results. It is our resolve to
further augment this initiative by including as wide a section of consumers as possible and to do this we
have embarked on a variety on new measures to educate and engage the public at large as well as the
manufacturers and retailers.
Emerson Climate Technologies, an engineering technology innovator, has been actively collaborating
with BEE to build awareness of the star rating program. According to Mr. Deepak Takkar, Sr. Vice
President Sales & General Manager Cold Chain, Emerson Climate Technologies (India) Pvt. Ltd.,
Research shows that every watt of energy saved at consumption results in four watts less energy
produced, factoring in the generation and T&D losses. The adoption of star rating in air-conditioners
significantly supports energy conservation and improvement of power efficiencies in India. He added,
The industry plays a key role in augmenting the success of Governments thrust on environmental
protection. In the air-conditioning industry, on the manufacturers side, we have introduced Copeland
Scroll compressors in the Indian residential AC market for the first time to provide optimum energy
savings and comply with the higher star rating. Copeland Scroll technology has been extremely
successful in the commercial AC segment around the world for many years. We believe that with the
focus on empowering consumers with efficient and reliable technologies like Copeland Scroll, and
awareness tools like the "AC Power Saver mobile app, India stands to greatly improve the energy
situation and bridging the supply-and-demand gap.
According to Mr. Sanjeev Ranjan, CEO, International Copper Promotion Council (India), ICPCI has
been actively engaged since 2007 with the Air Conditioner Industry by promoting the life cycle cost as
the main attribute to drive consumer purchase decisions. Coppers better thermal and electrical
properties do help in improving energy efficiency performance of air conditioners, which in turn helps
achieve higher star rating more cost effectively. ICPCI as a part of Copper Alliance, led by International
Copper Association is working for technology advancement by focusing on reducing the material cost of
energy efficient air conditioners through the introduction of smaller diameter copper tubes for heat
exchanger. Today, with the launch of the upgraded star-rating labeling program, Indian consumers can
now buy air conditioners that save energy and money. We do appreciate the admirable work done by
BEE and will continue to support it in its endeavor to promote and implement the star labeling program
across the country.
The star labeling program for air-conditioners, frost free refrigerators, tubular florescent lights, and
distribution transformers began in May 2006 in a voluntary phase. In the air conditioner segment, 70%
of the organized players adopted it in the voluntary stage, which prompted BEE to make it mandatory
from January 2010. Since star labeling was a new concept for appliance showrooms and end users, BEE
partnered with Emerson Climate Technologies and International Copper Promotion Council (India) in
2008 to start several initiatives to educate the market on the benefits of star labeling. Training sessions
were conducted for store salesmen throughout India. After the education program, a survey was
conducted across 19 cities covering over 1,200 salesmen and 400 users to understand their perception on
star labeling. The survey results showed that end users cared about energy efficiency, price and brand.
The survey also indicated that salesmen needed more education and sales tools to explain to the end user
the concept of payback period.
About BEE: The Government of India set up Bureau of Energy Efficiency (BEE) on March 1, 2002
under the provisions of the Energy Conservation Act, 2001. The mission of the Bureau of Energy
Efficiency is to assist in developing policies and strategies with a thrust on self-regulation and market
principles, within the overall framework of the Energy Conservation Act, 2001 with the primary
objective of reducing energy intensity of the Indian economy. This will be achieved with active
participation of all stakeholders, resulting in accelerated and sustained adoption of energy efficiency in
all sectors.
About Emerson Climate Technologies: Emerson Climate Technologies, a business of Emerson, is the
worlds leading provider of heating, air conditioning and refrigeration solutions for residential,
industrial and commercial applications. The group combines best-in-class technology with proven
engineering, design, distribution, educational and monitoring services to provide customized, integrated
climate-control solutions for customers worldwide. Emerson Climate Technologies innovative
solutions, which include industry-leading brands such as Copeland Scroll and White-Rodgers, improve
human comfort, safeguard food and protect the environment
About International Copper Promotion Council (India): The International Copper Promotion Council
(India), member of Copper Alliance. It is the Indian arm of the International Copper Association, the
leading not-for-profit organization for the promotion and defence of copper globally. ICPCI is driven by
the same objective as that of its parent organisation, which is to defend and grow markets for copper
based on its superior technical performance and its contribution to a higher quality of life worldwide.
ICPCI contributes mainly through its catalytic role, accelerating changes and transforming the long-term
markets for Copper in a sustainable way through its major initiatives like Building Construction and
Sustainable Electrical Energy. ICPCIs activities focus on helping end users to better understand and
appreciate the positive attributes of copper.
EPCG (export promotional capital goods scheme)-zero duty scheme allows import of capital goods for
production, pre production and post production.
Air-conditioning also has to comply with the standards set by environmental protection agency.
Setting of plants in tax incentive areas like greater Noida and Pune.
The following section focuses on an analysis of the competitive landscape of HVAC systems sector of
Bangladesh using the Porters 5-forces framework.
Many Indian companies are the primary supplier of Raw Materials and components. This vertical integration of
the foreign supplier with the Indian manufacturer renders a strategic competitive edge for the operations of airconditioner industry.
Strategic Planning not comprehensively carried out but done on an ad-hoc basis.
Tunnel vision of the entrepreneurs e.g. lack of clear Integrated Marketing Communication Strategies.
Financial Weaknesses arising from not being able to raise funds through issuing debt/equity securities in
capital (or OTC) markets.
Dependence upon Banks/other financial institutions for financing long-term investment projects.
7.1.3 Opportunities
7.1.4 Threats
Revisions in the regulatory duty/tariff with respect to import of raw materials or A/C components.
Fluctuations of Exchange Rates.
Political turbulence in the country.
Emergence new companies following similar business models (i.e. assembling domestically instead of
importing the finished products)
Emergence of conglomerates with massive financial investments.
Probability of fierce price-wars predicted as competition increases.
Rising inflation resulting in increased priced causing reduced demand.
The SWOT analysis is derived from the study of the external environment in which the business operates along
with the assessment of internal core competencies (strengths) and weaknesses observed. The following section
focuses upon the strategic implications of the SWOT analysis, and attempts to devise and suggest measures to
address the imminent strategic issues.
6. Conclusion
Like stated before, the aim of the study was to conduct an industry analysis and a competitor analysis for
the case industry. With the help of these and other analysis a marketing plan was created according to the
strategic steps. The qualitative method used proved to be the best one for the research in terms of
collecting valuable data. The theoretical data gathered earlier from a variety of sources provided the
basis for the empirical part. The research findings and results alongside with the more in depth
considerations on various subjects can be found in the text. Here we will summarize the main
conclusions and recommendations for the case industry.
In the end, it is important to consider the primary and secondary markets together to make an overall
assessment of the competition that the market is facing. Though the primary market with very limited
barriers to entry and evenly distributed market share appears to be competitive, the same cannot be said
about the secondary market. The competitor in the primary market has the possibility of becoming a
monopolist in the aftermarket due to the costumers getting tied in to availing services from the buyer.
The level of complexity of the external and internal variables determining the performance of Unitech in
the upcoming period of three years is relatively high. The company can strategically devise approaches
to thrive through the challenges, or remain stagnant to suffer the negative consequences.
The inception and initial journey of the company had been an inspiring one, and if the company leaders
can evolve as per the necessities, and grow organically as demanded by the imminent reality, it can be
expected to succeed in the upcoming periods.
9.Bibliography
1. Financial analysis
FINANCIAL MANAGEMENT 5th edition by I.M.Panday
History
http://www.popularmechanics.com/home/how-to/a7951/a-brief-history-of-air-conditioning-10720229/
3:51pm 5/11/2015
Major players
http://top-10-list.org/2014/08/13/top-10-best-air-conditioner-brands-in-the-world-2/2/
8/11/2015
5:12pm
Types of ac
http://www.cromaretail.com/air-conditioner-buying-guide.aspx
2-12-2015
3:24pm
Global scenario
http://www.persistencemarketresearch.com/article/air-conditioning-systems-market-analysis.asp
2:04pm
14/11/2015
16/11/2015
1:31 pm