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HVAC INDUSTRY IN INDIA

PREPARED BY:-• AKASH GANGWAR• AMAN YADAV• HITESH MALVIYA• ABHIJEET ROY

What do you mean by HVAC industry?

The HVAC industry is a worldwide enterprise with roles including operation and maintenance, system design and construction, equipment manufacturing and sales, and in education and research.

Standard and regulating organizations such as HARDI,ASHRAE, SMACNA, ACCA, Uniform Mechanical Code, International Mechanical Code and AMCA have been established to support the industry and encourage high standard and achievements.

In India Currently India’s HVAC industry is Rs. 25000 crore and the Refrigeration industry is worth Rs. 8000 crore The Indian Society of heating, refrigeration and Air Conditioning Engineers(ISHRAE) was established

to promote the HVAC industry in India. ISHRAE is an associate of ASHRAE started in Delhi in 1981 Indian Society of Heating, Refrigerating and Air Conditioning Engineers (Ishrae) estimates that the

HVAC products market in India is valued around Rs 15,000 crore, having grown from Rs 10,000 crore in 2010

What are the emerging trends in HVAC industry?

Across the HVAC industry, energy savings and precision system control are the main reasons to use adjustable frequency drives in HVAC systems today.

Estimated future market growth: A developing country like India is known for intellectual skill set and this is attracting all

investments from each and every corner of the globe. The residential sector is poised for a quantum jump. Infrastructure and hospitality industry, IT and ITES sectors growth is appearing positive Recession mode is on the receding phase and with light at the end of the tunnel and a stable

government, the country will attract lot of investments.

India’s largest air conditioning company a) Foundation year: 1954b) Headquarters: Voltas House, Mumbai, Indiac) Revenue: ₹53.66 billion (US$800 million) (2014)d) Number of employees: 5,287 (2015)e) Parent: Tata Group

Manufacturing Plants:- Thane (Maharashtra), Dadra (Union Territory) and Pantnagar (Uttaranchal)Zonal Headquarters:- Delhi, Mumbai, Chennai and KolkataInternational Head Office:- Dubai Investment parkThe Company's strengths lies in• Management and execution of air conditioning, water treatment and refrigeration.• Sourcing, installation and servicing of diverse technology-based systems

)

MAJOR PRODUCTS & AWARDS Major Projects:Airports: Bahrain International Airport; Rajeev Gandhi International airport HyderabadTowers: Burj Khalifa, Dubai, UAECommercial: F1 Race Track, Abu Dhabi; Neptune mall MumbaiHotels: SAARC complex, Thimphu, Bhutan; Taj hotel UdaipurIT Offices: Millennium Park Kolkata; Siemens Bangalore Hospitals: D. Y. Patil & Tata memorial Hospital Mumbai; Fortis Delhi Awards:• Dun & Bradstreet Corporate Awards – Consumer Durables &

Appliances Sector ( 2014-2015)• Sustainable Project of the Year, GCC for Al Bustan Utility complex,

Riyadh, KSA (2013-2014)• MEP Company of the year, GCC (2010-2011)• Best corporate Brands 2016 Award of Economic Times (India)

VAPOUR PRODUCTS

Inverter driven

ductable split units

Variable refrigerant flow system

Chillers and

condensing units

Vapour absorpti

on machine

s

Packaged &

Ductables split units

PERFORMANCE

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

0

1000

2000

3000

4000

5000

6000

3264

43744782

5211 52085567

5280 5166

Sales and Services

Year

Rup

ees

in C

r

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

0

100

200

300

400

500

600

276

346

507 484

370

268318

467

Operating Profit

YearR

upee

s in

Cr

"To deliver a world-class customer experience", has been the core philosophy of Blue Star.Foundation year : 1943Headquarters : Gurgaon Net Profit : ₹152 Cr Number of employees : 2500Blue Star Factories: Dadra Himachal Wada Ahmedabad

Manufacturing philosophy : Blue Star starts with the birth of an idea, a need in the market, which is harnessed using manufacturing setup.Major Projects: DLF Mall of India, Noida Apollo Hospitals Enterprise Limited, Navi Mumbai Gautam Buddha University, Noida HCL technologies, Chennai CISCO, Bengaluru

PERFORMANCE

2012-13 2013-14 2014-15 2015-160500

1000150020002500300035004000

2767.06 2770.53080.9

3770

Total Income

Year2012-

132013-

142014-

152015-

16

0

50

100

150

200

250

51.7375.9

152.53

216

Operating profit (Cr.)

"World’s No. 1 HVAC company”

Foundation year : 1924 (Japan)Coming Year to India : 2000Headquarters : DLF Cyber city, Gurgaon Turn over : ₹2700 Cr Only company in World which manufacturers air conditioners, compressor and refrigerant. Daikin received an award from the prime minister of Japan ,for the R32 inverter ACs. Refrigerant R32 ,invented by DAIKIN helps in saving of energy as well as Ozone depleting potential . DAIKIN is also inventor of VARIABLE REFRIGENT VOLUME. Only daikin hitachi and o general have provided copper condenser coil rest all have aluminum coil

having lesser life in long run

PERFORMANCE

FY09 FY10 FY11 FY12 FY13 FY14 FY150

2000

4000

6000

8000

10000

12000

14000

Production (Cr.)

Year2009-10 2010-11 2011-12 2012-130

200400600800

100012001400160018002000

Turnover (Cr.)

Year

Delivering most energy efficient air condition is the main target of company.

Foundation year: Hitachi Home and Life Solutions (India) Limited (‘the Company’) was incorporated in December 1984 as “Acquest Air conditioning Systems Private Limit”.

Manufacturing plant in India:The Company's manufacturing facility for air conditioners is set up at Kadi, North Gujarat. The Company performs its marketing activities through 20 branches and 40 service centres spread across India. The Company has also opened 29 Hitachi Home showrooms across India.Products: air conditioners, refrigerators, washing machines, chillers and variable refrigerant flow (VRF) systems

Special features

anti-bacterial Koukin filter auto climate technology In Window Air Conditioners uses revolutionary Twin Motor Technology Hitachi ac incorporates extremely intelligent features such as inverter technology, Ace cut out, follow me,

auto clean technology, silent operation, etc.

COMPANY POLICIES& SOCIAL RESPONSIBILTY: Recruiting Fresh Talent Creating Competent Employees & Future Leaders Enhancing Competency and Skills of Employee Meeting the Challenges of Employment Safety and Health - Performance and Initiatives Internal Control and Systems

Financial Position

2009-10 2010-11 2011-12 2012-13 2013-14 2014-150

20

40

60

80

100

120

140

160

65.27376.868 79.896

93.16

110.547

157.996Revenue(cr.)

year

CHALLENGES IN HVAC INDUSTRIES

Projects are not executed properly with the first time right concept, as all have forgotten to focus on the life cycle cost.

The performance standard is revised in every 2 years; by the time the industry sets its product line-up for 1 year, next year, they have to change again.

Proper guidelines or standards for India never exists. With more and more multinational companies coming to India, the expectations are high with

cutting edge technology equipment's, state of the art execution followed by a great piece of commissioning, operation and maintenance.

Certification of engineers, technicians and operators is the need of the hour and such requirement is not present as of now.

Air-conditioning is made the reason for spread of fire and indoor air quality issues. Unfortunately there is no single refrigerant which satisfies both the conditions of ODP and

GWP.

SOLUTION

Solution to the challenges is to focus on the Life Cycle cost (which is installed cost, operation and maintenance cost) instead of the First cost.

Energy efficient products are to be sourced even though it may be marginally expensive to start with, good study on the life cycle cost and the Return on investment will save the country from current energy crisis

Projects need to be executed properly with a good planning, deputing right resources and dedicating time and importance as required.

The quality and specifications shall not remain on paper and has to be displayed during execution. Companies need to have larger budgets allocated for Research and Training activities. Standards, codes, guidelines totally tropicalized for the Indian scenario are to be available in all the

possible areas. Integrated approach with all the stake holders right from owners, developers, architects, consultants,

project managers, manufacturers, contractors, facility managers is required to achieve the various objectives.

Comparison on EER

What is EER?An EER is the ratio of the cooling capacity of an air conditioner(calculated in BTU/hour) to the total electrical inputs in watts.

Daikin Bluestar Voltas LG3.2

3.25

3.3

3.35

3.4

3.45

3.5

3.55

Actual EER

Can India emerge as a major manufacturing hub for HVAC industry?

Indian manufacturing sector can touch $ 1 trillion by 2025, the future of the sector looks promising. India can emerge as a manufacturing hub for HVAC industry given factors like growth of construction projects, low cost operations, demand and energy efficient solutions that are at their disposal