This year, due to the scorching heat and increasing effects of global warming, the demand for cooling appliances is increasing rapidly. Keeping this in view, Indian air conditioning brands are preparing to go to Europe. However, they will have to compete with Chinese and South Korean companies, which currently dominate the European market and are said to have 15 to 18 percent lower production costs than Indian manufacturers. Indian companies will be able to start sales only from next year i.e. 2027.
strict rules
According to the Economic Times report, Kamal Nandi, Head of Appliances Business, Godrej Enterprises Group, said, we were studying opportunities in Europe since last year, this summer has opened our eyes. Immediate sales are not possible due to strict certification requirements, but we are definitely planning to launch by next summer.
Piyush Goyal-Ashwini Vaishnav had talked about increasing exports
In Europe, sales of cooling equipment and inquiries related to them have increased two to three times. government since last year AC The category is being considered as a big opportunity for manufacturing just like smartphones. Commerce and Industry Minister Piyush Goyal and Electronics and Information Technology Minister Ashwini Vaishnav had asked AC manufacturing companies to increase exports.
AC is the only white goods category which comes under the scope of Production Linked Incentive Scheme. Therefore, the government wants export revenue from this category. Noida-based company Havells, after first focusing on the US market, is now planning to start exporting ACs and fans to Europe through distributors.
Contract manufacturing companies like Amber Enterprises, which supplies to companies like LG, Daikin, Samsung and Blue Star, are also looking at export opportunities. LG, Daikin, Haier and other global brands are increasing their AC production capacity in India with export-oriented units. Industry officials say that with this they will be able to send some part of their production directly to Europe.
Challenges facing companies
Godrej’s internal assessment has revealed that heat pump ACs, which provide both heating and cooling, currently account for about 80 per cent of residential AC sales in Europe. Similar models are sold in markets such as Jammu and Kashmir and Delhi-NCR, although the companies said some products will require design modifications to suit European homes, where professional installation costs are much higher. Additionally, many European buildings are not built for traditional AC units. There are strict rules on heritage buildings under which outdoor split units cannot be installed.
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