The heating, ventilation and air-conditioning systems industry is expected to witness a 30-35% growth in FY25, according to Jasbir Singh, chairman and CEO of Amber Enterprises India Ltd. In an interview with NDTV Profit, Singh said growth in the sector could also reach around 40% if the fourth quarter of the current financial year saw robust demand.
“We have seen growth in July also; this year we expect industry growth to be in the range of 30 to 35%, and it could also surprise us with a 40% growth if Q4 goes well,” Singh said.
Singh told NDTV Profit that though the HVAC industry didn’t do well last year, decent performance in the current fiscal had helped maintain the compound annual growth rate. He projected the air-conditioning industry could double in size in the next five years if the CAGR was maintained.
“Last year was not a good season for the air-conditioning industry, but with a good jump this year, the CAGR of the industry has been maintained. If CAGR is maintained, the industry will almost double in size in the next 5 years,” Singh said.
Commenting on the company’s Q1 results, Singh said in the quarter ended June, the room AC and electronics divisions had been major contributors to revenue. He added the company had multiple levers of growth.
“We have created three divisions- one is the consumer durables division, which comprises room AC (RAC) and RAC components and non-room AC components, then we have an electronics division comprising the PCB assembly businesses. And the third division is the mobility business, where we do air-conditioning for trains, metro cars and buses etc.,” Singh said.
“All three divisions contributed in Q1, but large contributions came from the room AC and electronics division. I expect similar growth moving forward. All three divisions are fairly diversified and we are no longer relying on one sector. As far as the console level balance sheet is concerned, we now have multiple levers of growth and all are functioning well,” Singh added.
Earlier in March, Amber Enterprises India signed a joint venture agreement with Resojet Pvt Ltd to manufacture fully automatic washing machines. Singh said the JV was a good forward integration for the company as it was already manufacturing washing machine components.
“We were already supplying washing machine components such as tub assemblies, outer case as well as PCB board, hence this is good forward integration for us to get into the full product category. The market is moving toward front-load and top-load rather than semi-automatic and that is why we picked these two categories to start with,” Singh said.
