After taking a hit in business this year due to the coronavirus pandemic, air-conditioner maker Johnson Controls-Hitachi Air Conditioning India expects to resume its growth journey from 2021 onwards when situation normalises.
The company reported over 70% drop in sales in the June quarter. However, it is fully committed to the Indian market and confident over its long-term prospects and to grow ahead of the industry curve when the growth takes place.
Besides, the company is also endeavouring to promote and push Made in India’ ACs and aims to reduce its component imports to almost to half and increase exports three folds in the next three years. It expects to resume its growth journey from 2021 after a blip in the business in 2020 due to disruptions by COVID-19 and subsequent lockdown.
Johnson Controls-Hitachi Air Conditioning India, which operates in the residential air conditioners, commercial air conditioners and home appliances segment, reported a revenue of Rs 2,197.37 crore in FY2019-20.
The company is working with the Indian government to reduce the import of critical components and is also encouraging its overseas vendors to set up factories in India to support an Aatmanirbhar Bharat.
It wants to reduce its imports by half and increase exports three times. It has started working with component manufacturers in India.
It is working on indigenisation of products right from PCBs to compressors. It has formed associations with MSMEs and SMEs here to promote domestic manufacturing and indigenisation of raw materials and components.
There are multiple small items, which are being imported from neighbouring markets as China and South East Asia.
Presently near 5 per cent of its revenue comes from exports, which is mainly to neighbouring SAARC, South Asia and some Middle East markets.
It is looking at the Middle East and African markets for export and is poised to enter the African market. The stringent energy-efficiency norms of India and BEE star ratings are ensuring that India is producing the highest level of products.
Johnson Controls-Hitachi Air Conditioning India is a 60:40 JV between US-based Johnson Controls and Japanese company Hitachi.