Latest news with #ACs
Time of India
3 days ago
- Business
- Time of India
Govt sets a cool exports target for AC makers
Kolkata: The government has asked air-conditioner manufacturers to push exports on a much larger scale because the boost to the industry via the production linked incentive (PLI) scheme for white goods such as AC and LED lights has not reflected in shipments to foreign shores. Minister of commerce and industry Piyush Goyal discussed this in a meeting with senior industry executives earlier this month, people aware of the development said. The government is of the view that the category has huge potential to grow India's electronics export value after smartphones. It wants India to export 15-16 million units in the next four years and compete with China and Thailand which have emerged as big export hubs, industry executives said. At present, India exports around 2 million units. In contrast, China exported 85 million units of ACs in 2024, worth $26 billion, while Thailand exported 19 million units and generated over $7 billion in revenue, as per Chinese AC industry body and media reports. As per commerce ministry data, India exported ACs worth ₹3,683 crore ($435 million) in 2024-25, which grew 32% year-on-year (yoy). In contrast, India's smartphone exports in 2024-25 rose 55% yoy to $24.1 billion. Companies who have applied for AC PLI include LG Electronics , Voltas , Daikin, Blue Star , Amber, Johnson Hitachi, Panasonic , Haier, Midea and Havells . The industry has been asked to prepare a list of support initiatives it might require to start exports other than the existing PLI scheme. "The government wants manufacturers, especially PLI beneficiaries, to export ACs which has not started in a big way as it was difficult to compete with the Chinese in pricing and scale," said Pradeep Bakshi, managing director at Voltas, the Tata-owned AC manufacturer. "But there is a renewed push from the government who wants to know from the manufacturers the disabilities in exports," he said. The government has also asked the industry to prepare a report on the disabilities in AC exports to be submitted in June. "We have been discussing the project with the government," said Jasbir Singh, chief executive officer of Amber Enterprises , India's largest AC contract manufacturer. "After China, Thailand too has become a big exporter of ACs in the last five years," said Singh. When the government announced the PLI scheme for white goods in 2021, it had estimated AC and LED light exports worth ₹64,400 crore by 2026. While some companies are exporting LED lights, exports of ACs are still relatively small with companies like Blue Star, Daikin, Havells and Voltas exporting in small quantities, some to the US. India Cellular and Electronics Association (ICEA) chairman Pankaj Mohindroo said after mobile phones, AC is a category with huge exports potential. "And like mobile phones, PLI has a significant impact on the evolution of the local manufacturing ecosystem," he said. ICEA is setting up an AC export task force with the Refrigeration and Air-conditioning Manufacturers Association to draw a roadmap and monitor its execution.
Time of India
3 days ago
- Business
- Time of India
Govt sets a cool exports target for AC makers
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Kolkata: The government has asked air-conditioner manufacturers to push exports on a much larger scale because the boost to the industry via the production linked incentive (PLI) scheme for white goods such as AC and LED lights has not reflected in shipments to foreign of commerce and industry Piyush Goyal discussed this in a meeting with senior industry executives earlier this month, people aware of the development government is of the view that the category has huge potential to grow India's electronics export value after wants India to export 15-16 million units in the next four years and compete with China and Thailand which have emerged as big export hubs, industry executives said. At present, India exports around 2 million units. In contrast, China exported 85 million units of ACs in 2024, worth $26 billion, while Thailand exported 19 million units and generated over $7 billion in revenue, as per Chinese AC industry body and media per commerce ministry data, India exported ACs worth ₹3,683 crore ($435 million) in 2024-25, which grew 32% year-on-year (yoy). In contrast, India's smartphone exports in 2024-25 rose 55% yoy to $24.1 who have applied for AC PLI include LG Electronics Voltas , Daikin, Blue Star , Amber, Johnson Hitachi, Panasonic , Haier, Midea and Havells The industry has been asked to prepare a list of support initiatives it might require to start exports other than the existing PLI scheme."The government wants manufacturers, especially PLI beneficiaries, to export ACs which has not started in a big way as it was difficult to compete with the Chinese in pricing and scale," said Pradeep Bakshi, managing director at Voltas, the Tata-owned AC manufacturer. "But there is a renewed push from the government who wants to know from the manufacturers the disabilities in exports," he government has also asked the industry to prepare a report on the disabilities in AC exports to be submitted in June."We have been discussing the project with the government," said Jasbir Singh, chief executive officer of Amber Enterprises , India's largest AC contract manufacturer."After China, Thailand too has become a big exporter of ACs in the last five years," said the government announced the PLI scheme for white goods in 2021, it had estimated AC and LED light exports worth ₹64,400 crore by 2026. While some companies are exporting LED lights, exports of ACs are still relatively small with companies like Blue Star, Daikin, Havells and Voltas exporting in small quantities, some to the Cellular and Electronics Association (ICEA) chairman Pankaj Mohindroo said after mobile phones, AC is a category with huge exports potential. "And like mobile phones, PLI has a significant impact on the evolution of the local manufacturing ecosystem," he is setting up an AC export task force with the Refrigeration and Air-conditioning Manufacturers Association to draw a roadmap and monitor its execution.
Mint
12-05-2025
- Business
- Mint
Voltas vs Blue Star: Which AC stock looks stronger after Q4 results?
Voltas and Blue Star, the country's leading air conditioning and cooling solutions companies, reported their March quarter (Q4FY25) results last week, with earnings broadly in line with analyst expectations. However, the Street appeared disappointed with the outlook, as a delayed summer and weaker-than-expected April sales cast a shadow over the companies' peak season performance in Q1FY26. Industry experts stated that demand for cooling products such as air conditioners (ACs) is expected to be weak in the ongoing quarter due to a mild start to summer, particularly in the South — a key region that accounts for 30% of industry sales. The management of Blue Star also highlighted a weak start to the summer, with sales in April growing only 5% year-on-year (YoY), compared to initial expectations of 20–25%. Incorporating the potential impact of weak numbers, brokerages have cut their target prices on both stocks. JM Financial cut its target price for Blue Star share price to ₹ 1,900 from ₹ 2,015, while maintaining its 'Buy' rating. Jefferies also revised Blue Star's price target to ₹ 1,900 from ₹ 2,230, retaining a 'Hold' rating. Likewise, Centrum Broking revised its target price on the stock to ₹ 1,725 per share, maintaining an 'Add' rating. Voltas share price also saw a target price cut by JM Financial, which lowered its estimate to ₹ 1,405 from ₹ 1,470, while retaining a 'Buy' rating. Centrum Broking trimmed its target for Voltas share price to ₹ 1,390 from ₹ 1,430, keeping its 'Add' rating, while Jefferies revised its target to ₹ 1,790 from ₹ 1,990, maintaining a 'Buy' stance. Nomura also lowered its target price for Voltas to ₹ 1,290 from ₹ 1,404. Voltas Q4FY25 sales grew 13% YoY to ₹ 4,770 crore, broadly in line with Centrum Broking's estimates. Its Unitary Cooling Products (UCP) segment sales rose 17% YoY to ₹ 3,460 crore, slightly below the brokerage's expectations, driven by RACs, air coolers, and commercial ACs. The EMPS (Electro-Mechanical Projects and Services) segment saw a 4% YoY increase in sales to ₹ 1,140 crore. Gross margin expanded by 160 basis points YoY to 21.4%, while EBITDA margin rose by 250 basis points to 7% on a low base. The UCP margin improved 80 basis points to 10%, whereas the EMPS segment reported an EBIT loss of ₹ 1.7 crore due to a ₹ 40 crore provision for expected credit loss related to projects in GCC countries. Voltas' net profit jumped 107% YoY to ₹ 240 crore, driven by higher other income. Although the summer season started on a weak note (with April sales impacted), the company remains optimistic about a rebound in May–June. It has not taken any price hikes so far but may consider them if necessary. Blue Star's revenue for Q4FY25 grew 21% YoY to ₹ 4,020 crore, in line with Centrum Broking's expectations. EMPS revenue jumped 31% YoY to ₹ 1,970 crore, driven by strong execution and exceeding brokerage estimates. Unitary Products segment sales grew 15% YoY to ₹ 1,960 crore, falling short of Centrum's forecast of 23% growth. Gross margin contracted by 60 basis points YoY to 23.1%, while EBITDA margin slipped 30 basis points to 7%, partly due to a less favorable product mix with a lower share of unitary products. Net profit rose 21% YoY to ₹ 190 crore. The brokerage noted that unseasonal rains led to a 15–20% decline in the RAC industry in April. Blue Star managed to grow both primary and secondary sales by 5%, though short of its 30% target. With hopes pinned on stronger May–June demand, the RAC industry may see 10–15% growth this summer versus the earlier projection of 20–25%. Blue Star aims to maintain margins of 8.5% for unitary products and 7.5% for EMPS, although further expansion seems unlikely due to intense market competition. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
Hindustan Times
07-05-2025
- General
- Hindustan Times
Railway Ministry directs all zones to ensure prime condition of engine ACs
New Delhi, The Railway Ministry has directed all its 17 zones to launch a month-long drive to ensure the air conditioning systems in train engines are in prime condition to beat the summer heat. Railway Ministry directs all zones to ensure prime condition of engine ACs In a written communication sent to all zones, the ministry said that improving the working conditions of running staff is a thrust area for the Indian Railways to ensure safety in train operations. Asserting that effective Cab ACs are essential in the summer, it advised the zones to make sure during the month-long drive that "no locomotive should turn out from homing sheds/base sheds with any defective Cab AC." The May 6 letter added that Cab AC abnormality reports are being filled up by loco pilots/assistant loco pilots in the Crew Management System or log book and are also relayed to Traction Loco Controller for entry in the System for Locomotive Asset Management. It asked the zones to sensitise the departments concerned about paying timely attention to any defect in Cab ACs and "chalk out an action plan for early attention of locos with non-working Cab ACs as well as expedient fitment in remaining locos". "Officers and supervisors are advised to footplate in WAG 9 locomotives to understand and observe the effectiveness of Cab AC," the ministry said. It also added that the zonal railways should cover all electric and diesel locomotives fitted with Cab AC in this drive and submit a compliance report in a month. The All India Loco Running Staff Association, which held a day-long across the vast expanse of the rail network on April 30 demanding AC in all locomotives, has appreciated the ministry's move. "Your timely initiative in directing General Managers through your letter dated 06.05.2025 to improve the locomotive cabs is highly appreciated by the loco running staff," KC James, the secretary general of the association, said in a letter to the ministry. "We also expect that the Locomotive Cabins will be provided with AC in the near future to reduce the stress level of the crew and thereby improve the efficiency and safety of Railways," James added. This article was generated from an automated news agency feed without modifications to text.
Time of India
04-05-2025
- Business
- Time of India
Appliance Makers Set to Dial In Next Electronics Boom
The smartphone industry may be the star of India's manufacturing incentive programme, but consumer electronics and home appliance manufacturers are now getting in on the act. #Pahalgam Terrorist Attack Code of war: India and Pakistan take their battle to the (web)front Forex reserves show a pauperised Pakistan, a prospering India Pakistan conducts training launch of surface-to surface ballistic missile Brands and contract manufacturers such as LG, Samsung, Haier, Havells, Godrej Appliances, Dixon Technologies, Amber Enterprises, PG Electroplast and Epack Durable have lined up record investments of over ₹13,000 crore to be executed over the next one-two years, according to executives. That's more than twice that of FY24 and FY25 put together. This excludes the investments most of them will make under the recently announced incentive scheme for electronic components, plans for which are still being finalised by the companies, the executives said. Chief executives said proposed investments will create capacities for both domestic and export markets to prepare for opportunities under the emerging tariff regime and backward integration into components. This is despite demand having been bleak for almost 10 quarters now, except for premium products. Amber Enterprises CEO Jasbir Singh said components such as printed circuit boards are asset-heavy business and without government incentives it did not make business sense to make such high investments until now. LG Electronics is investing ₹5,001 crore in a new plant in Sri City in Andhra Pradesh. The Sri City plant will be LG Electronics' third unit in the country, having set up its last factory about two decades ago. This one will produce home appliances including ACs. Samsung meanwhile will be spending over ₹1,000 crore to expand capacities at its plant in Tamil Nadu. Haier is making a fresh investment of ₹800 crore in India to expand its AC production capacity with a new plant and it aims to start making PCBs. It's already invested about ₹1,600 crore in India. In the last fiscal year, Haier spent ₹200 crore, while the South Korean duo made no major manufacturing investments. Godrej Appliances has started trials of an AC compressor developed in-house and plans to set up a new plant to make it. Havells India will invest ₹2,000 crore in the next two years on a new R&D centre and a refrigerator factory among other projects, the company told analysts on an earnings call. Its capital expenditure in the last fiscal year was ₹800 crore. Capex over the next five years will far exceed what it's spent in the last 20 years, Havells managing director Anil Rai Gupta told ET. He said the company is also evaluating investment in components. The Make in India initiative, the Phased Manufacturing Programme and the production-linked incentive (PLI) scheme helped transform mobile phone manufacturing in the country. India is now the world's second-biggest maker of these devices with more than 300 factories compared with two in 2014. The value of mobile phones manufactured has risen to ₹4.22 lakh crore in FY24 from ₹18,900 crore in FY14, as per the latest government data. The mobile phone PLI scheme alone attracted cumulative investment of ₹10,905 crore till February 2025. In contrast, the investment in manufacturing of other electronic products such as televisions, home appliances, laptops and electronic components has lagged. The industry is said to be lobbying for a PLI scheme for refrigerators. Contract manufacturer Amber plans to invest ₹2,000 in the next two fiscals on two PCB plants and other projects. Industry executives said Dixon aims to invest ₹900-1,000 crore in FY25. PG Electroplast and Epack Durables want to more than double the investments they made last year. Company executives did not comment. The current high capex cycle across the electronics industry is aimed at building a component ecosystem and preparing for opportunities when consumption improves, said Vikas Gupta, MD—operations, PG Electroplast.
