Johnson Controls-Hitachi Air Conditioning banks on product portfolio to sustain growth

Franz Cerwinka, CEO and Gurmeet Singh, MD, Johnson Controls-Hitachi Air Conditioning at a press conference in Chennai on Wednesday Bijoy Ghosh

Opens skill development centre in Chennai

Chennai, May 24

Johnson Controls-Hitachi Air Conditioning India Ltd seeks to maintain a growth rate of 15-20 per cent in the coming years to achieve leadership position in the Indian AC market by 2020.

The joint venture company between the US-based Johnson Controls and Hitachi of Japan is presently occupying number three position in the room AC market after Voltas and LG with a market share of 12 per cent.

The growing room AC market, its wide product portfolio and ramp up of distribution network, supported by new service training centres are expected to help the company grow.

“India is now the fourth largest market for us after China, Japan and Taiwan. It presently contributes about 12 per cent to our revenues. Our intent is to grow 15-20 per cent annually in this market,” Franz Cerwinka, Chief Executive Officer, Johnson Controls-Hitachi Air Conditioning, said after announcing the opening of its training centre in Chennai.

The company, which has priced its products at a premium, said it was selling higher number of energy-efficient products than competition. “We are outpacing the industry growth. Five star-rated and inverter ACs accounted for about 50 per cent of our sales, while such products account for 22-23 per in overall industry sales,” said Gurmeet Singh, Managing Director.

Skill development centres

The new skill development centre in Chennai, its second such facility after New Delhi, is part of its plan to achieve top position. “While we make highest efficiency products, we also need to ensure that our products are serviced in a professional manner. So we think that trained staff is key to our growth and brand positioning,” said Cerwinka.

Chennai is expected to see higher sale of room ACs in the South.

The 8,000-sq-ft Chennai centre, which houses seven different product labs and two class rooms, aims to impart training to 3,000 people, which will include its own technicians and dealer staff.

It plans to open one such centre each in Mumbai and Kolkata before the end of this year. Each centre entails an investment of ₹3-3.5 crore, while operating expenditure is estimated at ₹15-20 lakh a month.

“With four skill development centres, we expect to train about 30,000-35,000 people in the next three years,” said Singh.

Published on May 24, 2017



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