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Air Conditioner Industry

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Air Conditioner Industry
Airconditioner Industry in India — Presentation Transcript * 1. AIRCONDITIONER INDUSTRY ANALYSIS Subject: Business StrategyIndustry: Consumer Durable(Air Conditioner) Company: Bluestar Haresh Ashar(01) Prashant Arekar(19) Narayanan Palani(09) Devina Deshmukh(02) * 2. INDUSTRY ANALYSIS CONSUMER DURABLES • Consumer durables Sector can be classified as follows: – Consumer Electronics includes VCD/DVD, home theatre, music players, colour television, cameras, camcorders, portable audio, etc – White Goods: include dishwashers, Air Conditioners, water heaters, washing machines, refrigerators, vacuum cleaners, kitchen appliances, non-kitchen appliances, microwaves, built-in- appliances, tumble dryer, personal care products, etc. – Molded Luggage includes plastics – Clocks & Watches * 3. AIR CONDITIONER INDUSTRY * 4. INDUSTRY-In 2008-09, the estimated total market size for air-conditioning in India was around Rs. 10,250crores. Of this, the market for central air-conditioning, including central plants, packaged/ductedsystems and VRF systems was about Rs. 5750 crores, while the market for room air conditionerscomprised the balance Rs. 4500 crores.-The commercial air-conditioning segment catering to corporate and commercial customersamounted to around Rs. 8000 crores.-The market for commercial refrigeration equipment and systems was estimated at around Rs.2000 crores. Rs. 2,000 Crores Rs. 5,750 Central and Crores Packaged Air- Rs. 4,500 Crores conditioning Systems * * 5. PORTER’S FIVE FORCES/1 Threat of new entrants(LOW) Capital Requirements The initial investment that goes into setting a plant is considerably high as there needs to be sufficient investment in providing quality components and also in R&D to meet the changing technology. Thus there is a low threat of entry into this sector. Economies of Scale Manufacturers in HVAC industry need to build economies of scale due to high fixed costs and meet the demands. Due to this there is a low threat

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