Sales of ACs Increased in India

The Air Conditioning Companies are yet to fulfill its full potential. Despite the fact that some prominent companies such as Voltas, LG, Daikin, Hitachi, Blue Star, and Lloyd have been selling air conditioners for five to seven decades, they have yet to reap the benefits of better margins from this soon-to-be-booming category.

This year, on the other hand, could be a good one. According to a survey by international financial services giant BNP Paribas, demand for air conditioners is projected to rise due to blistering weather in numerous parts of India. People have been racing to buy air conditioners to keep cool as the thermometer has crossed 45 degrees Celsius in various areas and reached 49 degrees in Delhi.

“We estimate the Indian AC industry market size at ₹180 billion (₹18,000 crore) with a potential CAGR [compound annual growth rate] of 15% over FY21-25,” the report said.

According to BNP Paribas, 8% of Indian houses will have air conditioning in 2020, with 7 million units sold in that year. When compared to the fact that four out of ten — or 42 percent — of all households in the globe have air conditioning, this figure is extremely low.