Record Growth for Air-Conditioner Makers This Summer

This summer has been a scorcher, and the demand for air conditioners has skyrocketed! Many air-conditioner manufacturers are celebrating impressive double-digit growth in revenue, and some have even seen profits more than double for the April-June quarter.

Top Players in the Game

Leading companies including Voltas, Blue Star, Whirlpool of India, Johnson Controls-Hitachi, and Havells—which owns the Lloyds brand—have reported remarkable growth, driven by record-breaking sales during this peak quarter.

Voltas Shining Bright

Among them, Voltas, a powerhouse in the room air-conditioner segment, has made headlines with its phenomenal performance. The Tata group company reported a staggering jump in consolidated net profit to ₹335 crore, which is more than double compared to last year. Furthermore, their revenue from operations soared by an impressive 46.46%, reaching ₹4,921 crore.

Highlighting their success, Voltas happily noted that they achieved the “milestone” of selling one million AC units in just the first quarter of FY25, pushing their total income beyond the ₹5,000 crore mark during the April-June period.

Specifically, the revenue from their “unitary cooling products,” which falls under the room AC segment, surged by 51.24%, hitting ₹3,802.17 crore. The overall volume in their AC segment saw a remarkable growth of 67% during this quarter.

Voltas remarked, “Our unitary cooling products business continues to outperform the market and maintain its growth momentum,” proudly sharing their market leadership status with a share of 21.2% as of June 2024.

Blue Star’s Impressive Rise

Another big player, Blue Star, reported a consolidated net profit of ₹168.76 crore, also more than double last year’s figures. Their revenue from operations jumped 28.72% to ₹2,865.37 crore in the June quarter.

Their revenue from the unitary products business, which includes room ACs, grew 44.31% to ₹1,729.52 crore. The company attributed their growth to the extreme heat and soaring summer temperatures, which led to unprecedented demand in the air-conditioner market.

Blue Star noted, “Demand exceeded our inventory plans, and while we ramped up production to meet needs, we missed some chances to cater to the entire demand.” It’s clear the heat certainly had a silver lining for their business!

Havells and Whirlpool Join the Success List

Havells, managing the Lloyds brand, also had a stellar quarter, reporting a profit of ₹67.39 crore compared to a loss of ₹61.48 crore in the same period last year. Their revenue from the Lloyds business was up a striking 47.43% to ₹1,924 crore.

The management team at Havells acknowledged the substantial contribution of their AC business, stating, “The air-conditioner segment has seen many first-time buyers, which could signify an inflection point for the under-penetrated AC industry.”

Meanwhile, Whirlpool of India saw its consolidated profit soar by 89.4% to ₹145.3 crore, with revenue from operations climbing 22.5% to ₹2,496.9 crore. This growth was spurred by a rising industry demand for refrigerators and air-conditioners.

Johnson Controls-Hitachi’s Surge

Johnson Controls-Hitachi Air Conditioning India, known for their residential ACs under the Hitachi brand, also reported a remarkable over 76% increase in revenue, reaching ₹982.29 crore for the June quarter.

A Bright Future Ahead

As we look forward, Sunil Vachani, President of the Consumer Electronics and Appliances Manufacturers Association (CEAMA), has high hopes, estimating annual sales volumes of room ACs to reach around 14 million.