Report-carrier Aircon Final

INTRODUCTIONFew years back liberalization was not there in the Indian market. But slowly and gradually scene changes and liberalization paves its way in the Indian market. Advent of liberalization policy has changed the whole scenario. Liberalization policy

Leads to entry of MNCs

Leads to technological Advancement

Leads to Fierce Competition

Which inturn Makes the Customer a King

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Therefore, today's winning companies are those who succeed best in satisfying target customers. In other words winning companies are those who provide value for money. They are market focused and customer driven, rather than solely product focused or customer driven. The most wrenching change that the business scenario is experiencing involves acquiring a strategy to cope with liberalization. The main focus of this report is to study consumer buying behaviour and the customer satisfaction level with the product performance. Industry Scenario Rising temperature and unexpected climate has lead to the invention of Airconditioner system. Thus this leads to birth of new industry known as AC Industry. A.C. INDUSTRY The air-conditioning industry has a total market size of approx. Rs. 1500 crores. It can be classified into windows, split, packaged and Chiller Airconditioners. The split is divided into ducted and non-ducted. The window and split A.C. have a current market of Rs. 900 crores and the central including Chillers command a market of Rs. 600 crore. Air-Conditioner in India Product Segment Window and Split Central and Chiller Size (Rs. in crores) 900 (Approx.) 600 (Approx.)

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The domestic Window Air-conditioner has been growing at the fastest rate but this has been accompanied by increasing competition leading to low profit margins. Profits in this segment are driven by volume growth. Against most developing countries, Indian market is Window A.C. oriented - both commercially as well as household. Considering the low penetration of A.C.s, the segment is likely to grow, at least for the next 5 to 10 years. An important player in the Window A.C. segment is the unorganised sector. Current market share of organised and unorganised players are 60% and 40% respectively. The market for air-conditioners was earlier dominated by the unorganised sector as a result of high excise duty. This sector accounted for around 55 to 60% of the market share only 2-3 years ago. The proportion used to be 30:70 during 91-92. Then lowering of excise duties from 110% to 40% favoured the organised sector by narrowing the price gap e.g., a 1.5 ton air-conditioner which costs Rs.45,000/- in 91-92, now costs below Rs. 30,000/- in the organised sector against Rs. 24,000/in the unorganised sector. This has led to the organised sector entering into the unorganised sector's share and also due to brand awareness on part of the customers.

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Industry Segments Volume (Units) Value (Rs. in

crore s) Window Air-conditioner Split Air-conditioner Package Air-conditioner Total 3,00,000 75,000 30,000 4,05,000 900 300 290 1490

The Government Policy Regarding A.C.s The attitude of the government to the industry in general has been influenced by the perception of white good as a luxury item. Only after 1993 did the government liberalise its attitude towards white goods. Till 1994, excise duty on ACs varied from Rs.7,000/- for 0.5 tonne ACs to Rs. 9,000 for 1.5 tonne models. In the 1994-95 to 1996-97 budgets, the govt. gave considerable relief to the Air-conditioning sector. The excise duty was reduced from 80% to 60% in 1994-95 and from 60% to 30% in the following years. In the Exim policy, ACs continued to be in the negative list which means they cannot be imported without licence or as baggage. Profitability Margins in the industry vary depending upon the segment, model and sizes, between a broad range of 10 to 20%. However margins in the window segment are the least. But these are reasonable in the case of Split ACs. Even then, for players who have their own CompressorIGNOU, NEW DELHI

Manufacturing facilities, margins are higher. Margins are highest in Central and Packaged Air-conditioning segments ranging between 20-24%. Important Factors The important factors that govern profitability in the Air-conditioning Industry are Product Technology, Volumes, Distribution Network, After Sales Service and Aesthetics. Most critical in the Product Technology is the Compressor which contributes about 40% of the total cost. The most common type is reciprocating compressor. This is well suited for the Indian conditions where dust and ambient temperatures are relatively high. But the wear and tear is quite high necessitating frequent repairs. The rotary compressor is suitable for conditions where temperature does not exceed 55 degree Celsius. Beyond this, its cooling efficiency decreases. Hence it is suitable for coastal areas like Mumbai where temperatures are low as compared to central and northern India. Also it cannot withstand voltage fluctuations which are common in India and once spoiled it cannot be repaired. But the advantage is that it is much more efficient than the reciprocating one at moderate temperatures, consuming less power with negligible wear and tear problems. The latest compressor technology is the scroll compressors. It has no part which can cause wear and tear, is very efficient under variety of conditions and can be repaired instead of being replaced. The three world leaders in compressor technology Copeland, Bristol and Tacumbch already have a presence in India through their collaboration with Kirloskar, Carrier Aircon and SIEL respectively. Since this is a volume driven business in the window segment and technology driven in the package segment, distribution network and afterIGNOU, NEW DELHI

sales services are the deciding factors in these two segments respectively. Being a consumer durable industry the activities aspect too is important. While 40 to 45% of the sales in the window segment comes from first three months of April to June and the rest from the other months, there is no such seasonality in other segments, so companies have to manage inventory with minimum cost. Outlook During 1999-2000 a total of about 7 lakh air conditioning units were sold and this is expected to rise to a phenomenal 10 lakh units by the year 2003. The industry has been growing at a healthy compound rate of 30% for the past three years and this pace is expected to continue in the near future. While the growth rate in the domestic window segment is expected to be highest at around 50%, other segments are also expected to register healthy growth rates of around 28%. With all the major players investing money towards higher capacities and new entrants setting up their plants, supply is expected to keep pace with demand. Increasing income levels and change in life-styles have led to heavy demand for consumer durables, esp. Air conditioners, washing machines and refrigerators. Since last two three years they have penetrated most urban households. Today, white goods is one of the most brand driven product segments where companies success depends upon marketing power in terms of building brand equity and being able to maintain and support nation-wide sales and distribution network is a prime requirement for effective market penetration. The cost of servicing and maintaining big distribution network

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is phenomenal and this is one of the factors that resulted in regional restriction of some brands. In future demand composition is expected to tilt towards corporates, as more electronic gadgets are used at the work place. The focus will shift from comfort cooling, to process cooling where precise ambient conditions have to be maintained which naturally means that technology will play an important role.

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ABOUT THE PRODUCTDefinition of an AC Air conditioning is simultaneous control of air for: Temperature control Air freshness Filtration, Dehumidification within a confined space.

In other words, A.C. is defined as a process, which heats, cools, cleans and circulates air and its moisture content. Components of an Air Conditioner The Air-conditioner consists of the following components 1. A Cooling Coil (evaporator coil) 2. A Condenser Coil 3. A Compressor and 4. A Fan Motor Working of an Air-conditioner A Window air conditioner cools room air by means of refrigerant. The refrigerant absorbs heat from air and becomes vapour as it flows through the evaporator. A compressor pumps the vapour to condenser, which discharges the heat and turns the vapour back to liquid.

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Three important working cycles of an AC are: 1. 2. 3. Room side close cycle Outdoor open cycle The Refrigerant cycle

The room side close cycle AC sucks the hot air from the room. The air is cooled, dehumidified and redelivered back to the room, during the process the room gradually becomes cold. Outdoor open cycle The fan on the condenser side sucks the air from outside atmosphere and delivers it back to the atmosphere after taking the heat from the condenser coil. The refrigerant cycle The closed cycle in which compressor compresses the refrigerant gas and delivers it to the condenser coil and then to the evaporator coil and back. Type of Air-Conditioners Window A.C. Window AC is the most compact, versatile and cheapest advantage air-conditioning of using system. It has for the both

single

motor

compressor and cooling side. It also takes motor for both compressor and cooling side. It also takes into advantage of the usage of humidity, which isIGNOU, NEW DELHI

absorbed, from cooling sides to lower temperature of condensing side. Split A.C. It is the most versatile and cheapest air conditioning system where window A.C.s cannot be provided. It has the advantage of cooling any place irrespective of its location and just need a passage three inch in diameter so as to connect both sides of split AC. In split AC area covered is higher than the window AC. Package A.C. It is used for larger areas where the tonnage is higher (approx. 3.0 tonne-15 tonnes). It consumes less power. Central A.C. It is used for cooling the area where the tonnage required is more than 50 tons. Though the capital cost is higher but the running cost is very economical. In central air conditioning a final airconditioning is done through cold/hot water running through tubes.

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LITERATURE REVIEW

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A MODEL OF CONSUMER DECISION MAKINGIt presents an overview model of consumer decision-making that reflects the cognitive (i.e. problem-solving) consumer and, to some degree, the emotional consumer. The model is designed to tie together many of the ideas on consumer decision making and consumption behaviour. The model below has three major components: input, process, and output. INPUT The input components of the consumer decision-making model draws on external influences that serve as sources of information about a particular product and influence a consumers product-related values, attitudes, and behaviour. Chief among these input factors are the marketing mix activities of organizations that attempt to communicate the benefits of their products and services to potential consumers, and the nonmarketing sociocultural influences, which when internalized, affect the consumers purchase decisions. Marketing Inputs The firms marketing activities are a direct attempt to reach, inform, and persuade consumers to buy and use its products. These inputs to the consumers decision-making process take the form of specific marketing mix strategies that consist of the product itself (including its package, size, and guarantees): mass-media advertising, direct marketing, personal selling, and other promotional efforts; pricing policy; and the selection of distribution channels to move the product from the manufacturer to the consumer.

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Ultimately, the impact of a firms marketing efforts is governed by the consumers perceptions of these efforts. Similarly in case of a microwave oven the consumer is affected by the product features, its price, any promotional scheme and availability of the product (cognitive behaviour). It is also affected by the advertising appeals sent by the marketer for the consumer (emotional aspect). Thus marketing inputs are very important for AC's, which can motivate the consumer to make the purchase. The consumer develops different perception for different brands because of the differences in the marketing inputs of the respective brands.

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External InfluencesSociocultural Environment 1. Family 2. Informal sources 3. Other noncommercial sources

Input

Firms Marketing Efforts 1. Product 2. Promotion 3. Price

Consumer Decision Making Psychological RECOGNIT Process ION Field1. 2. 3. 4. Motivation Perception Learning Personality

NEED

Prepurchase Search

EXPERIENCE

Evaluation of Postdecision BehaviourPurchase 1. Trial 2. Repeat purchase

Output

Postpurcahse Evaluation

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Sociocultural Inputs : The second type of input, the sociocultural environment, also exerts a major influence on the consumer. Sociocultural inputs consist of a wide range of noncommercial influences. For example, the comments of a friend, an editorial in the newspaper, usage by a family member, or an article in Consumer Reports are all specific and direct noncommercial sources of information. The influences of social class, culture, and subculture, although less tangible, are important input factors that are internalized and affect how consumers evaluate and ultimately adopt products. Since we see that AC's are a luxury product for the Indian consumer thus the Indian consumer is really effected by the sociocultural inputs. Process The process component of the model is concerned with how consumers make decisions. To understand this process, we must consider the influence of the psychological concepts. The psychological field represents the internal influences (motivation, perception, learning, personality, and attitudes) that affect consumers' decision-making processes (whether they need or want a microwave oven or not, their awareness of various product choices, their information-gathering activities from shops, articles,

phaphlets, advertisements,etc and their evaluation of alternatives based on their own prefrence). As pictured in the process component of the overview decision model, the act of making a consumer decision consists of three stages: (1) need recognition, (2) prepurchase search, and (3) evaluation of alternatives. Need Recognition: The recognition of a need is likely to occur when a consumer is faced with a "problem."

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Among consumers, there seem to be two different need or problem recognition styles. Some consumers are actual state types, who perceive that they have a problem when a product fails to perform satisfactorily (e.g., a normal oven or toaster griller no longer keeps a problem when a product fails to perform satisfactorily (e.g., a normal oven no longer bakes or cooks properly). In contrast, other consumers are desired state types, for whom the desire for something new may trigger the decision process. Need or problem recognition also can be viewed as either simple or complex. Simple problem recognition refers to needs that occur frequently and that can be dealt with almost automatically, such as becoming hungry and purchasing a candy bar from a vending machine. Complex problem recognition, however, is characterized as a state in which a problem develops over time, as the actual state and the desired state gradually move apart.

Prepurchase Search: Prepurchase search begins when a consumer perceives a need that might be satisfied by the purchase and consumption of a product. The recollection of past experiences (drawn from long-term memory storage) might provide the consumer with adequate information to make the present choice. On the other hand, when the consumer has had no prior experience, he or she may have to engage in extensive search of the outside environment for useful information on which to base a choice. The consumer usually searches his or her memory (the

psychological field depicted in the model) before seeking external sources of information regarding a given consumption-related need. Past experience is considered an internal source of information.IGNOU, NEW DELHI

The greater the relevant past experience, the less external information the consumer is likely to need to reach a decision. Many consumer decisions are based on a combination of past experience (internal sources) and marketing and noncommercial information (external sources). The degree of perceived risk can also influence this stage of the decision process. In high-risk situations, consumers are likely to engage in complex information search and evaluation; in low-risk situations, they are likely to use very simple search and evaluation tactics. An examination of the external search effort associated with the purchase of different product categories (e.g., TVs, VCRs, microwave ovens or personal computers) found that, as the amount of total search effort increased, consumer attitudes toward shopping became more positive, and more time was made available for shopping. Not surprisingly, the external search effort was greatest for consumers who had the least amount of product category knowledge. It follows that the less consumers know about a product category and the more important the purchase is to them, the more time they will make available and the more extensive their prepurchase search activity is likely to be. Additionally, by conducting focus groups and other consumer research on how expectations of a product influence consumers' subsequent interpretation and evaluation of product information, firms are assisted in their efforts to devise better products and to promote their products' strongest points. How much information a consumer will gather also depends on various situational factors. Many consumers prefer to approach a new and somewhat complex decision with more deliberation and consideration of the options (i.e.,IGNOU, NEW DELHI

considering competitors' services and/or options that can be added onto the core service). Evaluation of Alternatives: When evaluating potential alternatives, consumers tend to use two types of information: (1) a "list" of brands from which they plan to make their selection (the evoked set) and (2) the criteria they will use to evaluate each brand. Making a selection from a sample of all possible brands is a human characteristic that helps simplify the decision-making process. Evoked Set: Within the context of consumer decision-making, the evoked set refers to the specific brands a consumer considers in making a purchase within a particular product category. (The evoked set is also called the consideration set.) A consumer's evoked set is distinguished from his or his inept set, which consists of brands the consumer excludes from purchase consideration because they are felt to be unacceptable (e.g., they are seen as "inferior"), and from the inert set, which consists of brands the consumer is indifferent toward because they are perceived as not having any particular advantages. Regardless of the total number of brands in a product category, a consumer's evolved set tends to be quite small on average, often consisting of only three to five brands. It is essential that product be part of a consumer's evoked set if it is to be considered at all. The five terminal positions in the model that do not end in purchase would appear to have perceptual problems. For example: (1) Brands may be unknown because of the consumer's selective exposure to advertising media and selective perception of advertising stimuli: (2) Brands may be unacceptable because of poor qualities or attributes or inappropriate positioning in either advertising or product characteristics: (3) Brands may be perceived as not having any special benefits and are regarded indifferently by the consumer: (4) Brands may be overlooked because they have not been clearly positioned or sharply targeted at theIGNOU, NEW DELHI

consumer market segment under study: and (5) Brands may not he selected because they are perceived by consumers as unable to satisfy perceived needs as fully as the brand that is chosen. In each of these instances, the implication for marketers is that promotional techniques should be designed to impart a more favourbale, perhaps more relevant product image to the target consumer. This may also require a change in product features or attributes (more or better features). Criteria Used For Evaluating Brands: The criteria consumers use to evaluate the brand that constitute their evoked sets usually are expressed in terms of important product attributes.

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DECISION MAKING BY CONSUMERA consumer moves from one stage to another in order to arrive at a final purchase decision. Though he may not pass through all the stages for all products choices, conceptually and sequentially the following stages are relevant: problem recognition, information search, alternatives evaluation, purchase action and finally, post purchase behavior. The stages in the buying process, when consumers seek information about brands and the extent of the information search, are influenced by an array of factors such as time pressure, previous experience, friends advice, and so on. However, two factors are particularly useful in explaining how consumer decide, as discussed above. Given this we can categorize the different decision making processes into four categories, based on the extent of consumers involvement with a purchase decision and his perception of the degree of differentiation between brands. The matrix below simply illustrate the stages through which the consumer is likely to pass while making different types of brand purchases. TYPOLOGY OF CONSUMER DECISION PROCESSES PETRCEIVED BRAND DIFFERENCE SIGNIFICANT CONSUMER INVOLVEMENT HIGH LOW

Extended problem Solving Tendency to limited or complex decision Problem solving or variety making,-AC'S seeking behavior (Ice cream, biscuits) Dissonance reducing or Limited problem Solving or brand loyalty (e.g. cement, inertia (Inexpensive pen) steel)

LOW

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Extended Problem Solving / complex decision making. EPS occurs when consumers are involved in the purchase and when they perceive significant difference between competing brands in the same product field. Such is the case for AC'S. In such a case the consumer passes through the five stage shown below: COMPLEX DECISION MAKING

Problem recognition Feed back Information search Alternative evaluation Post-purchase evaluation

The decision process starts with the consumer becoming aware of a problem. This recognition triggers a need to resolve the problem, and, if he feels particularly strongly, he will embark on a path to resolve it depending upon his urgency to act and his environment (e.g., time availability, financial situation, confidence, etc). He might take action quickly, or more likely he will become more attentive to the product-related information and buy a brand sometime later. The search for information would first start in his own memory and, if he feels confident that he has sufficient information already, he will be able to evaluate the available brands. Mostly though in COMPLEX DECISION MAKING situation he is unlikely to feel confident to rely on memory aloneIGNOU, NEW DELHI

(more so for infrequently purchased brands). So he will begin to scan the external source (visit shops, ask friends). As he gets more information, the highly involved consumer will start to learn how to interpret the information in his evaluation of competing brands. Even so he does not single-mindedly search for information about one particular purchase. In any one day people are bombarded by hundreds of marketing messages, of which, one estimate puts it; they are attentive to less than 2%. Consumers perceptual process protects him from information overload and helps him search and interpret new information. The perceptual process may lead to some interest being aroused in a message to which then the attention will be paid. Even here, however, of the few information sources that he takes notice of, he is likely to ignore the points that do not conform to his prior expectations and interprets some of the other points within his own frame of reference. Thus the marketers have to overcome, among other things, three main problems when communicating a brand proposition. First they have to fight through the considerable noise in the market to get their message heard. If they can achieve this, the next challenge is to develop the content of the message in such a way as there is harmonty between what the marketer puts into the message and what the consumer takes out of the message. Having overcome these two hurdles, the next challenge is to make the message powerful enough to be able to reinforce the other marketing activities designed to persuade the consumer to buy the brand. While mentally processing messages about competing brands, a consumer would evaluate them against these criteria deemed by him to be most important. Brand beliefs are then formed. In turn, these beliefs begin to mould an attitude. If a sufficiently positive attitude evolves, then there is aIGNOU, NEW DELHI

greater likelihood of a positive intention to buy the brand. Having decided which brand to buy then the consumer would make a purchase, assuming a retailer can be found for that particular brand and that the brand is in stock. Once the product reaches home, the consumer would discover its capabilities and assess how well his expectation were met by the brand. He would undertake a post purchase evaluation. Satisfaction with different brand related dimensions will strengthen positive beliefs and attitudes towards the brand. Were this to be so, the consumer would be proud of his purchase and praise its attributes to his peer group. With a high level of satisfaction, the consumer would look favorably at this companys brands in future purchase. Should the customer be dissatisfied though, he would seek further information about the purchase to provide reassurance that the correct choice was made. If he finds sufficiently reassuring information confirming a wise choice, he will become more satisfied. Without such positive support he will become disenchanted with the brand and overtime will become more dissatisfied. He is likely to talk to others about his experience, not only vowing never to buy that brand again, but also influencing others that the brand should not be bought. In the event that the customer is satisfied with the brand purchase and repeats it in a relatively short period of time he is unlikely to undergo such a detailed search and evaluation process. Instead he is likely to follow what has now become a more routing problem solving process. Here problem solving means that problem recognition would be followed by memory search which, with prior satisfaction would reveal clear intention, leading to purchase. Brand loyalty would ensure which would be reinforced by continued satisfaction.IGNOU, NEW DELHI

When consumers are deeply involved with the brand purchase and when they perceive large differences between brands they are likely to seek information actively in order to make a decision about which brand to buy. As such brand advertising may succeed by presenting relatively detailed information explaining the benefits of the brand, as well as reinforcing its unique differential positioning. It is important for the marketer to identify these attributes. Consumer is likely to seek information from several sources; so the marketer should use a multimedia promotional approach. Dissonance Reducing This type of brand buying behavior is seen when the consumer is highly involved with the purchase. But he perceives that competing brands have only minor differences. Such consumers may be confused by the lack of clear brand differences. Without any firm belief about the advantage of any particular brand, a choice will most probably be made based on other reasons such as a friends opinion or advice given by the retailer. Following the purchases the consumer may feel unsure, particularly if he receives information that seems to conflict with his reasons for buying. The consumer would experience mental discomfort, or what is known as post purchase dissonance and would attempt to reduce this state of mental uncertainty. This could be done either by ignoring the dissonant information (for example, by refusing to discuss it with the person giving conflicting views) or by selectively seeking those messages that confirm prior belief. In this type of brand purchase decision, the consumer makes a choice without firm brand belief and then changes his attitude after the purchase often on the basis of experience with the chosen brand. Finally, learning occurs on a selective basis to support the original brand choice, theIGNOU, NEW DELHI

consumer being attentive to positive information and ignoring negative information relating to this brand. DISSONANCE REDUCTION Problem recognition Purchase decision Evaluation of brands Brand belief formed By active learning from ads. When consumers are involved in a brand purchase, but perceive very little brand differentiation or lack the ability to judge between competing brands, the advertising should reduce post purchase dissonance through providing reassurance after the purchase. Also, as consumers are unsure about which brand to select, promotional material close to the point of purchase is particularly important in increasing the likelihood of a particular brand being selected. Similarly, any packaging should try to stress a point of difference form competitors and sales staff has to be trained to be brand reassurer rather than being brand pusher. This case is not very common in case of AC's but in some cases due to a brand prefrence it may take place. Even if it takes place it happens with not more than 1% consumers, as AC's are a high involvement purchase with significant differences in brands.

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TYPE OF DECISION MAKING STAGE AND BEHAVIOURType Behaviour Of Complex Decision Making---Microwave Oven Stage In Buying Pro ble m Re cog niti on Info rma tion Se arc h Customer Proactively Identifies A Problem Customer Passively Recognizes Problem Conscious Recognition Of A Problem That Needs Solution. Passive Recognition Of A Problem That May Be Solved. Variety Seeking Loyalty Inertia

A

Various Sources, Including Personal Selling, Are Tapped

Once A Choice Is Made, Further Search Is Made To Know If Alternatives Have Emerged That Can Be Bought The Next Time. One Or Two Important Criteria Are Employed To Evaluate.

Prior Evaluation Leads To Brand Choice, No Further Need For Information Or External Search.

Hardly Any External Search For Information Is Made.

Alt ern ativ es Eva luat ion Pur cha se

Multiple Criteria Are Used For Evaluating Perceptually Different Brands.

Prior Evaluation Has Led To The Selection; No Further Evaluation Of Brands.

No Careful Evaluation Of Brands Is Under Taken: It Is Not Worth The Effort.

No Effort Is Spared To Buy The Best Suitable. Purchase Is Pre Meditated.

Consumer Switches Brands For Novelty That Is Assessed Through Packaging, Displays, Etc.

Purchase Is Routine, But No Compromises. Purchase Is Repeated.

Purchase Is Repeated, But Due To Sheer Inertia, And Not Because The Bought Brand Is The Best. No Careful Evaluation, Except That It Should Not Cause The User Trouble.

Pos t Pur cha se Eva luat ion

Careful Evaluation A Positive Result Will Mean Increased Loyalty.

Brand Is Evaluated Only Post Purchase, And Beliefs About It Are Formed Only On The Basis Of Consumption Experience.

Loyalty Continues If The Brand Continues To Perform.

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CARRIER AIRCON LIMITEDCOMPANY PROFILE In 1902, Dr. Willis Havil and Carrier invented and secured the patent for a revolutionary weather control concept air-conditioing. Since then the company he founded Carrier Corporation, USA, has led the world in air conditioning; and today after almost 100 years, continues to remain the undisputed leader, worldwide. Carrier Corporation owns 51% of the equity of carrier aircon limited, India the other 49% is held by FIs FIIs and a proximately 20,000 India investors. By virtue of this 51% holding by Carrier

Corporation, Carrier Aircon is guaranteed a steady stream of technologically advanced air conditioning in India can match. Carrier India is the No. 1Air Conditiioning Company in India today. The company has established the No. 1 position in the in the Window AC and Split AC segments and is striving for the No. 1 positioning in the Heavy Air-conditioning segment as well. Carrier's manufacturing facility Carriers main manufacturing facility and corporate office complex is located on the main Delhi-Jaipur highway, 40 Kms SW of Delhi. It has been recognized by carrier as one of its finest in the world and is arguably the most sophisticated air conditioning facility in the country.

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Carriers range Today Carrier Aircon manufactures the widest and most

comprehensive range of air conditioning products in this country, from Hermetic reciprocating compressors to Chillers. To refer to our entire gamut of products please refer to the brochure enclosed. Distribution Carrier India has the widest distribution network of any air conditoning company in India, including 30 marketing and service offices a list of telephone nos. on each city is mentioned in the brochure. In addition to this we have over 400 authorized sales and service dealers in almost every city in the country. Service In addition to our 400 dealers, each of whom forms a service point we have our own service centers at all our office locations. These locations have trained manpower, stock all necessary spares and are equipped with tools and other equipment required to provide service to our valued customers. In Delhi city they have started with a dedicated call center wherein our customers can login their complaints 24 hours a day. The call center is online with all their dealers who acknowledge the complaint immediately. Moreover many of their dealers have mobile service vans equipped with mobile phones to give prompt service.

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Their customers A list of their customers reads like the Whos who of the business world. The most prestigious names, from government departments to leading private sector companies are using Carrier Air

conditioners. Today carrier is also a household name with a major share of our sales going to the residential segment. Their customers are their inspiration and the purpose of their business. To give them Comfort is their ultimate objective.

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BACKGROUNDCAL was set up by Carrier, USA, in 1985 to manufacture airconditioners, hermetically sealed compressors and heat transfer coils. It made its maiden public issue in 1987 with this Carriers (parent company) holdings was reduced to 40%. Later in March 1994, the company made a preferential issue to parent company to increase its stake to 51%. CARR commissioned its main plant at Narsinghpur (Gurgaon, Haryana), in 1988. It has an assembly unit at Silvassa, set up in May 94, primarily to take advantage of sales tax benefits. Carrier, USA Carrier, USA, a division of United Technologies is the world leader in HVAC systems. Carrier has a global presence, though its penetration in Japan (the largest AC market is low). The strong R&D and high quality service standards have enabled Carrier to strengthen its market leadership. Registered Office: Narsingpur, Kherki Daula Post, Gurgaon - 122001 Telephone: 01272 323231 Fax: 01272 323230 Website:

www.carrierindia.com Carrier Aircon is the market leader in the domestic window air conditioner industry. It is a 51% subsidiary of Carrier Corp, the biggest US maker of air-conditioning equipment and a subsidiary of the $ 30 bn multinational United Technologies Corporation. The parent has been providing technology for the products

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manufactured by Carrier Aircon in India. This gives the company the ability to respond quickly to the changing market demands, introducing newer and more technologically advanced products. Carrier manufactures a wide range of air-conditioners at its plant at Gurgaon, Haryana. The company has a share capital of Rs. 23.4 crore and number of total shares outstanding amount to 2.34 crore. The face value per share is Rs.10. The stock is currently, as on 18th May, 2001, trading at Rs.95.80 and the market capitalization of the company is around Rs. 224.17 crore. Ramesh C Sarin -

Chairman A K Srivastava Managing Director J B

Dadachanji - Director J T Bowler Jonathan W Director Ayers -

Director Nicholas T Pinchuk - Director P C D Nambiar - Director P S Dasgupta - Director Robert E Galli - Director Vijay P Gokhale Director Akhil Johri - Director G Darnis - Director G Raghavan Alternate Director The main line of activity of Carrier Aircon is air conditioners. As much as 70 percent of the company's revenues come from window AC and split AC segment, with a market share of around 21 percent in the window AC and 35 percent in the split AC segment. The consumer durable segment can be segregated into consumer electronics (TVs, VCRs/VCPs and audio systems) and consumer appliances (also known as white goods) like refrigerators, washingIGNOU, NEW DELHI

machines, air conditioners (ACs), AC's, vacuum cleaners and dishwashers. Over the years, demand for consumer durable has increased with rising income levels, double-income families, changing lifestyles, availability of credit, increasing consumer awareness and

introduction of new models. Most of the segments in this sector are characterized by fierce competition, emergence of new companies (especially MNCs), introduction of state-of-the-art models, price discounts and exchange schemes. There are more than a dozen companies operating in the white goods segment, which is witnessing a huge capacity build-up. There is excess capacity in all the three sub-segments (ACs, refrigerators, and washing machines) and supply is expected to continue to outstrip demand. There is low penetration, in white goods segment with rural markets yet to develop due to infrastructure bottlenecks. The factors hurting the growth of the industry are rising raw material costs, competition from new entrants, stiff competition leading to higher advertisement expenditure, delay of capital projects - as a result of shift to contract manufacturing. Carrier Aircon's mission is - leadership in every segment of the Indian air conditioning industry through advanced technology, high quality service and a full range of airconditioning solutions. Carrier Aircon plans to increase its retail network to 1,200 retailers, out of which 400 will exclusively be Carrier outlets, 120- 130 will be direct retailers and around 700 retailers will be offering multi-brand products.

The company plans to achieve a Rs 500 crore sales target by the end of the current financial year March 31, 2001. In a bid to counter competition and be more cost competitive the company hasIGNOU, NEW DELHI

undertaken many strategic initiatives namely resolving of labor unrest, introduction of a new global product range, launch of a new retail thrust in the form of dealer financing, warranty and increased ad-spend. The sales breakup of the company for FY01 and FY02 are as follows:Period ended Sales value (Rs mn) Chillers Compressors Room air conditioners Stabilizers Sales volume (unit) Chillers (Nos) Compressors (Nos) Room air conditioners (Nos) Stabilizers (Nos) Unit realisation (Rs/unit) Chillers (Nos) Compressors (Nos) Room air conditioners (Nos) Stabilizers (Nos) 101,692 7,366 35,032 2,728 114,797 7,189 37,538 2,727 +12.88% -2.4% +7.15% -0.03% 1,811.0 37,393.0 78,163.0 2,534.0 2,027.0 28,779.0 75,072.0 2,373.0 +11.93% -23.04% -3.95% -6.35% 184.2 275.4 2,738.2 6.9 232.7 206.9 2,818.0 6.5 +26.33% -24.87% +2.9% -5.8% 03/01 03/02 % Change

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PRODUCTS Air-conditioners have the highest market share in split air

conditioners in India. Carrier Aircon is currently the largest manufacturer of comfort air conditioners (73% of FY02 sales) in India. Industrial AC's account for 6% of the company's sales.

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SWOT ANALYSISStrengths: First air-conditioning company to introduce the concept of a Comfort Shop. First to develop exclusive dealer network in the country. Today, there are over 400 Carrier Aircon exclusive dealers and 60 Carrier compressor dealers in India. It has a strong setup, Willis Carrier Engineering Center, to provide technological support to develop new products and upgrade existing ones. It has successfully introduced finance schemes that have taken airconditioners out of the luxury category and made it affordable for the home buyer. Carrier has a strong nation-wide infrastructure with around 20 offices and 400 odd exclusive dealers. Weaknesses: Highly dependent on its parent company for R&D and technology support. Opportunities: Confederation of Indian Industry (CII) has urged the government to reduce special excise duty(SED) on air-conditioners from 16% to 8% in the forthcoming budget.

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Growing Indian middle class (approx. 250 m) characterized with low penetration level of consumer durable. Advent of internet provides an excellent opportunity to reach to a large base of customers and cut costs. Threats: Likely to face fierce competition from domestic companies as they have well-acknowledged brands, an extensive distribution network and better insights about the local market conditions. Increased threat from cheaper imports, especially from China

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CARRIER AIRCON LTDRoom ACs CAL manufactures window ACs of 1, 1.5 and 2ton (TR) and split ACs ranging from 1 TR to 15 TR. CARR has a countrywide marketing network of about 406 exclusive dealers, who are technically trained for efficient marketing and servicing. The company has a network of 18 Carrier Comfort Shops in leading cities, to demonstrate live the working of its products. Besides regular R&D work undertaken by the parent company enables CARR to introduce new products. They have recently launched the Global series of high wall split room ACs in the 1, 1.5, 2,3 and 4 TR range. The company has the capacity to manufacture 36,000 room ACs and 60,000 compressors. It has decided to expand its compressor capacity from 60000 units to 110000units.Hermetically sealed compressors (the main component in an AC) and heat transfer coils are backward integrated products, which are also sold to other AC manufacturers. The company plans to phase out ozone depleting CFCs and instead use HCFCs in its ACs. CARR is not a very active player in central AC. However the company has the facilities to manufacture chillers and AHUs(air handling units). The total capacity of AHUs is 300 units and of chillers is 150units.

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Recent developments CAL intends to strengthen its existing service network. This business would also target the secondary market and in the long run help improve margins. The company is in the process of setting up call centres in the major metros to improve after sales services. CAL has recently introduced new and more efficient room ACs with specialized features like carbon filters. In addition to the new range of products, the parent is also increasing its investments in core technology including compressors, coil, etc. The company has also put in place a new management team for operations, a new Managing Director and CFO, marketing chief, an engineering head for R&D operations and director services. CAL has outlined an e-business strategy as per which 30% of its supplies would be procured through B2B e-commerce. The

companys web site is incorporating a facility for NRIs to gift ACs in India. The company has sold products worth Rs10mn online through a tie up with jaldi.com. It has also taken some new marketing initiatives, which include zero percent finance schemes, five-year warranty schemes and doubling of its ad and promotion spends. CARRIER is a part of UNITED TECHNOLOGIES, a FORTUNE 500 company which in its fold amongst others, names like SIKORSKY, HAMILTON STANDARDS, OTIS and, PRATT & WHITNEY. The combined technological resource sharing amongst these global giants helps keep CARRIER at the forefront of the industry.IGNOU, NEW DELHI

CARRIER AIRCON LIMITED, INDIA Technical execution & service support is available to Carrier's India from Carrier's Asia Pacific head quarters in Singapore for any job involving new generation equipment launched by Carrier or

otherwise. Stock of all the spares needed is available either in the factory at Gurgaon or at local offices from where warranty services are provided. Carrier is known for its extensive dealer network. Some of such dealers having very sound technical know how, and project exposure has proved to be good air conditioning contractors. They are capable of undertaking any size of project under our guidance and supervision.

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FUTURE GENERATION PRODUCTS For more than a decade, the CARRIER Flotronic chillers have been utilized in diverse applications like schools, offices & industrial process applications worldwide. With a history of proven

performance & reliability, CARRIER has combined the advanced temperature controls screw technology to develop the screw Chiller. The chiller has been developed after extensive research & development by UNITED TECHNOLOGIES R & D center, taking in to cosideration all the needs of customers such as, Power consumption, size of equipment, Noise level, Field serviceability. The Global Series is armed with the DFX, the Designed For extra philosophy, that takes on the adverse environmental conditions of the future. So no matter what becomes of the outdoors, you will never have to compromise with your comfort indoors. On one hand, the top-of-the-line Celesta and Aspira of the Global Series, equipped with Low Temperature Catalyst (LTC) and Bactericidal Enzyme Filter Media (BEFM), gives you the purest air. On the other, Millennia, the air-conditioner designed for the next

millennium, will get comfort within the reach of millions. Carrier also offers the ultimate in split air-conditioners, the great looking Hi-Wall and the futuristic and compact Slim Pac. Now you can stop worrying about the growing pollution and let your generations, among other things, inherit pure air for a healthy living! Carrier Corporation US is the global leader in air-conditioning with a turnover today of about US$ 6.5 billion (Rs. 280 billion). With operations in 165 countries, the Carrier portfolio includes 350 air-

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conditioning

products.

Carrier

Corporation

has

provided

air

conditioning solutions for some of the most famous landmarks in the world: The White House in the USA, the Great Hall of the People of China, the Imperial Palace in Japan, the luxury liner Queen Elizabeth II, the Sistine Chapel in Rome among others.

Carrier started its operations in India with the setting up of Carrier Aircon Limited in 1987. The competitive advantage of Carrier Aircon Limited derives itself from the fact that Indian consumer has access to advanced technology and air-conditioning products from the world wide product portfolio of Carrier. Carrier Corporation owns 51% of the equity in Carrier Aircon Limited, India; the other 49% is held by approximately 20,000 Indian investors.

Today, there are over 400 Carrier Aircon exclusive dealers and 60 Carrier compressor dealers in India. Its operations in Gurgaon are spread across 20 acres having full-fledged manufacturing facilities starting from compressors, windows splits and chillers supported by strong R&D facility. The Corporate office is also located in the same campus that gives Carrier fast and effective control over the product decisions. Carrier has another state-of-the-art

manufacturing facility in Daman. HVAC, Heat Ventilation & Air-conditioning industry in India is undergoing a revolutionary change and customer is increasingly becoming interested and curious about the information being fed to him about Air-conditioning from various sources. This information may at times be tempered and mislead, resulting in confusion among some customers. This situation can be harmful not only toIGNOU, NEW DELHI

the customers but can result in bringing bad name to the entire HVAC industry. The probability of these increases as the

competition, in the shape of the newborn multi nationals has been spreading in India from the last few months. As a Worldwide giant and leader in Air-conditioning industry, it becomes our moral responsibility to educate the consumers about the ground realities, which assists him in making objective, positive and correct decision. Carrier Aircon has the State-of-the-art manufacturing base in India (Gurgaon & Daman) to produce the widest range of products in terms of Window, Duct Free (Splits), Ducted Air-conditioners, Fan Coil Units, Air-Handling Units & the Big Chillers. Carrier launches its World wide latest products (like Global Series in Window & Split Air-conditioners segment) in India simultaneously with other countries. In fact Carrier India has largest number of models available. Carrier Aircon has the best & World Class Air-conditioning

Research & Development Center in INDIA, where all our products are rigorously tested before the launch. A feature, which no other competitor can match. These superior models incorporating contemporary international features are ideal for residential and moderately sized commercial applications providing wall to wall air conditioning with no chilled corners or warm zones.

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Common Features - Global Series Window ACs Splash-up System This adds to convenience and performance as well as appearance, because theres no need for a drain hose to carry off water. Slide-out Chassis The construction of Carriers window-type air

conditioner, allows easy installation even in high places. service. Slide-out chassis facilitates after-sales

Fresh Air The vent-control option discharges the stale air out of room, and at the same time frsh air can enter the room. To enable the fresh air to enter the room the vent has to be kept in OPEN position. 7 Element Lanced Fins

Unique Equilateral design enables better heat transfer and gives better cooling.

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Cross-Hatched/Internally Grooved Copper Tube The inside of the copper tube features grooves which dramatically increase exchange efficiency. 5 Year Warranty Every Global Series window room air-conditioner comes with a 5year warranty on the compressor. Add-on Comprehensive

Maintenance Contract options are also available. Suction Slinger Fan Uniquely designed fan with radically positioned blades generate higher air quantity. Special suction slinger ring uses the condensate water to enhance cooling performance. Carrier Compressor Every Carrier air-conditioner is built around world class, power saving Carrier compessors, manufactured to the quality standards of Carrier Corporation, USA. Reciprocating compressors ensure : High energy efficiency ratio; low power consumption Wide operating voltage (187V to 253V) Built in safety features for reliability and durability Low noise Light, compact and available in 1.0, 1.5 & 2.0 tonnes. Rotary compressor available in select models.

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Multifunctional filters to purify air The Global Series air-conditioners are equipped with the state-ofthe-art Filters - the Bactericidal Enzyme Filter (BEF) and Low temperature Catalyst - (LTCMD2). The BEF filter doesnt merely trap bacteria, it kills them. The LTC-MD2 eliminates cancer-causing substances which comprises of formaldehyde. Features Pre-filter traps dust particles. Bactericidal Enzyme filter actually kills Bacteria, Fungi, Viruses and other micro-organisms by Lytic Enzyme action, thereby preventing secondary contamination of the room environment besides removing dust particles and smoke. Low Temperature Catalyst removes harmful and unpleasant odours from the room environment, by catalytically breaking them down into non-odourous compounds. Specifically removes cancer-causing Formaldehyde commonly present in room environment. This filter also has a long life - atleast 10 years.

4 -Stage Filter This filter is designed for the new millennium. It has four stages of filteration to process the air. The standard filter to get rid of larger dust particles and the other three special filters to make the air bacteria-less, smokeless and odourless.IGNOU, NEW DELHI

Features 1st Stage - Pre-filter for removal of larger dust particles. 2nd Stage - Persimmon Catechin filter traps and kills bacteria. 3rd Stage - An Electrostatic filter traps minute particles of smoke, as well as the suspended particulate matter present in the air. DYNA The lightweight Dynamic Performer from the Carrier Family. It is equipped with features to give you power saving and better aesthetic experience. Available in 1.0 Ton.

Features and Benefits of DYNA Rotary Compressor Light-weight air-conditioner 4-way air distribution Designed for hi-ambient conditions Pure air Anti rust Stylish aestheticsIGNOU, NEW DELHI

Easy accessible filters OPTIMA The faster cooling, better heat transfer, powerful motor, anti-rust mechanism and new looks makes this model stand apart. Thus vowing you and your family with optimum performance in the worst of atmospheric conditions. Available in 1.5 and 2.0 tonnes. Features and Benefits of OPTIMA No field lubrication 4-way air distribution Designed for hi-ambient conditions Powerful cooling Anti rust Stylish aesthetics 2-way removable filter Pure air

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Technical Specifications - Optima

Model Nominal (Btu/hr) Power input (Watts) Air circulation (CFM) EER Type Compressor Model Type Fan Motor Cooling capacity (KW)

1.5 TR 5.43 18600 1950 410 9.54 Reciprocatory NE 1900 BB PSC

2 TR 7.0 24000 2850 480 8.42 Reciprocatory NE 2100 BB PSC 2 1250 23010%-1-50 468x673x744 870 R-22

No of speeds 2 Nominal speed(rpm) 940 23010%-1-50 468x673x744 650 R-22

Power supply Unit Dimensions(mm) Refrigerant Charge (GMS) Refrigerant

(V-ph-Hz) HxWxD

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CELESTACelesta is a designer's air-conditioner, in other words, beauty personified. With carefully selected eye-pleasing design and colours, Celesta is all set to capture the heart of your better half. It is designed for the new millennium! Fully featured and equipped with Digital LCD remote control to give you a celestial air conditioning experience. Available in 1.5 and 2.0 tonnes. Features and Benefits of Celesta Digital LCD remote control Filter cleaning indicator (filter itself) Turbo Sleep mode Auto timer on/off Room temperature indicator Indoor Air Quality filters for healthy & purified air No field lubrication Quiet operation 4-way air distribution

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Designed for hi-ambient conditions Powerful cooling Pure air Anti rust Stylish aesthetics Easy accessible filters Technical Specifications - CelestaModel Nominal Cooling capacity (KW) (Btu/hr) Power input (Watts) Air circulation (CFM) EER Type Compressor Model Type No speeds of NE 1900 BB PSC 2 NE 2100 BB PSC 2 1.5 TR 5.43 18600 1950 410 9.54 Reciprocatory 2 TR 7.0 24000 2850 480 8.42 Reciprocatory

Fan Motor

Nominal 940 speed(rpm) Power supply Unit Dimensions(mm) Refrigerant Charge (GMS) Refrigerant (V-ph-Hz) HxWxD 23010%-1-50 468x673x744 650 R-22

1250 23010%-1-50 468x673x744 870 R-22

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Silencia True to its name, this machine is equipped with features that gives you a comfortable and silent air -conditioning experience!

Available in 1.0 and 1.5 tonnes. Features and Benefits of Silencia Quiet operation High Energy Efficiency Ratio Rotary Compressor Powerful cooling Stylish aesthetics Anti rust Slide in slide out chasis Easy accessible filters 4-way air distribution Green fins 12 hour programmable timer*

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Technical Specifications - SilenciaModel Nominal (Btu/hr) Cooling capacity (KW) 1.0 TR 3.5 12000 1263 360 9.5 Type Type Fan Motor No speeds Power supply Unit Dimensions(mm) Control (V-ph-Hz) HxWxD of 3 3 Rotary Totally Enclosed 1.5 TR 5.25 18000 1894 450 9.5 Rotary Totally Enclosed

Power input (Watts) Air circulation (CFM) EER Compressor

23010%-1-50 23010%-1-50 428x659x730 Manual 428x659x730 Manual

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SIERRA INFINITYGreat value for money. An elegant home accessory, the Sierra Infinity combines a soft-touch remote control, sleek lines, noiseless working and the comfort of placing it anywhere you want to. It is built rugged to face the toughest Indian summer. Available in 1, 1.5, 2, 3 & 4 ton capacities. Features and Benefits of SIERRA INFINITY Modular Air Conditioning System : This system comprises an outdoor unit housing the condenser and patented compressor giving noise-free comfort and an indoor unit which can be installed anywhere up to a distance of twenty five feet from the outdoor unit. Beyond this distance, the refrigerant charge needs to be adjusted according to site Flexible Installation : Can be installed anywhere. Under the ceiling, at window level or as a low wall Indoor Unit : Compact, light and sturdy, with no screws visible, it is designed to blend with the dcor any room. Remote Control : Offers one-touch control of aircon functions with state-of-the-art corded remote.IGNOU, NEW DELHI

Silent Blower Designs : A silent blower for smooth, undisturbed flow and low noise levels brought together through Computer Aided Design, Machining and superb Materials Technology. Three levels of cooling : Ergonomically designed blower for three levels of cooling. Air Purification System : A standard nylon net Air Filter effectively removes large micro particles ( up to 10 microns) from the room-air. Easy Maintenance : Slide-out feature keeps maintenance simple and convenient Auto Restart Function : This feature (optional) allows the unit to return to its original operating mode after power failure, thus minimizing the

disturbances to the occupied area. Outdoor Unit : This unit houses the power-saving Carrier compressor which provide a range of comfort features specially suited for Indian conditions - wide operating voltage, minimal noise, durability and unmatched reliability. The powder-coated outdoor unit is allweatherproof being anti-corrosive, and is ideal for coastal areas

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Technical Specifications - Sierra Infinity

INDOOR UNIT Model Nominal (Kcal/hr) Cooling 42DN 012 42DN 012 42DN 012

OUTDOOR UNIT 51MSB 51MSB 51MSB 51MSC 012 018 024 036D 12000 3000 18000 4500 24000 6000 36000 9000 51MSC 048D 48000 12000 -

(Btu/hr) 12000 18000 24000 3000 400 (189) 4500 525 (247) 6000 700 (330)

Nominal air volume CFM (L\sec) Power Supply Type Fan Qty Discharge Type Qty Fan Motor Power Watts(HP) Hi Speed Low Speed Medium Speed Ht (mm) Dimensions Width (mm) Depth (mm) Net weight (Kg) Refrigerant Power consumption Control type

23010%- single-50 Direct Driven DIDW Forward curved Centrifugal fan 2 2 3 1 1 1 Horizontal Permanent Split capacitor Type 1 1 1 1 92 (1/8) 920 541 740 320 60 1 92 (1/8) 920 541 740 320 62 R-22 80 110 120 1550 1950 2750 4050 5100 1 92 (1/8) 920 541 740 320 64 1 150 (1/5) 920 541 1030 435 105 1 150 (1/5) 920 541 1030 435 110 Propeller Fan 1 1

25 37 37 (1/30) (1/20) (1/20) 920 850 800 610 760 260 32 1250 1200 1150 610 760 260 34 1075 1000 925 610 1110 260 50

Corded

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HI-WALL K-SERIESGreat looks, great performance, this new generation Hi-Wall Split Air-Conditioner from Carrier is available with a full-function cordless remote control. Its advanced design, economical running and futuristic styling perfectly complement residential and small

commercial applications. Available in 1.5, 2.0, 3.0, 4.0 ton capacities. Features and Benefits of HI-WALL K-SERIES Remote Control Options : One touch aircon functions available in cordless versions for easy access. Wide-Angled Airflows : Special outward-curving louvers ensure uniform cooling. Air Purification System (Optional) : For clean air devoid of polluted particles. Silent Blower Design : For smooth undisturbed airflow and low noise levels.

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Technical Specifications - Hi Wall K-Series

Units

INDOOR UNIT 42KKL 018 42KKL 024 6000 24000 227 480

OUTDOOR UNIT 51MSB 51MSB 024 018 4500 18000 6000 24000 51MSC 51MSC O O 36D 48D 9000 36000 12000 48000 -

(Kcal/hr) Nominal cooling capacity (BTU/Hr) (L/sec) Nominal air qty (Cfm) (Type) Fan (Qty) Discharge Type Qty Power (Watts(HP)) Fan Motor Hi-speed Med-speed Low-speed Dimension WxHxD Type Compressor Model Qty Net weight Refrigerant Power (Watts) (Kg)

4500 18000 209 440

Centrifugal Cross Flow One Horizontal/Down Permanent Split capacitor One 40(1/19) 1250 1150 1050 50(1/15) 1350 1250 1150

Propeller fan One Horizontal Permanent Split capacitor One 92(1/8) 150(1/8) One 920 740x513x320 1030x694x435

1100x335x205 12 R-22 60 80 1950 14

Reciprocating NE1900 BB 1 62 NE2100 BB 1 64 R-22 2750 4050 5100 NE1900 NE2100 BB BB 2 105 2 110

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HI-WALL P-SERIESGreat looks, great performance This new generation Hi-Wall Room Split Air-Conditioner from Carrier is available with full-function remote control. Its advanced design, economical running and futuristic styling perfectly complement residential and small commercial applications. Available in 1.5, 2, 3 & 4 ton capacities. Technical Specifications - P-Series

Units Model Feature Nominal cooling capacity ERR Power Supply Air Circulation (V-ph-Hz) CFM Type No.of Speeds Fan Motor Hi-speed Med-speed Low-speed Dimensions Width (mm) Height (mm) Depth (mm) Type Make Compressor Model Qty Net weight Refrigerant Power Consumption (Watts) 53 (Kg) 535 (Units) (Kcal/hr) (BTU/Hr)

INDOOR UNIT 53KPC 018703 1.5TR 4500 18000 23010%-1-50 590 53KPD 022703 2.0TR 6000 24000 -

OUTDOOR UNIT 51MSB 51MSB 51MSCO 51MSCO 018 024 36D 48D 1.5TR 4500 18000 9.2 2.0TR 6000 24000 9.1 3.0TR 9000 36000 8.9 4.0TR 12000 48000 9.4

23010%-1-50

Permanent Split capacitor Three 1140 1066 995 1080 295 185 14 R-22 53 1280 1140 1032 1080 295 185 14

Permanent Split capacitor One 920 920 920 740 541 320 740 541 320 1030 694 435 1030 694 435

Reciprocating Carrier NE1900 NE2100 NE1900 NE2100 BB BB BB BB 1 62 1 65 R-22 1950 2650 4050 5100 2 105 2 110

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HI WALL-G-SERIESInternational styling in compact size. Sleek lines, noiseless running and an international air purification system distinguishes the Carrier Hi-Wall Global Series of split air-conditioners. Available in 1, 1.5, 2, 3 & 4 ton capacities. Features and Benefits of HI WALL-G-SERIES Post-modern Design : With an accent on compactness, the indoor unit utilizes the space saving two-vent evaporator system topped off by a high gloss powder coating celebrating aesthetic design. Enhanced Efficiency : High EER reciprocating compressor and double vent heat

exchangers provide efficiency and low operating costs while the Xhatch copper tubes and LSW (lanced sine wave) technologies effect faster cooling. Cordless Remote Control : The sleek LCD cordless remote incorporates a timer and sleep mode along with a real time clock. Air Purification System : With an Air Filter, Active Carbon Filter (optional) and the

Electrostatic Air Filter (optional), this tri-action effectively removes secondhand dust, smoke, virus, bacteria, pollen, soot, ionised particles and mould spores.

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Silent Blower Design : A silent blower for smooth, undisturbed flow and low noise levels brought together through Computer Aided Design, Machining and superb Materials Technology Technical Specifications - Hi Wall G-Series

Units

INDOOR UNIT 42KGB 012 42KGB 012 4500 18000 271 575 42KGB 012 5500 24000 271 575

OUTDOOR UNIT 51MSB 012 3000 12000 51MS 51MS 51MS 51MS B B C C 018 024 036D 048D 4500 6000 9000 12000 18000 24000 36000 48000 -

Nominal cooling capacity

(Kcal/hr) (BTU/Hr) (L/sec) (Cfm) (Type)

3000 12000 133 280

Nominal air qty

Centrifugal Cross Flow One Horizontal/Down Permanent Split capacitor One 24.5(1/31) 1150 1050 1000 24.5(1/31) 1150 1050 1000

Propeller fan One Horizontal Permanent Split capacitor One 92(1/8) 920 1030x694x43 5 150(1/8)

Fan

(Qty) Discharge Type Qty

Fan Motor

Power (Watts(HP)) 16(1/46) Hi-speed Low Medium 1050 950 850

Dimension

WxHxD Type

815x260x18 1080x295x18 1080x295x18 740x541x320 5 5 5 9.2 R-22 14 14 Reciprocating NE2000 BB 1 60 R-22 80 80 1550

Compressor

Model Qty

NE190 NE210 NE190 NE210 0 0 0 0 BB BB BB BB 1 62 1 64 2 105 2 110

Net weight Refrigerant Power Control Type

(Kg)

(Watts)

40

1950 2750 4050 5100

Wireless handset

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SLIMPAC-N-SERIESSlim. Stylish. Powerful. The new Carrier Slimpac split air-

conditioner that's way ahead of the competition. This floor standing unit saves valuable room space. And it is easy to install, making it ideal for cooling large rooms with minimum disruption to the decor. Is swivelling louvers distribute air quickly and uniformly while its elegant contours blend perfectly into any decor. Available in 3 ton. Features and Benefits of SLIMPAC-N-SERIES Self Diagnostic Function : The intelligent electronic circuitry saves a tremendous amount of troubleshooting time and reduces maintenance bills. Modular Air Conditioning System : Suits all applications. The outdoor unit houses the condenser and patented compressor giving noise-free comfort while the indoor unit allows you the choice of installing it anywhere.

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Air Distribution System : With an Air Filter, Active Carbon Filter (optional) and the

Electrostatic Air Filter (optional), this tri-action effectively removes secondhand dust, smoke, virus, bacteria, pollen, soot, ionised particles and mould spores. Remote Control : One-touch control of aircon functions available with a LCD cordless remote. Air Filter : The standard nylon net Air Filter effectively removes large

microparticles (up to 10 microns) from the room air. A pre-filter and drain tray treated with anti-fungus prevents formation of moulds thereby contributing to cleaner and healthier air. Digital Control Display : Allows easy manual operation of the unit. Ambient temperature, three-speed fan movement and auto swing of louvers can be set at the press of a button. Protective Casing : Aesthetically pleasing casing made from High Impact Polystyrene (HIP) to add rigidity and strength.

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Indoor Unit : Intelligent. Elegant. Noiseless. This sleek performer is the perfect complement to designer decor in large rooms Silent Blower Design : A silent blower for smooth, undisturbed flow and low noise levels brought together through Computer Aided Design, Machining and superb materials. Outdoor Unit : The outdoor condensing unit houses the power-saving Carrier compressor with a wide range of comfort features specially suited for Indian conditions - wide operating voltage, silent operation, low running cost and unmatched reliability.Technical Specifications - Slim Pac N-Series Model 53SC6(A) 51MSCO36D 36000 9000 23010%-1-50 4150 21 -

Nominal cooling Capacity (Btu/Hr)36000 (Kcal/hr) 9000 Power Supply (V-ph-Hz) Power Consumption (W) Current (Amp) Nominal (CMH) Fan Type Qty Discharge Air volume 23010%-1-50 430 1.8 (CFM) 820 386

SISW Centrifugal Blower Propeller 1 1 Horizontal Horizontal

fan

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Fan Type Qty. Power Hi-speed Med-speed Lo-speed Control Type Dimensions W x H x D (mm) Compressor Type Model Qty. Refrigerant No of units Net Weight (Kg)

Motor Permanent Split capacitor Permanent Split 1 1 (HP) 1 / 6 1 / 930 920 820 740 Wireless handset 600 x 1800 x 320 1030 x 665 x 435 capacitor 5

R-22 1 53

Reciprocating NE 1900 2 R-22 1 76

BB

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SLIMPAC-G-SERIESThe ultimate cooling machine. The Global Series Slim Pac is the most futuristic air-conditioner in its class. Packed with features like self-diagnosis, full protection device. soft touch remote control and noiseless working, it is ideal for commercial spaces. Features and Benefits of SLIMPAC-G-SERIES Flexible Installation : With the Slim Pac's Modular Air Conditioning System, you can place the indoor unit wherever you choose. It is ideal for unused spaces, e.g corners, in commercial areas. The outdoor unit, housing the noise-free condensor and the patented compressor, sits

comfortably outside. The Intelligent Air-conditioner : The intelligent electronic circuitry of the Slim Pac incorporates a 'self diagnostic' function. In the unlikely case of a malfunction, the source of error is indicated on the Digital Display Panel. This saves a tremendous amount of troubleshooting time and reduces

Maintenance bills. The Purest Air Room : The standard net Air Filter effectively removes large microparticles from the room air. The pre-filter and the drain tray are treated with anti-fungus to prevent the formation of moulds, thereby giving you cleaner and healthier air.

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Easy Operation : The Digital Display Unit, on the indoor unit, allows easy manual operation of the unit. With it you can set ambient temperature, three-speed fan movement and auto swing of louvers at the press of the button. Wall-to-wall Cooling : The four-way Air Distribution System allows uniform cooling of the entire room. You can also use its oscillating louvers to focus cooling in one direction. Durable Casing : The aesthetically appealing casing is made of High Impact polystyrene HIP. This gives superior rigidity and strength that protects the internals from any accident. Weather Control At Your Fingertips : With the sleek LCD cordless remote, you can control all the functions of the Slim Pac from anywhere in the room.

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Engineered Perfection Inside. Designer Appeal Outside : This sleek performer is the perfect complement to designer decor in large rooms. Be it restaurants, conference halls, shops or living rooms. And where space is at a premium, it's super slim design allows you to use otherwise unusable areas, e.g corners. Three levels Of Cooling : Depending upon prevalent weather conditions, with the three speed fan, you can choose between three different levels of cooling. Air-Conditioners Should Be Felt. Not Heard : Now you can enjoy a good night's sleep without hearing even a whisper from your air-conditioner. Computer Aided

Design/Machining(CAD & CAM) coupled with superb materials technology has brought about an exceptionally silent blower. A smooth, undisturbed flow of air keeps noise levels low and air movement high. Built To Last : The condensing unit houses the hemetic reciprocating compressor. It gives a wide range of features especially suited to Indian conditions - wide operating voltage, noiseless working, economical running and high durability.

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Technical Specifications - Slim Pac G-Series

INDOOR UNIT Model Capacity (Tr) Nominal cooling (Btu/Hr) (Kcal/Hr) Nominal Air Quantity Power Supply CFM(CMH) (V-ph-Hz) Type Fan Qty Discharge Type Fan Motor type Qty Power(HP) Control Type Dimensions WxHxD(mm) Type Compressor Model Qty Net Weight Refrigerant Rows/FPI Coil Tube Dia (inch) Face Area(sq ft.) Power Consumption (Watts) (Kg) 42SD3C 2.0 24000 6000 620(1054) 230 10% -1- 50 Sirocco Fan 1 Horizontal 1 1/10 Cordless 500x1750x256 47 R-22 3/19 3/8 2.433 200

OUTDOOR UNIT 51MSB024 2.0 24000 6000 230 10% -1 - 50 Propeller Fan 1 Horizontal 51MSC048D 4.0 40000 12000 230 10% -1 - 50 Propeller Fan 1 Horizontal

Permanent Split Capacitor 1 1/8 740x541x360 Reciprocating NE 2100 BB 1 63 R-22 2/16 1/8 3.196 2900 1 1/5 1030x694x435 Reciprocating NE 2100 BB 2 110 R-22 2/17 3/8 8.430 4700

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CASSETTEUnobtrusive Performer The Ultimate in comfort for commercial buildings, the Cassette's advanced design, patented components and innovative materials give you unparalleled performance. Ideally suited for rooms with low cross beamed ceilings. Available in 2 and 4 ton capacities. Features and Benefits of CASSETTE Modular Air Conditioning System : Suits all applications. The outdoor unit houses the condenser and patented compressor giving noise-free comfort while the indoor unit allows you the choice of installing it anywhere. Air Purification System : The three-phase Air Purification System consists of an Air Filter, Active Carbon Filter (optional) and the Electrostatic Air Filter (optional). This tri-action is highly effective in removing secondhand dust, smoke, bacteria, pollen, soot, ionised particles and mould spores.

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Remote Control : A state-of-the-art LCD wireless remote with large liquid crystal display, selectable operating mode, fan speed, air distribution mode and 24-hours programming with power failure restart. Simplified Installation : Exceptional installation versatility and simplicity. Its 575 x 575 mm dimensions suspended allow ceiling fast and An perfect integration control with box standard speeds

tiles.

integrated

installation while a low grille weight (2.5 kg) and an approximate height of 1 foot, makes handling easy. Quiet Comfort : Outfitted patented wing-shaped blades and a centrifugal fan design improves air-flow and considerably reduces noise levels. All components, from the coils to the condensate drain pump,are optimised to achieve exceptional overall performance. Patented Grille Design : Designed and patented by Carrier, the grille permits increased air throws without creating draughts for the occupants. The return air is filtered at the centre of the grille and can be distributed on four, three or two sides.

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Air Director System : Motorised louvers offer the option of six selectable air-flow directions, continuous air sweep or automatic positioning. Special outer-curving louvers ensure uniform cooling. Outdoor Unit : The outdoor unit houses the power-saving Carrier compressor that gives a wide range of comfort features, specially suited to Indian conditions - a wide operating voltage, extremely low noise, economical running and high durability. Technical Specifications CassetteINDOOR UNIT OUTDOOR UNIT Model Nominal cooling capacity (kW) (Btu/hr) Air flow speed (l/s)cu.ft/min Type Qty (Nos ) Fan Motor 40GKX024 6.7 23000 (250)530 1 51MSB024 24000 Permanent split capacitor 1 1/8(95) 920 7.97 1 1/5(150) 920 9.11 51MSCO48D 48000

Power (HP -Watts) 1/22(34) Hi-speed (rpm) 1020

Med-speed (rpm) 940 Low-Speed (rpm) 780 EER -

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Type Compressor Model Qty Nos Power Input (Watts) Piping couplings Filter Sound Pressure level dB"A" Height (mm) Net Dimensions Length (mm) Depth (mm) Net weight (Kg) Power Supply (V-ph-Hz)

84 Flare

Reciprocating NE 2100 BB 1 2800 2 5100 665 1030 435 110

Polypropylene net type 37 298 575 575 19 513 740 320 65

23010%-1-50 23010%-1-50

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CARRIER AIRCON LAUNCHES P-SERIESWith summer knocking on the doors, competition in the burgeoning air-conditioning has begun hotting up. Carrier Aircon, which claims to be the leader in India, today announced the launch of a new range of `P-series' high wall split room ACs and a `rotary' range of window ACs. The products are targeted at residential and small commercial application and are available in one to four-tonne capacity. P-series is equipped with a sound minimised air management system with an indoor unit cross flow fan and air discharge to provide quiet running. The rotary range has four variants with an improved compressor that consumes less electricity. The products are from its international range but have been adapted to Indian conditions, said company officials. Carrier plans to expand its retail presence in India to further strengthen its distribution and customer service network. They are focussing on capturing 30 per cent market share within two years and further consolidating their position in the Indian AC market.

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OBJECTIVE OF THE STUDY To study the Indian Air Conditioner Market with reference to

present trends and major players.

To do a market research through a Dealer survey to identify

the attributes that the buyer looks in the product (i.e. Air-conditioner)

To study and list the Products of Carrier Aircon and to find

out through Dealer survey, which of the new variants of AC has potential to be launched by the Company. To find out the areas of improvement for the company

through the dealer survey.

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RESEARCH METHODOLOGYResearch in common parlance refers to search for knowledge. One can also define research as a scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation. Some people consider it as a movement from the known to unknown. It is actually a voyage of discovery. We all possess the vital instinct of inquisitiveness for, when the unknown confronts us probe and attain full and fuller understanding of the unknown. This inquisitiveness is the mother of all knowledge of whatever the unknown, can be termed as research. Data Sources: Information has to be gathered through primary and secondary sources. Primary Data It consists of original information gathered for the specific purpose. This data is generally collected by observation and survey method. Secondary Data It consists of information that already exists somewhere having been collected for another purpose. They offer the advantage of low cost and ready availability.

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The sources for the data collection were: Primary data sources are: Questionnaire: A detailed questionnaire was given to dealers in Delhi to get the information on AC market in Delhi. Discussions and In-depth interviews of some Dealers in Delhi were conducted to get the information on AC.

Secondary data sources: Internet sites Company Annual Report Reference books

Sample size The sample size in total will include 25 dealers of air conditioners in New Delhi. All the collected data was analyzed and is presented in this report.

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LIMITATIONS OF THE RESEARCH

1. Time was the biggest constraint as all the interviews were to be conducted in person to get actual views of AC users. But all efforts were made to get information relevant to this project. 2. There may be some discrepancies in views as some people might give false information in the Questionnaire, as they might not be interested in filling the form.

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F INDING

AND

A NALYSIS

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PRICES OF DIFFERENT MODELS S. No. Model MRP Minimum customer price

Window air Conditioners 1. 2. 3. 4. 5. 6. 7. 1.0 tr Silencia 1.5 tr Optima d e qr 1.5 tr Optima d plus 1.5 tr Celesta d 1.5 tr Optima d 2.0 tr Optima D 2.0 tr Celesta D Hi - Wall Split Airconditioners 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 1.0 tr g x series 1.5 tr kx series 1.5 tr p s eries 1.5 tr Gx series 2.0 tr kx series 2.0 tr p series 2.0 tr Gx series 3.0 tr kx series 3.0 tr p series 3.0 tr kx series 4.0 tr kx series 4.0 tr P series 29490 32890 38690 41990 40590 46390 49290 63490 75490 80990 70000 77000 84000 26690 30090 34990 38990 37190 41690 45590 58990 70990 77190 66400 74390 80790 21490 19490 2490 22990 26990 23990 27990 18000 18490 19790 20990 20490 22890 25490

4.0 tr gx series

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Sierra infinity (ceiling /Floor) Mounted splits 21. 22. 23. 24. 25. 1.0 tr Dn 1.5 tr Dn 2.0 tr Dn 3.0 tr Dn 4.0 tr Dn Slim pack (floor standing splits) 26. 27. 2.0 tr s lim pack 3.0 tr slim pack Cassette (Celling splits) 28. 29. 30. 31. 1.5 tr cassettee 2.0 tr cassette 3.0 tr cassette 4.0 tr cassette 64900 71600 127990 118000 61600 67690 119000 114000 67490 69990 64490 68490 29490 36154 42077 62 990 67000 26690 32637 37981 58290 64500

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DEALERS OF AC'SS. No. Name And Address Vibhu Enterprises Sheikh Sarai-1, Ph 26011088 Ltimaate Aircond, 1023 Arjun Nagar, Safdarjung Enclave Ph 26173491 Happy Refrigeration Saket Ph 9810010326 Arkay Engineers, -12, Hari Kothi, Kirti Nagar, Ph 25939797 Mallaika, R-6 Nehr Enclave Kalkajee Ph. 9811142025 Swastic Enterprises Wz A1/1 Central Market, Vikaspuri Gems Weathermster 924/3 Faiz Rd Karol Bagh Olton A-5 Dsidc Complex Kirtinagar Ph 25461899 Bliss Aircon, 10-B, Block Bharat Nagar, New Friends Colony Ph 9810416515 Classic Aircon 39-B Bharat Nagar New Friends Colony Ph 981016515 Voltex Ircon, Karol Bagh 25736238 8c/10wea Ph Ph. Name Properitor Mr. Agrawal Of Product Handle Videocon Whirlpool LG, Voltas Annual Selling

1. 2.

Mukesh

Mr. Anil Kapoor

3. 4.

Mr. S Handari Mrs. Khurrana Mr. Chopra Mr. Vinay

Unil Ritu

LG, Videocon Assemling Own Acs Assemling Own Acs Assemling Own Acs Voltash Amtrex, Ichan Assemling Own Acs LG 200/Annum 200/Annum

5. 6.

Yogesh

150/Annum 100/Annum

7. 8. 9.

Mr. Ashu Aurora Mr. Pathak Mr. Salim

10.

Mr. Satish

Amtrex Ichban Whirlpool

11.

Mr. Sanjay Sood

12.

Dhruva Aircon Co., Sop No. 4 Sec-9, R.K. Puram Ph 26183476 Gupta Airconditioning Co., C-Main Market Vasant Vihar Ph 9811011519

Mr. Chauhan

LG Assembling Own Acs LG Whirlpool

13.

Mr. Sanjay Kumar

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14.

Kaul Engineers Shop No 7 Balmiki Mandir Mkt, Vikashpuri Ph 25537374 Global Airconditional, M212 Lodo Sarai Ph 9811072788 Harcomp H 18, Gr Een Park Main Ph 9810150724 Trade Link International, D137 Lajpat Nagar 1 Ph 8911388101 Pankaj Electronics Yusufsaraai Main Market Snowmax Refring 3, Jeevandeep Building Parliament Street Ph 9811013585 Surya Aircon, Wazirngr Mubarakpur 9811244007 1537, Kotla Ph

Mr. Kaul

Assembling Own Acs Assembling Own Acs Assembling Own Acs Hitachi Assembling Own Own Acs V-Con Videocon Amtrex

150 / Annum

15.

Mr. Vipin Malhotra

150/Annum

16.

Mr. Atul

17.

Mr. Vijay

18. 19.

Mr. R.D. Sharma

Assembling Own Acs

150/Annum

20.

Mr. Kochar

Sanjeev

LG

21.

Surya Erfrigation 22/2 Bhogal Road, Jungpura Ph 9810075774 Allied Tech D-8ndse-2 Cool Care 4/1 Singh Sabha Road Shakti Nagar Ph 9811061989 Saini Electronic Kamla Nagar, 23845151 Concept Aircon Co. Shahpur Jat 9811013678 49-D, Ph 34, Ph

Mr. Gagan

LG

22. 23.

Mr. Arwinderjeet Singh Mr. Vikash Taneja

HCL Computer LG Hitachi

24.

Mr. Raghbir Singh

LG Hitachi O Genral LG Mitsubshi

25.

Mr. A.K. Aggarwal

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1. Name of brand in which you deal in? DEALERS OF AC''SName of dealers 1. 2. 3. 4. 5. 6. 7. 8. 9. Vibhu enterprises Ultimate aircon Happy refrig Arkay engin Mallaika Swastic enter Gems weather Bolton Blton LG No Yes Yes No No No No No No Yes No Yes Hitachi No No No No No No No No No No No No Amtrex No Yes Yes No No No Yes No No No Yes No Voltas No Yes No No No No Yes No No No No Yes Ichban No No No No No No Yes No No No No No Ogeneral No No Yes No No No No No Yes Yes Yes No Videocon Yes No Yes No No No No No No No No No Whirlpool Yes No No No No No No No No Yes No No Samsung Yes No No No No No No No No No No No Assembling No No No Yes Yes Yes No No No No No Yes

10. Bliss aircon 11. Classic aircon 12. Voltesx ircon

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13. Dhruv aicon 14. Gupta aicon. co 15. Kaul engineers 16. Global aircon 17. Harcomp 18. Trade link int 19. Pankaj elec. 20. Snowmax refri 21. Surya aircon 22. Surya refrig. 23. Allied techno. 24. Cool care 25. Sainy electronic 26. Concept aircon. Co.

No Yes No No No No No No Yes Yes No Yes Yes Yes

No No No No Yes No No No No No No No Yes Yes

No No No No Yes Yes No No No No No No No No

No No No No No No No No No No No No No No

No No No No No No Yes No No No No No No No

No No No No No No No No No No No Yes No

No No No No Yes Yes No No No No No No No

Yes No No No No No No No No No No No No

No No No No No No No No No No No No No

Yes Yes Yes Yes Yes No Yes No No No No No No

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2. Which is the maximum selling brand from your showroom?

Brands Assembled LG Samsung O General Videocon Voltas

Responses 10 7 1 2 2 1

10 9 8 7 6 5 4 3 2 1 0Assembled LG Samsung O General Videocon Voltas Ichban

Ichban

1

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4.

How much AC's do you sale per annum? NIL 16 4 5

Less than 100 100-200 200-500 More than 500

16 14 12 10 8 6 4 2 0 Less than 100 100-200 200-500 More than 500

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5.

Which segment sells the best and most? 16 6 3

Window AC Hi-wall split AC Ducted

16 14 12 10 8 6 4 2 0 Window AC Hi-wall split AC Ducted Non-Ducted

Non-Ducted

NIL

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6.

In Window AC, which brands sells the most?

LG Hitachi Voltas Ichban O General Videocon Samsung Assembled

7 1 1 1 2 2 1 10

10 9 8 7 6 5 4 3 2 1 0LG Hitachi Ichban O General Samsung Voltas Videocon Assembled

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7.

In Hi-wall AC, which brands sells the most?

LG Daikin Voltas Assembled

12 3 3 7

12 10 8 6 4 2 0 LG Daikin Voltas Assembled

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8.

Which factors, you consider are most important factors in consumer purchase decision?

Quality of product Dealers margin Advertisement Warranty period

25 3 12 9

25

20

15

10

5

0 Quality of product Dealers m argin Advertisem ent Warranty period Consum ption of pow er

Consumption of power

15

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9.

In your showroom, which brands are mostly asked by the customers?

LG Voltas Ichban O General Videocon Samsung Assembled

5 17 2 3 4 7 Nil

18 16 14 12 10 8 6 4 2 0 LG Voltas Ichban O General Videocon Sam sung Assem bled

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9. Are you interested in dealing with Carrier Aircon? Yes No

No 24%

Yes 76%

19

6

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CONCLUSION With the fall in AC prices coupled with the increasing purchasing power of the middle class and the perception that an AC is no longer a luxury but a necessity, the demand for ACs has never been much better. According to industry sources, 70-80% of the ACs sold are used for essential industrial applications, hospitals and pharmaceuticals and not merely for comfort, as it is widely believed. A large part of the demand comes from commercial and industrial sector; even the govt. is a major customer. The demand for ACs is expected to grow at the rate of 25% per annum. In this segment, the demand for windows ACs, which currently accounts for 80% of the total demand is likely to reduce to 70% by year 2005. Split ACs which are not very popular now, are expected to pickup and account for 30% of the demand by 2005. This means that out of a total of 34 lakh units of ACs sold in 2005, around 23 lakh will be window ACs and the remaining 11 lakh units will be split types. Demand of ACs is expected to leap by 25%. Household segment, fastest growing segment with market share of 25% followed by industrial. According to a study conducted by Refrigeration and AC Manufacturers Association, India has a potential to emerge as one of the largest market in South East Asia. The survey of twenty five dealers in Delhi showed that Assembled ACs still rule the market because of a major price difference between assembled and branded ACs. LG follows the list and other players sharing the rest of the AC market. The reason for LG to be a success in this emerging market

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seems to be the price and advertisements that add to its sales. As per the dealers people go in for the quality of the product as far as purchase of AC is considered and also look for the power consumption before making the purchase decision. Dealers say that the features of all the branded ACs are almost similar and thus these two factors effect the buyers buying decision.

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RECOMMENDATIONSCarrier Aircon must try to improve its market share by using b