Carrier Midea, a joint venture between air-conditioning and refrigeration solutions brand Carrier and Chinese electrical appliance manufacturer Midea, has announced the commencement of operations at its new manufacturing facility located at Bawal, Haryana to strengthen the companyâ€™s foothold in the consumer durables market and pave the launch of Midea products in India.
Carrier Midea India claims this plant to be one of Indiaâ€™sÂ Â largest manufacturing facilities for air conditioners with an initial production capacity of seven lakh which will be expanded to 10 lakh units.
â€œThe Carrier Midea facility marks a new beginning that will help us expand our footprint in the country. With two brands – Carrier and Midea – Carrier Midea India will be a strong player in the consumer durables market and also delight our customers with best-in-class products and services. We are very excited to introduce Midea in India,â€ says, Krishan Sachdev, Managing Director, Carrier Midea India.
Carrier Media India will be using a dual brand strategy for the distribution of Carrier and Midea brand products in India. It will manufacture, distribute and service Carrier brand residential air conditioners, Midea residential air conditioners and home appliances products, which will include large and living appliances. Home ACs, both in window and split categories, will be launched separately under Midea and Carrier brands. The Midea brand of products will be launched in India before March.
Sachdev did not divulge any details about the marketing and communication strategy for Carrier Midea India maintaining that the same shall be disclosed only once the products are launched.
In terms of investment, it will be incurring investment to the tune of Rs 500 crore over a five to six year period, which will primarily be spent in the products and manufacturing space.
Sachdev did not reveal the size of the air conditioner market in India due to lack of availability of authentic data but mentioned that the last few years have witnessed a slowdown in this segment. He also pointed out the underlying potential and scope for this market in India owing to the low penetration levels. â€œThe penetration levels for air conditioners in India are three to four per cent while in China, it is around 45 per cent and Singapore is 70 per cent,â€ he appended.
â€œCarrier Midea India is a reflection of our long standing relationship with Carrier across the globe. We have come together in India with a long-term commitment, promise and major expansion plans. India is one of the fastest growing markets in the world and we are hopeful of delighting and transforming the Indian consumersâ€™ experience with our vast product solutions and performance driven products,â€ adds Paul Fang, Chairman, Midea Group.
Currently, the manufacturing facility will manufacture air conditioners but in due course of time it will also manufacture home appliances.
Carrier and Midea entered into a joint venture earlier this year to roll out products for the residential segment. Carrier has a 40 per cent equity stake in the JV while Midea has the rest. Carrier has also had a global joint venture with Toshiba and has been selling the Toshiba brand of air conditioners for several years.