As the regulatory environment is poised to change for the country’s air-conditioning market, Panasonic India has predicted that the cost of ACs will go up as companies upgrade their manufacturing units and products conforming to new standards.

Mohammed Hussian, Divisional Managing Director, Panasonic India, said: “Panasonic too is set to commission a new expanded facility of its manufacturing unit by November, to handle R410A refrigerant, considered to be environment friendly as it does not contain any chemicals that damage ozone. The company has invested about ₹15 crore at its manufacturing unit located in Jhajjar in Haryana, in addition to ₹300 crore it invested over the past few years.”

By the use of R410, according to Hussian, it is possible to design higher efficiency cooling systems with smaller units. With the Bureau of Efficiency, a Ministry of Power body, last month coming out with new star rating system Indian Seasonal Energy Efficiency Ratio for air-conditioners, which calls for investments in manufacturing plants, the cost of ACs is projected to go up, Hussain said.

Positive outlook

Referring to the Indian home AC industry, Hussain said, “It is expected to grow by about 15 per cent this year to reach 4.4 million units, and to 5 million units by 2017 against 3.6 million units sold last year. But with the consumers’ aspirations and affordability going up, this market is poised to grow significantly over the new few years.”

However, the changes in the regulatory environment, is set to lead to manufacturers taking to more efficient ACs powered by variable speed compressors or inverter ACs as against fixed speed ACs.

Since the inverter AC compressors turn off and on as per requirements, they are more energy efficient.

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