The international leader in refrigeration and air conditioning systems, Carrier, plans to spend heavily in India. In an interview with CNBC-TV18, Carrier's Chairman and CEO, David Gitlin, announced the company's intention to invest an additional $800 million in India over the following five years.
Carrier, a company that has operated in India since 1986, runs a factory in Haryana. Over the last ten years, the corporation has made over one billion dollars in domestic investments.
The huge opportunity that India's poor air conditioning penetration presents is one of the main forces for this endeavour. Gitlin said, "Compared to more than 90% in nations like the US and Japan, just roughly 8% of residential homes in India have air conditioning today. Thus, we observe an exponential growth in the use of air conditioning in both household and commercial settings."
But Gitlin is also well aware of how HVAC systems affect the environment. He stressed, "As we grow air-conditioning exponentially, we have to make sure that we do that in a way that is friendly to the environment because 40% of carbon emissions come from buildings and 40 percent of that from HVAC systems."
Carrier reported $1.4 billion in free cash flows in 2022 in addition to $20.4 billion in sales, a 1% decline from the year before. With an eye towards 2023, the corporation wants to reach $22 billion in sales.
Gitlin said, "We are looking at double-digit growth in India," indicating that Carrier has high aspirations for India's contribution to their global operations. India's share of Carrier's sales is expected to rise rapidly." This positive attitude is supported by the possibility that India would become not only a sizable market but also a reservoir of outstanding talent across a range of industries.
Gitlin went on, "We have 4,500 individuals across the nation, and one of our most important worldwide growth vectors is India. Therefore, we have a great deal of confidence in India as a market and as a source of exceptional talent, whether it be in the manufacturing, digital or engineering sectors. Thus, we are entering India with great aggression."
Building a holistic ecosystem and bolstering its manufacturing presence are two other aspects of Carrier's expansion objectives in India. "In order to create an ecosystem, we plan to greatly increase our manufacturing presence in India. Over the next five years, we also plan to quadruple our supply chain expenditure in the nation. Thus, over the next few years, we anticipate seeing a couple thousand more people employed," Gitlin said.
With incentives totaling a significant Rs 6,238 crore, the Indian government launched the Production Linked Incentive (PLI) programme in an attempt to boost the country's air conditioner manufacturing industry.
Gitlin also conveyed gratitude for the Indian government's initiatives to create a robust supply chain and provide incentives for manufacturing. "Any incentive from the government to push towards renewable energy is always welcome," he stated.