AC manufacturers commit to export 50% of sales

26 Feb 2021 CW Staff

The association also said that the segment might increase domestic value addition in room ACs to 75%, from the current 25%.

The industry's commitment to the NITI Aayog and the Department for Promotion of Industry and Internal Trade (DPIIT) comes in the wake of the government's production linked incentive (PLI) scheme.

As we reported earlier, the announcement for this sector was made in November, with an outlay of Rs 6,238 crore for white goods—which comprise ACs and light emitting diodes (LEDs). The government is finalising the final modalities of the scheme after its meetings with stakeholders.

4th Indian Cement Review Conference 2021

17-18 March

Click for event info

As part of the announcement, the Centre has earmarked over Rs 1.46 trillion for ten sectors under the scheme. The government has noted that its aim for the AC industry is two pronged:

To have a very high potential of domestic value addition and to make these products globally competitive. It says the PLI scheme for this segment will lead to more domestic manufacturing and increase exports.

Currently, India has only 0.5% of the global export market of room ACs, in terms of volume. This could go up to 10% by 2025 if the PLI scheme takes off. While 75% of the world's room AC manufacturing takes place in China, 75% of the global demand is also met by China and Thailand.

India imports 30% of the total value of sales of finished ACs from China. A striking contrast can be noted by the fact that China produced over 100 million room ACs in 2019, while India made a mere 7 million in the same year.

The industry got much less than what it had asked the nodal ministry as outlay under the PLI scheme of Rs 20,000 crore. Now it has to share a smaller outlay with LED manufacturers as well.

Image: Under the PLI scheme, the approved financial outlay is for a period of five years.

Also read: Blue Star to intensify commercial refrigeration ops

Also read: Moving out of China? India among best alternatives

Your next big infra connection is waiting at RAHSTA 2025 – Asia’s Biggest Roads & Highways Expo, Jio World Convention Centre, Mumbai. Don’t miss out!

The Refrigeration and Air Conditioning Manufacturers Association of India (RAMA) has committed to the government an export target of 50% of its sales of over Rs 1 trillion in the next five years from air conditioners (ACs). The association also said that the segment might increase domestic value addition in room ACs to 75%, from the current 25%. The industry's commitment to the NITI Aayog and the Department for Promotion of Industry and Internal Trade (DPIIT) comes in the wake of the government's production linked incentive (PLI) scheme. As we reported earlier, the announcement for this sector was made in November, with an outlay of Rs 6,238 crore for white goods—which comprise ACs and light emitting diodes (LEDs). The government is finalising the final modalities of the scheme after its meetings with stakeholders.4th Indian Cement Review Conference 202117-18 March Click for event info As part of the announcement, the Centre has earmarked over Rs 1.46 trillion for ten sectors under the scheme. The government has noted that its aim for the AC industry is two pronged: To have a very high potential of domestic value addition and to make these products globally competitive. It says the PLI scheme for this segment will lead to more domestic manufacturing and increase exports. Currently, India has only 0.5% of the global export market of room ACs, in terms of volume. This could go up to 10% by 2025 if the PLI scheme takes off. While 75% of the world's room AC manufacturing takes place in China, 75% of the global demand is also met by China and Thailand. India imports 30% of the total value of sales of finished ACs from China. A striking contrast can be noted by the fact that China produced over 100 million room ACs in 2019, while India made a mere 7 million in the same year. The industry got much less than what it had asked the nodal ministry as outlay under the PLI scheme of Rs 20,000 crore. Now it has to share a smaller outlay with LED manufacturers as well. Image: Under the PLI scheme, the approved financial outlay is for a period of five years.Also read: Blue Star to intensify commercial refrigeration ops Also read: Moving out of China? India among best alternatives

Building Material

08 Sep 2025

Ramco Cements Wins AI Awards 2025 for Innovative AI Solutions

The Ramco Cements Limited has been honoured with the AI Awards 2025 by the Confederation of Indian Industry (CII) under the Innovative Category – Excellence in Best AI Solution Showcase.The award recognises Ramco Cements’ in-house AI-powered BInGO (IDB) Business Intelligence platform, designed to transform how organisations access, analyse, and act on data by delivering real-time, AI-driven insights.The AI Awards 2025 jury, chaired by industry leaders, acknowledged Ramco’s pioneering approach to digital transformation and AI adoption in the cement and construction sector.Key highlights o..

Building Material

08 Sep 2025

Nuvoco Vistas Unveils Expansion Plans in the East

Nuvoco Vistas Corp, India’s trusted building materials company and the country’s fifth-largest cement player by capacity, has announced significant expansion plans to strengthen its presence in the East. The strategy focuses on sustainable growth, wider market reach, and enhanced competitiveness.The company will invest approximately Rs 2 billion to increase cement grinding capacity by 4 MMTPA in the East by FY 2026-27. This includes setting up a new mill at the Arasmeta Cement Plant and executing debottlenecking projects at Jojobera, Panagarh, and Odisha plants. The phased expansion will a..

Infrastructure Urban

08 Sep 2025

VECV and Jio-bp Pulse Partner to Expand EV Charging for Commercial Vehicles

VE Commercial Vehicles (VECV), a joint venture between the Volvo Group and Eicher Motors, has signed a Memorandum of Understanding (MoU) with Jio-bp pulse to strengthen EV charging infrastructure for its electric commercial vehicle customers. The partnership will give all Eicher Trucks and Buses’ EV customers seamless access to Jio-bp’s network of over 6,000 charging points, India’s largest DC fast-charging footprint, spanning cities, highways, and purpose-built EV hubs designed for all types of commercial vehicles.Jio-bp, the fuel retail joint venture of Reliance Industries and bp, oper..