Which Companies Manufacture Air Conditioners in India?

Indian summers are incomplete without record-breaking heat, and as temperatures soar, the demand for air conditioners (ACs) rises in tandem.

India's geographic position, combined with accelerating global warming and environmental factors like deforestation, has led to increasingly hotter summers, turning ACs from a luxury into a necessity for countless households and businesses.

The year 2024 underscored this shift, with the country experiencing its longest-ever heat wave, intensifying the move towards residential ACs.

Rising aspirational demand, growing disposable incomes, and accessible financing options are all driving structural shifts, positioning air conditioners as essential fixtures in more Indian homes.

With the increase in demand here are the top AC manufacturing companies in India.

#1 Voltas

First on the list is Voltas.

Voltas, a Tata group company has been the undisputed market leader in the Room Air Conditioner category for more than a decade, consistently maintaining the No. 1 position, and has steadily maintained its lead over the competition.

With a market share of up to 25% in India's AC market, Voltas of the Tata group, founded in 1945, is presently in the first place.

The company is also known for producing India's first window air conditioner with DC-inverter-based variable-speed motors.

The firm sells both split and window models in India. It has a strong presence across India, the Middle East, Southeast Asia, and Africa.

The company has four manufacturing facilities in India, with a manufacturing capacity of 2.7 million (m) units.

It also has five state-of-the-art research and development (R&D) facilities, which are dedicated to new features and new product development.

Voltas has recorded a 35% sales growth to over two million units in FY24, becoming the first company in the domestic market to cross this mark.

The performance was attributed to a consistent demand for cooling products during the year, coupled with a strong offline and online distribution network, and new innovative launches.

Voltas Financial Snapshot (FY20-24)

(Rs m, Consolidated)	FY20	FY21	FY22	FY23	FY24
Revenue	76,581.00	75,558.00	79,345.00	94,988.00	124,812.00
Revenue Growth (%)	7.5	(-1.3)	5	19.7	31.4
Net Profit	5,211.00	5,288.00	5,060.00	1,362.00	2,481.00
Net Profit Margin (%)	6.8	7	6.4	1.4	2
Return on Equity (%)	12.2	10.6	9.2	2.5	4.3
Return on Capital Employed (%)	17.9	14.7	13.1	6.2	9

Source: Equitymaster

From FY20 to FY24, the company achieved a CAGR growth of 11.9% in sales, while its net profit saw a degrowth by 13.6%.

Additionally, Voltas has consistently maintained strong financial metrics, with an average return on equity (RoE) of 9.4% and a return on capital employed (RoCE) of 14.1%.

Voltas is now further expanding its retail and distribution network to cater to its growing product portfolio.

The company is looking at backward integration for certain products, including heat exchangers, cross-flow fans, and plastic components.

It also plans to focus on its international operations to expand its revenue and profits.

For more details, see the Voltas company fact sheet and quarterly results.

#2 Bluestars

Next on the list is Bluestar.

Bluestar, a popular household brand, manufactures air coolers, air conditioners, refrigerators, air purifiers, water purifiers, cold storage, and speciality products.

It also undertakes electro-mechanical projects such as central AC and ventilation projects, water projects, plumbing projects, electrical projects, and railway electrification.

In the commercial air conditioning space, Bluestar is a market leader for conventional and inverter ducted air conditioning systems and scroll chillers.

The company has 7 manufacturing facilities in India that have the capacity to produce over 300 plus models across 25 product lines.

It also has one R&D centre, which helps the company develop new products and simplify its manufacturing process.

Bluestar has a presence in over 3,900 towns, with 4,120 channel partners, and 1,251 service associates.

It also has a strong international presence across 18 countries across the Middle East, Africa, SAARC, and ASEAN regions, where it does both retail and commercial projects.

It now plans to strengthen its presence in Europe and the USA through existing and new product lines.

It is a market leader in commercial air conditioning and has a market share of 10% in online sales of air conditioners and water purifiers.

Further, the government in October 2024, received 38 applications from companies including Bluestar and others with a proposed investment of Rs 41.2 bn under the production-linked incentive (PLI) scheme for white goods in the third round, of which 20 are for air conditioner components and 18 for LED lights.

Bluestar Financial Snapshot (FY20-24)

(Rs m, Consolidated)	FY20	FY21	FY22	FY23	FY24
Revenue	53,602.00	42,636.00	60,641.00	79,773.00	96,854.00
Revenue Growth (%)	2.4	(-20.5)	42.2	31.6	21.4
Net Profit	1,407.00	1,007.00	1,680.00	4,007.00	4,143.00
Net Profit Margin (%)	2.6	2.4	2.8	5	4.3
Return on Equity (%)	18	11.4	16.5	30.1	15.9
Return on Capital Employed (%)	28.4	17.2	23.6	40.9	23.6

Source: Equitymaster

On the financial front, from FY20 to FY24, the company achieved a CAGR growth of 13.1% in sales, while its net profit saw a growth by 14.7%.

Additionally, it has consistently maintained strong financial metrics, with an average RoE of 18.4% and a RoCE of 26.7%.

Blue Star has rolled out a 3-year strategic plan to strengthen its core capabilities, acquire new capabilities, build new processes, and adopt innovative technologies.

This growth would be driven by factors such as low penetration of room ACs and the burgeoning middle-class consumers with high disposable incomes, especially from smaller tier 3, 4 & 5 markets.

The company expects its strong consumer insights of the domestic market coupled with its expertise, network of channel partners spread over 900 towns, and a strong brand equity, will place it in good stead to leverage the opportunities that scale will bring in.

For more details, see the Blue Star company fact sheet and quarterly results.

#3 Amber Enterprises

Next on the list is Amber Enterprises.

Amber Enterprises India Limited is an Indian company, established in the year 1990. It has become the most backward integrated market leader in the Indian room air conditioner (RAC) industry.

The company not only operates in the components space but also manufactures finished goods in the HVAC (Heating, Ventilation, and Air Conditioning) industry.

Amber Enterprises manufactures indoor and outdoor units, as well as window air conditioners.

Amber Enterprises has also gained significant traction in its electronics business, particularly due to the imposition of anti-dumping duties (ADD) on printed circuit boards (PCBs).

This has allowed the company to acquire new clients and expand its customer base.

Amber's mobility division also shows strong potential. As of 30 June 2024, the company's order book stands at Rs 20.7 billion (bn), and the management is optimistic about doubling sales within the next three years.

Amber Enterprises Financial Snapshot (FY20-24)

(Rs m, Consolidated)	FY20	FY21	FY22	FY23	FY24
Revenue	39,628.00	30,305.00	42,064.00	69,271.00	67,293.00
Revenue Growth (%)	44	(-23.5)	38.8	64.7	(-2.9)
Net Profit	1,641.00	833	1,113.00	1,638.00	1,395.00
Net Profit Margin (%)	4.1	2.7	2.6	2.4	2.1
Return on Equity (%)	14.5	5.2	6.5	8.8	7
Return on Capital Employed (%)	18.2	9.1	9.6	13.6	13.4

Source: Equitymaster

On the financial front, from FY20 to FY24, the company achieved a CAGR growth of 19.6% in sales, while its net profit saw a growth by 8%.

Additionally, it has consistently maintained strong financial metrics, with an average RoE of 8.4% and a RoCE of 12.8%.

The company expects a robust performance in FY25, with the AC industry likely to grow over 30% in volumes year-on-year.

Amber is confident in achieving sustained growth, projecting a compound annual growth rate (CAGR) of 17% over the next seven years.

This will be primarily driven by under-penetration in the Indian market and the rising temperatures, which are leading to higher demand for cooling solutions.

The company's strong position in the AC segment, coupled with favourable market trends, has played a key role in boosting its share price. Amber is capitalising on the growing demand, positioning itself to capture a larger market share in the years to come.

In addition, Amber Enterprises is focused on expanding its footprint in the defence sector. With a growing order book and an emphasis on local manufacturing, the company is poised to become a key player in this critical industry.

For more details, see the Amber Enterprises India company fact sheet and quarterly results.

#4 Epack Durable

Next on the list is Epack Durable Ltd.

Epack Durable was founded in 2002 and is a prominent player in the Indian manufacturing industry, specialising in air conditioners, expanded polystyrene (EPS) packaging, and pre-engineered buildings.

The company has achieved the milestone of being the largest processor of EPS packaging in India.

The company holds significant investments being the second-largest original design manufacturer (ODM) of RAC in India with a market share of 25% in domestically manufactured units.

The company manufactures room air conditioners (RACs) and other domestic appliances, including water dispensers, induction stoves, and mixer grinders.

It is India's second-largest ODM of RACs in terms of the number of units manufactured.

Epack Durables in October entered into a strategic manufacturing alliance with Hisense India to set up an advanced manufacturing facility in India to produce Hisense's range of air conditioners and home appliances using Hisense's proprietary technology & designs.

As part of this agreement, Epack Durable will invest in dedicated production lines for a variety of products, including air conditioners, washing machines, refrigerators, and other small domestic appliances.

Key components for residential air conditioning and small appliances will be produced using EPACK's existing infrastructure, optimising asset utilisation.

Furthermore, the strategic cooperation is projected to generate approximately US$ 1 bn in additional revenue for EPACK Durable and its subsidiary over the next five years.

The company expects nearly 50% revenue growth in the current financial year.

In the April-June 2024 period, the room air conditioner (RAC) segment, which contributes around 80% of the company's revenue, grew by 77%.

Epack Durables Financial Snapshot (FY22-24)

(Rs m, Consolidated)	FY22	FY23	FY24
Revenue	92,424.00	15,388.00	14,196.00
Revenue Growth (%)	22.5	66.5	(-7.8)
Net Profit	174	320	354
Net Profit Margin (%)	1.9	2.1	2.5
Return on Equity (%)	14.3	10.2	4
Return on Capital Employed (%)	30.7	17.7	9.3

Source: Equitymaster

On the financial front, from FY22 to FY24, the company achieved a CAGR growth of 24.5% in sales, while its net profit saw a growth by 65.6%.

Additionally, it has consistently maintained strong financial metrics, with an average RoE of 9.5% and a RoCE of 19.2%.

For more details, see the EPACK Durable ltd. company fact sheet and quarterly results.

#5 Johnson Controls-Hitachi

Next on the list is Johnson Controls-Hitachi. The company is an air conditioner manufacturer in India.

The company has a total installed capacity of 900,000 room air conditioners per annum (in a single shift). In addition to that the company also has the capacity to manufacture 120,000 tons of ductable units, 9,000 VRFs ODU, and 300 chillers per annum. The company is among the top air conditioning companies in India.

It manufactures a wide range of air conditioners, including room air conditioners, commercial air conditioners, chillers, and VRF systems. It also trades in refrigerators, air purifiers, and washing machines.

In July 2024, Bosch announced the acquisition of the residential and light commercial HVAC business from the JCI-Hitachi joint venture, a move that has significant implications for the company's operations in India.

According to the update, the divestment will include India's stake as part of a transaction valued at US$ 8.1 billion (bn), with Johnson Controls' consideration being approximately US$ 6.7 bn. This strategic acquisition is anticipated to close in about 12 months, bringing notable changes to the company's structure and focus.

Additionally, it generates a smaller revenue stream from high-end refrigerators, which are largely imported.

The company is also known for its popular aircon brand 'Hitachi Cooling and Heating' which has shown aggressive expansion plans.

Johnson Controls Hitachi Financial Snapshot (FY20-24)

(Rs m, Consolidated)	FY20	FY21	FY22	FY23	FY24
Revenue	21,974.00	16,465.00	21,590.00	23,844.00	19,187.00
Revenue Growth (%)	(-2.0)	(-25.1)	31.1	10.4	(-19.5)
Net Profit	835	331	161	(-821.0)	(-757.0)
Net Profit Margin (%)	3.8	2	0.7	(-3.4)	(-3.9)
Return on Equity (%)	12.1	4.66	2.2	(-12.5)	(-13.0)
Return on Capital Employed (%)	17.9	7.9	4.3	(-14.8)	-14.1

Source: Equitymaster

It has an average RoE of 3.8% and a RoCE of 0.2%.

Johnson Controls-Hitachi aims to reinforce its brand leadership in North India and capitalise on the promising growth opportunities in both residential and commercial segments.

For more details, see the Johnson Controls Hitachi company fact sheet and quarterly results.

#6 KRN Heat Exchanger and Refrigeration

Last on the list is KRN Heat Exchanger and Refrigeration.

Though not a direct manufacturer of air conditioners, the company produces heat exchangers and various components for the HVAC&R (heating, ventilation, air conditioning, and refrigeration) industry.

It manufactures heat exchangers in a range of shapes and sizes, designed to transfer thermal energy between fluids efficiently.

Additionally, it produces key parts like condenser and evaporator coils, which are essential components in air conditioning systems.

Some of KRN's customers include Daikin India, Schneider Electric, Voltas, Carrier, Eberspaecher, Kirloskar, and Blue Box.

The company also depends significantly on vendors from Malaysia, South Korea, Thailand, Vietnam, and China.

In recent years, the company has focused its efforts on export markets and has participated in global HVAC industry exhibitions and events.

The UAE, the US, and Europe are the prominent export destinations for the company.

KRN Heat Exchanger & Refrigeration Financial Snapshot (FY22-24)

(Rs m, Consolidated)	FY22	FY23	FY24
Revenue	1,561.00	2,475.00	3,083.00
Revenue Growth (%)	105.9	58.5	24.6
Net Profit	106	323	391
Net Profit Margin (%)	6.8	13.1	12.7
Return on Equity (%)	41.5	54.2	29.7
Return on Capital Employed (%)	452.2	63.8	41.3

Source: Equitymaster

On the financial front, from FY22 to FY24, the company achieved a CAGR growth of 59.6% in sales, while its net profit saw a growth by 151.2%.

Additionally, it has consistently maintained strong financial metrics, with an average RoE of 41.8% and a RoCE of 50.1%.

To broaden its market reach and expand its product portfolio, KRN plans to set up a new manufacturing facility at Neemrana, Alwar, for manufacturing bar and plate heat exchanger, oil cooling with blower, motor, and roll band evaporator.

The investment in forward integration is aimed at addressing the growing needs of railways for their electric engines, compressors manufacturers and refrigerator manufacturing companies.

For more details, see the KRN Heat Exchanger And Refrigeration Ltd. company factsheet and quarterly results.

Conclusion

The air-conditioning industry in India, currently valued at approximately Rs 275 bn (US$ 3.3 bn), is anticipated to double over the next four years, driven by rising demand across urban and rural markets.

The Indian HVAC&R (heating, ventilating, air conditioning, and refrigerating) sector is positioned for significant growth, primarily fuelled by low air conditioner penetration rates and a rapidly expanding middle-class consumer base with increasing disposable incomes, especially in tier 3, 4, and 5 cities.

The demand for air conditioners is also spurred by new housing developments and the expanding need for residential cooling solutions.

In 2024, India's air conditioner market's revenue is estimated to be US$ 5.88 bn with an annual growth projection of 16.56% CAGR from 2024 to 2029.

According to the Council on Energy, Environment, and Water, 97% of Indian households now have electricity, and while 93% still rely on fans, 2024 has witnessed an unprecedented surge in demand for air conditioning.

Air conditioner sales in India are projected to grow by 60% from March to July, a marked increase from the typical 25-30% growth seen in previous years. The International Energy Agency (IEA) projects that by 2050, home air conditioner ownership in India will increase nine-fold.

This growing demand places India's air conditioning manufacturing companies in a strong position to capture and expand their presence in the market.

Nevertheless, it is always prudent to conduct thorough research before making any investment decisions. Ensure investment aligns with your financial objectives and matches your risk tolerance level.

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