Johnson-Hitachi to set up export hub in Gujarat for air-conditioners

KOLKATA: Johnson Controls-Hitachi Air Conditioning will develop and manufacture air-conditioners in India for sale in markets in the Middle-East and Southeast Asia, expecting operations in the country to become one of its top three, global CEO Franz Cerwinka said.

The company will invest “tens of millions of dollars” in setting up the product development and manufacturing capabilities at its plant near Ahmedabad in Gujarat, Cerwinka said.

“We want to add engineering capabilities in India to support global business out of India. We also want to expand our manufacturing to export out of India,” he said.

Johnson Controls-Hitachi Air Conditioning is a joint venture of Johnson Controls and Hitachi Appliances of Japan. The company took over the Indian operations of Hitachi’s consumer electronics business.


Johnson Controls-Hitachi Air Conditioning India on Tuesday reported sales grew 20 per cent to Rs 1,977.3 crore in the year ended March from the previous year. Profit climbed 62 per cent to Rs 81crore.

Cerwinka said India is one of the most critical markets for the company and is a growth engine globally. The Hitachi brand is the third-largest by value in the room air-conditioner segment.


“The Indian operations contribute around 12 per cent to our global revenue. India has the potential to become one of the top three markets for the company since there is a lot of pent-up demand which will be generated in the mid-to-long term,” he said.

The company named old-timer Gurmeet Singh as managing director of the Indian operations in February, which Cerwinka said was an effort to localise operations and accelerate growth.

Singh said the company launched models starting at Rs 27,990 in the entry-level segment this year to compete with mainstream brands. He said it spent over Rs 30 crore this year on promotions of this model.