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 of operation, the corporation has made more than a billion dollars in domestic investments.
The tremendous opportunity given by India's limited air conditioning penetration is one of the main forces pushing this endeavour. As Gitlin put it, "In India, only approximately 8% of residential homes have air conditioning, but in the US and Japan, the percentage is over 90%. We thus witness an exponential development in the use of air conditioning in both business and household settings."
Although, Gitlin is also well aware of the way HVAC systems influence the environment. He emphasised "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 generated $20.4 billion in sales in 2022—a 1% decline from the year before—and $1.4 billion in free cash flows. Targeting $22 billion in revenue, the company's goal for 2023 is high.
Gitlin stated, "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 additionally a reservoir of outstanding talent across a range of industries.
Gitlin went on to elaborate: "We have 4,500 employees in the country and India is one of the most strategic growth vectors for us globally. So we are extremely bullish on India not only as a market but also as a source for phenomenal talent - whether it is manufacturing, digital talent or engineering talent. So we are coming in extremely aggressively into India."
In addition to growing its manufacturing footprint, Carrier has plans to create a holistic ecosystem as part of its growth into India. The goal is to create an ecosystem by greatly increasing our industrial presence throughout India. Over the following five years, we intend to increase our supply chain expenditure in the nation by a factor of four. In light of this, we anticipate adding a few thousand jobs over the next few years," Gitlin stated.
With incentives totalling 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 conditioning manufacturing industry.
Gitlin also conveyed gratitude for the initiatives taken by the Indian government to strengthen the industrial sector and create a reliable supply chain. "Any incentive from the government to push towards renewable energy is always welcome," he concluded.