[Digital Times, Kim Eun] There is a heating battle between Korean and Japanese appliances to take up the rapidly growing Indian air conditioner market. Daikin, the world`s No. 1 commercial air conditioner manufacturer, revealed that it would increase production by 1 million units a year by building a new plant in India. Samsung Electronics and LG Electronics, on the other hand, also countered that they intend to significantly increase production volume and product numbers.

The Indian air conditioner market is about KRW 7 trillion as of last year. However, it is the `Emerging Market` which grows by more than 6% every year.

Japan`s Daikin is expected to invest KRW 80 billion in the southern and western regions of India this year to construct a new air-conditioner factory according to the related industry on May 8. Daikin has set up a second plant in 2007 after investing USD 5.5 billion last year after establishing its first plant in India in 2007. Currently, Daikin produces about 1.7 million AC units annually in India. However, the new plant has set a goal of increasing production to 270 million by next year. The company also plans to raise its sales volume by lowering its price by procuring air conditioner parts locally. Daikin plans to build a new plant in India to serve as an export base not only for domestic demand but also for emerging markets such as Africa.

Meanwhile, Daikin is lagging behind Samsung Electronics and LG Electronics, which have a market share of around 5% with a 40% market share in the global commercial air conditioner market. However, in the poisonous Indian market they are being pushed by them. The current Indian air conditioner market is estimated KRW 7 trillion, which accounts for a small portion in the world air conditioner market of KRW 90 trillion. India, since 2010, has experienced an explosion of air conditioners every summer, In India, Samsung Electronics and LG Electronics have taken the lead with a market share of more than 50% with a localization strategy, and the gap with Daikin is more than 20%.

LG Electronics, which occupies the top spot in the Indian air conditioner market for Daikin`s attack, has decided to increase the number of air conditioners produced by two local plants from 1.2 million last year to 1.2 million last year and 1.5 million next year. The company also launched localized products such as air conditioners that chase mosquitoes with ultrasonic waves to reflect the fact that malaria and dengue fever are so damaging, as well as design products tailored to Indian consumer tastes.

Samsung Electronics, on the other hand, plans to increase commercial air conditioner products such as 4-way cassette without wind in the first half of this year. It is a strategy to purchase system air conditioners in India`s major public institutions and large commercial districts as an Indian specialty product. The company signed a supply contract to replace the entire outdoor unit in the NIBR complex commercial district near Mumbai airport with the DVM S 30HP dedicated to Samsung`s cooling at the end of last year. It also supplied a large amount of `System air conditioner 360` to India Mint.

An industry expert stated, "Japanese companies are pursuing the same localization strategy with Samsung and LG in India, so air-conditioning competition between Korea and Japanese home appliances will become more intense."


By Kim Eun silverkim@


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