Havells India, the parent company of the Lloyd brand, has announced plans to invest Rs 50-60 crore in expanding its air conditioner manufacturing capacity. This strategic investment will enhance production capabilities at its two plants located in Ghiloth and Sricity. Funded through internal accruals, the expansion is slated for completion by the fourth quarter of the current financial year.
Currently, the Ghiloth plant produces 900,000 units annually, while the Sricity unit has a production capacity of 1.12 million units. With the planned investment, the combined production capacity at both plants is set to increase to 1.5 million units per annum.
Commitment to Market Demand
“With the growing demand for our air conditioners, we are committed to enhancing our production capabilities to meet the market needs. This investment will not only boost our capacity but also reinforce our position as a leading player in the consumer durables sector,” said Alok Tickoo, Executive Vice President of Lloyd. He further added, “We are confident that these enhancements will enable us to serve our customers better and drive further growth for Lloyd and Havells India.”
In addition to ramping up domestic production, Havells India is also focusing on expanding its export markets for residential air conditioners. This move is part of the company’s broader strategy to capitalize on the increasing global demand for air conditioning solutions.
Market-Wide Capacity Expansion
The relentless heatwave conditions have spurred a significant rise in air conditioner sales, even in emerging markets such as Pune and Bengaluru. This surge in demand has prompted several industry players to increase their production capacities.
Earlier this year, Blue Star announced an investment of approximately Rs 250 crore to expand its capacity at the Sricity plant by an additional 300,000 units. The company projected a 25% growth in sales of residential air conditioners for the June quarter.
Industry Outlook
The increased investments by major manufacturers underscore the robust growth potential in the air conditioner market. As temperatures continue to rise, the demand for efficient cooling solutions is expected to remain strong, driving further investments and innovations in the sector.