Wednesday, August 1, 2012

“Our aim is to have at least 70% localised products.”

As MD of Carrier India, Gaurang Pandya has unceasingly focused on embedding value propositions into his firm’s product offerings. But with sales of air conditioners dipping and the markets not looking up as expected, there is trepidation in the air on whether their industry will grow or not. Pandya feels strongly that it will, and answers B&E’s queries on his strategies

Gaurang Pandya has been at the helm of Carrier India – the air conditioning arm of United Technologies (UT) for just over an year. And in this short span of time, his sole focus has been to grow the AC business in line with other revenue arms of UT (it also makes Otis elevators and offers fire safety and electronic security solutions under UTC Fire and Security). “The idea is to grow the commerical AC market in tandem with the growth in the infrastructure and real estate sectors,” he says. Carrier ACs contribute roughly one-fourth of UT’s global revenue of over $52 billion (it’s a Fortune 500 company). In an exclusive interview with onkar pandey, Pandya, shares his company’s future plans and growth strategies, especially in the B2B segment.

B&E: AC sales have been adversely affected this season. How did the last fiscal pan out for you? What are your expectations from this fiscal year?
Gaurang Pandya (GP): The year 2010-11 was good for us in terms of overall business, and we see continued opportunity to grow. In the B2B segment, which is 30% of the overall AC market (roughly over $2 billion) we are the leader, and are confident of strongly growing in this segment, as AC penetration in India is still low at 3% as against more than 40% in a market like China. Currently 65% of our revenue comes from B2B.

B&E: Manufacturers are increasingly turning global to meet the specific needs of markets. How are you planning to improve your ranking and market share in the Indian market? How have you been keeping score in this regard?
GP: By tapping into Carrier’s rich global resources, cutting-edge technologies and local market knowledge, we have been bringing to India the latest products and technologies focusing on ozone protection, energy efficiency, and indoor air quality features. We tailor our products to meet the increasingly diverse needs of our customers. With our residential products – Window ACs & Hi Walls – we were one of the first to have star-labeled products, and in 2010, 100% of our residential products produced at Carrier India’s manufacturing facility were labeled as per the BEE (Bureau of Energy Efficiency) standards. Not only do our products meet local energy efficiency standards, our Gurgaon factory considers the impact to the environment with our methods of production, and has achieved a reduction of 57% in air emissions, 50% in energy consumption and 54% in water consumption since 2006. We have made significant investment in our Gurgaon plant to maximise localisation. Our aim is to have at least 70% localised products.

B&E: Manufacturing environment-friendly and energy-efficient products comes at a cost. How do you keep your sales ticking in a cost-conscious market like India?
GP: Carrier India’s domestic marketing strategy is based on the company’s global strategy of innovation and environmental sustainability. Carrier’s wide range of products (both for commerical and consumer needs) that include chillers, VRF, ducted units, cassettes, window and hi-wall ACs as well as commercial refrigeration and food transport equipment, have helped us expand our footprint in India. Our TG is high-end consumers, for whom the overall value of ownership plays a key role in the purchasing decision. For the commerical business we take part and promote industry events and trade fairs.

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