HVAC Market India

April 2011

Executive Summary
Market
HVAC market in India was worth INR x bn in 200- and has been growing at a CAGR of y% between 200--200It has immense potential owing to the boom in the construction and infrastructure sectors

Drivers

Challenges

Drivers & Challenges

Growth in construction industry Government investments Constant flow of foreign investments Geographical advantages

Real Estate- India is the most viable investment destination for real estate Retail Industry- Undergoing a structural change with increase in large format shopping malls Healthcare Sector- Expected to become an INR z bn industry by 20-Hospitality Sector- A lot of high-class hotel projects across India are in the pipeline SEZs- Government has approved a SEZs out of which many are still left to be completed Airports- Modernization of a number of metro and non-metro airports are underway Metro Rail- INR b tr will be invested in metro rail system in the next c years Market comprises of both domestic players and foreign players:

Sector-wise Demand

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Player 3
HVAC MARKET IN INDIA 2011.PPT

Huge establishment cost Developing energy efficiency

Competition
Player 1

Domestic Players Player 2 Player 4

Foreign Players Player 5 Player 6

Introduction Market Overview Drivers & Challenges Sector-wise Demand Competition

HVAC MARKET IN INDIA 2011.PPT

HVAC systems are fast becoming indispensable units in large building facilities in India
Overview
HVAC (Heating, Ventilating and Air Conditioning) refers to systems that perform processes designed to regulate room temperature, humidity and air flow in buildings, according to their acceptable ranges HVAC systems consume an important part of:
Architectural design and space allocations Building construction budget Buildings annual energy consumption

Types of HVAC
HVAC systems Central Systems
Systems using chilled water as a cooling medium and aircooled chillers and cooling towers to reject heat. Heating is usually generated from a boiler and piped hot water or steam. Distribution of cooled air is then handled by VAV (Variable Air Volume) units, CAV (Constant Air Volume) units or small unducted cooling units

HVAC Applications
Airports and SEZs Educational Facilities Multiplexes Government Facilities HVAC Hotels and Malls

Retail Outlets

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HVAC MARKET IN INDIA 2011.PPT

Packaged Systems

Healthcare Facilities Office Space

These systems are generally either rooftop systems or split systems. Cooling is delivered directly to the supply air through a refrigerant evaporative coil. Packaged units are designed as heat pumps and include a gas furnace or an electric resistive heating coil. Heat pumps operate utilizing the refrigeration system to pump heat from the outdoors into the building

Individual Systems
Smaller window or wall-mounted type units which are self contained and allow for more individual control. Cooling is handled inside and heat rejection outside

Source:

HVAC market in India has been showing consistent growth and is poised for more in the near future
HVAC Market- Overview
HVAC market in India has immense potential owing to the boom in the construction and infrastructure sectors Economic slow down since 200- had its effects on the HVAC market deterring its growth rate
INR bn

HVAC Market- Market Size and Growth

Segment 1 Segment 2

Though the market appears steady there are many innovations that need to be made to update its offerings

The market is mostly concentrated around airgeographical factors

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0 2004
HVAC MARKET IN INDIA 2011.PPT

a%

2005

2006

2007

2008

2009

HVAC Market- Market Segmentation(200-)

Segment 3
x%

conditioning than heating or ventilation due to its

Commercial air-conditioning constitutes the bulk of the market share

y% Segment 4
Source:

Drivers & Challenges Summary

Drivers
Growth in construction industry Government investments Constant flow of foreign investments Geographical advantages

Challenges
Huge establishment cost Developing efficient systems

HVAC MARKET IN INDIA 2011.PPT

Sector-wise Demand (2/7)

Retail Industry
Indian retail industry is undergoing a structural change with individual stores making way for large format shopping malls and hyper-markets It has been ranked as the most attractive country for international retail expansion in 200 HVAC market will benefit as the retail sector witnesses an upturn since it constitutes a major portion of the costs of such in-built environments

Retail Expansion Plans in India

Companies C1 C2 Expansion Plans Will invest INR U bn in 60 stores by 20- Invest ~INR V bn in the next p years in supermarkets and hyper marts

Retail Industry Market Size

Organized Market Unorganized Market INR bn x% y% t% 0 2010
Source:

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C3 C4 C5 mn sq feet 0
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To invest INR W bn in next q years Plans to have X hypermarkets by 20--

Open another Y stores by 20--

Organized Retail Market Space

Organized retail space is expected to grow substantially and drive the HVAC market in India

x% w%

s%

2013e

2010

2012e

Domestic Players in the Market (2/3)

Company Snapshot: Company 1
Corporate Information
Headquarters Founded Products Key People ---INR bn

Financial Performance
Total Revenue Net Profit INR bn

------Z President

Business Highlights

Player has secured two orders worth INR - bn for two airports in India, namely Kolkata's Netaji Subhas Chandra Bose International airport and Chennai International airport Has signed a joint venture with Company 2 of Region 2 for execution of electro-mechanical (MEP) projects Will form a joint venture company in Region 3 in partnership with Z Company for an electro-mechanical project Has acquired the entire stake of its Region 3 partner in joint venture firm Y Player has acquired a majority stake in X and made it their wholly-owned subsidiary

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0 2006 HVAC MARKET IN INDIA 2011.PPT

0 2007 2008 2009

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