3834
Industry Overview
An air conditioner is a machine designed to maintain a comfortable indoor environment by controlling temperature, humidity, air distribution, and air cleanliness. Its principal functions include cooling or heating rooms, regulating humidity through drying or humidifying, optimizing airflow through circulation and distribution, and cleaning air through filtration.
Air conditioning works by removing heat from indoor air through a refrigeration cycle involving refrigerant, evaporator coils, a compressor, a condenser, and an expansion device. Warm air passes over the evaporator coil, where heat and moisture are removed. The refrigerant then carries the absorbed heat to the compressor and condenser, where it is dissipated to the surroundings before the refrigerant returns through the expansion device to repeat the cycle.
A split air conditioner consists of separate indoor and outdoor units. The outdoor unit houses components such as the compressor, condenser, and expansion valve, while the indoor unit contains the evaporator or cooling coil, blower, and air filter. Split systems generally do not require ductwork and can be used to cool one or two rooms. The report also covers air-conditioner construction, components, energy efficiency, refrigerants, inverter technology, raw materials, manufacturing processes, quality control, plant layout, and suppliers.
Cost Estimation
| Plant Capacity | 333,3333 Nos |
|---|---|
| Land & Building (4000 sq.mt.) | Rs. 5.65 Cr |
| Plant & Machinery | Rs. 3.63 Cr |
| Working Capital for 2 Months | Rs. 33.68 Cr |
| Total Capital Investment | Rs. 43.56 Cr |
| Rate of Return | 48% |
| Break Even Point | 30% |
Content Index
- INTRODUCTION
- WORKING PRINCIPLE
- HERE’S A SIMPLIFIED DIAGRAM OF THE AIR-CONDITIONING PROCESS:
- SPLIT AIR CONDITIONER
- CONSTRUCTION
- PARTS OF SPLIT AIR-CONDITIONER:
- WALL MOUNTED INDOOR UNIT:
- 1) EVAPORATOR COIL OR THE COOLING COIL:
- 2) AIR FILTER:
- 3) COOLING FAN OR BLOWER:
- 4) DRAIN PIPE:
- 5) LOUVERS OR FINS:
- OUTDOOR UNIT
- REFRIGERANT PIPING OR TUBING
- ADVANTAGES
- USES AND APPLICATION
- B.I.S. SPECIFICATION
- ENERGY EFFICIENT AIR CONDITIONER
- OVERVIEW OF SUPER EFFICIENT AIR CONDITIONER
- GOING STRONG
- GROWTH STRATEGY
- NEW LAUNCHES
- MAKING A MARK
- INVERTER AIR CONDITIONER AND ITS COMPONENTS
- AC INDUCTION MOTOR
- DC BRUSHLESS MOTOR
- DC INVERTER CONTROL CIRCUITRY
- THE FIRST SECTION CONSISTS OF A DC CONVERTER
- THE SECOND SECTION BEING PFC OR POWER FACTOR CORRECTION
- THE THIRD SECTION IS THE INVERTER CONSISTING OF IGBT TRANSISTORS
- RAW MATERIALS
- DESIGN OF AIR CONDITIONER
- MARKET OVERVIEW OF AIR CONDITIONER IN INDIA
- ENERGY EFFICIENCY
- REFRIGERANTS
- STRATEGIES TO EXPAND CLIMATEFRIENDLY ROOM AC MARKET SHARE
- STRATEGY 1: OPPORTUNITIES THROUGH THE MONTREAL PROTOCOL
- HCFC PHASE OUT MANAGEMENT PLANS (HPMPS)
- THE HFC PHASE DOWN
- FLAMMABILITY & SAFETY STANDARDS
- THE ENERGY EFFICIENCY OPPORTUNITY
- SUMMARY
- STRATEGY 2: ENERGY EFFICIENCY AND LOW-GWP STANDARDS & LABELS
- UPDATING THE STAR RATING SCALE
- VARIABLE SPEED TECHNOLOGY
- TEST PROCEDURE
- THE BIG PICTURE
- SUMMARY
- STRATEGY 3: BULK PROCUREMENT PROGRAMS
- PROGRAMS IN INDIA
- SUMMARY
- STRATEGY 4: RAISING CONSUMER AWARENESS
- THE IMPORTANCE OF ENERGY LABELS
- REFRIGERANT AWARENESS
- REDUCING DEMAND
- SUMMARY
- STRATEGY 5: LOCALIZING SUPPLY CHAINS & RESEARCH & DEVELOPMENT
- INCREASING DOMESTIC COMPONENT MANUFACTURING
- RESEARCH & DEVELOPMENT
- SUMMARY
- STRATEGY 6: BRINGING IT ALL TOGETHER: NATIONAL COOLING ACTION PLANS
- SUMMARY
- CONCLUSION
- ROOM AIRCON INDUSTRY (INVERTER)
- INVERTER ACS TO ACCOUNT FOR 30% OF INDUSTRY VOLUMES IN FY18E AND 50% IN FY20E
- VOLTAS MAY NOT SEE MEANINGFUL GAINS EVEN WITH LG’S COMPLETE EXIT FROM FIXED-SPEED ACS
- HIGH COMPETITIVE INTENSITY
- BRAND, DISTRIBUTION, SERVICE CENTER NETWORK AND DEALER MARGINS ARE KEY
- SUMMER STRATEGIES OF AC MANUFACTURERS
- BLUE STAR – IMPRESSIVE LINE-UP OF AC MODELS; MARKET SHARE TARGET AT 13%
- VOLTAS – TARGETING 15-20% GROWTH THIS SUMMER SEASON
- LG INDIA – LOOKING FOR 30% GROWTH IN CY17
- DAIKIN INDIA – TARGET TO EXPAND REACH AND MARKET SHARE;DOUBLING CAPACITY AT NEEMRANA TO 1.2M UNITS
- PANASONIC – ‘A BETTER LIFE, A BETTER WORLD’ – AIMS FOR 30-35% GROWTH IN FY18
- GODREJ APPLIANCES – EYEING 20% SHARE IN INVERTER/5-STAR AC SEGMENT
- SAMSUNG – INVERTER RANGE LAUNCHED IN AFFORDABLE LUXURY SEGMENT
- VIDEOCON – TARGETS 13% SHARE AND TO INCREASE PRESENCE IN TIER 2/3 CITIES
- SWOT ANALYSIS
- DETAILED EXPORT DATA OF SPLIT AC
- DETAILED IMPORT DATA OF SPLIT AC
- MANUFACTURERS/SUPPLIERS OF SPLIT AC
- MANUFACTURING PROCESS OF AIR CONDITIONER
- CREATING ENCASEMENT PARTS FROM GALVANIZED SHEET METAL AND STRUCTURAL STEEL
- PUNCH PRESSING THE SHEET METAL FORMS
- CLEANING THE PARTS
- POWDER COATING
- BENDING THE TUBING FOR THE CONDENSER AND EVAPORATOR
- JOINING THE COPPER TUBING WITH THE ALUMINUM PLATES
- INSTALLING THE PUMP
- QUALITY CONTROL
- PROCESS FLOW CHART
- PRODUCTION PROCESS
- (1) PROCUREMENT OF RAW MATERIALS
- THE MANUFACTURING PROCESS
- (1) MAKING THE PARTS
- (A) CONSTRUCTING THE CASING, BRACKETS, AND OTHER SUPPORTS
- (B) PUNCH PRESSING THE SHEET METAL FORMS
- (C) CREATING ENCASEMENT PARTS FROM GALVANIZED SHEET METAL AND STRUCTURAL STEEL
- (D) CLEANING THE PARTS
- (E) POWDER COATING
- (F) FABRICATION OF COIL
- (G) FINISHING THE EVAPORATOR AND CONDENSER COILS
- (2) ASSEMBLY
- (3) CHARGING AND FINISHING
- (4) QUALITY CONTROL
- (A) PRODUCTION ROUTINE TESTS
- (I) GENERAL RUNNING TEST —
- (II) PRESSURE TEST OR LEAKAGE TEST —
- (III) INSULATION RESISTANCE TEST —
- (IV) HIGH VOLTAGE TEST —
- (V) PERFORMANCE TEST —
- (VI) LEAKAGE CURRENT TEST —
- (VII) EARTHING RESISTANCE TEST —
- (B) TYPE TESTS
- (6) MARKING
- PLANT LAYOUT
- SUPPLIERS OF RAW MATERIALS
- ALUMINIUM FIN STOCK FOIL
- COPPER TUBE
- M.S SHEETS
- ABS GRANULE
- BRAZZING WIRE
- MIG WELDING WIRE ELECTRODE
- REFRIGERANT GASES
- PICKLING CHEMICALS
- SUPPLIERS OF AC COMPRESSOR
- AIR CONDITIONER PARTS
- SUPPLIERS OF PLANT AND EQUIPMENTS
- SUPPLIERS OF FIN PRESS
- SUPPLIERS OF FIN DIE
- SUPPLIERS OF VERTICAL EXPANDER
- SUPPLIERS OF HAIRPIN BENDER
- CNC PRESS
- POWDER COATING MACHINE
- INJECTION MOLDING MACHINE
- SUPPLIERS OF IDU ASSEMBLING LINE
- SUPPLIERS OF BRAZING MACHINES
- SUPPLIERS OF REFRIGERANT CHARGING UNIT
- SUPPLIERS OF REFRIGERANT (HALIDE) LEAK DETECTOR
- ELECTRICAL MEASURING INSTRUMENTS
- SUPPLIERS OF POWER TRANSFORMER
- SUPPLIERS OF ELECTRICAL PANEL
- AIR POLLUTION CONTROL EQUIPMENTS
- AIR COMPRESSORS
- MATERIAL HANDLING EQUIPMENTS
- FIRE FIGHTING EQUIPMENTS
- SHOT BLASTING MACHINE
Appendix
- 01. PLANT ECONOMICS
- 02. LAND & BUILDING
- 03. PLANT AND MACHINERY
- 04. OTHER FIXED ASSESTS
- 05. FIXED CAPITAL
- 06. RAW MATERIAL
- 07. SALARY AND WAGES
- 08. UTILITIES AND OVERHEADS
- 09. TOTAL WORKING CAPITAL
- 10. TOTAL CAPITAL INVESTMENT
- 11. COST OF PRODUCTION
- 12. TURN OVER/ANNUM
- 13. BREAK EVEN POINT
- 14. RESOURCES FOR FINANCE
- 15. INSTALMENT PAYABLE IN 5 YEARS
- 16. DEPRECIATION CHART FOR 5 YEARS
- 17. PROFIT ANALYSIS FOR 5 YEARS
- 18. PROJECTED BALANCE SHEET FOR (5 YEARS)
Frequently Asked Questions
An air conditioner works by transferring heat from indoor air to the outside environment through a refrigeration cycle. Warm indoor air passes over the evaporator coil, where the refrigerant absorbs heat and moisture. The refrigerant then moves through the compressor and condenser, where the absorbed heat is released outdoors. An expansion device reduces the refrigerant pressure before it returns to the evaporator. This continuous cycle removes heat from the room and helps maintain the selected indoor temperature.
A split air conditioner primarily consists of an indoor unit and an outdoor unit. The indoor unit generally contains the evaporator or cooling coil, air filter, blower, drain pipe, and louvers or fins. The outdoor unit contains major refrigeration components such as the compressor, condenser, and expansion device. Refrigerant piping connects the indoor and outdoor sections and allows refrigerant to circulate between them during the cooling cycle.
The principal difference is the arrangement of the refrigeration components. A window air conditioner integrates its major components into a single housing, whereas a split air conditioner separates the indoor and outdoor units. In a split system, the indoor section contains the cooling coil and blower while the outdoor section houses the compressor and condenser. Split systems generally avoid the need for conventional ductwork and can provide a practical cooling arrangement for individual rooms or selected spaces.
Humidity control is important because comfortable indoor conditions depend on both temperature and moisture levels. As warm air passes over a sufficiently cold evaporator coil, moisture can condense from the air and be removed through the drainage system. This dehumidification process can make indoor conditions feel more comfortable and can help manage excessive moisture. Effective air conditioning therefore involves more than simply lowering temperature; it also involves controlling humidity and distributing treated air throughout the occupied space.
An inverter air conditioner uses variable-speed control to adjust compressor operation according to cooling demand. Instead of relying only on repeated full-speed starts and stops, inverter technology can vary compressor speed to maintain the desired indoor condition more steadily. The report discusses inverter AC components including the AC induction motor, DC brushless motor, DC inverter control circuitry, DC converter, PFC or power factor correction, and an inverter using IGBT transistors. These components work together to control electrical power and compressor operation.
Air conditioner manufacturing uses a combination of metals, polymers, electrical components, refrigerants, and process materials. The report identifies aluminium fin stock foil, copper tube, M.S sheets, ABS granule, brazing wire, MIG welding wire electrode, refrigerant gases, and pickling chemicals among the raw-material categories. The exact materials and specifications depend on the design and manufacturing requirements of the particular AC system. Proper material selection supports fabrication, heat transfer, structural strength, assembly, and product quality.
Air conditioner manufacturing can involve production routine tests and type tests to verify safety, performance, and product integrity. The report lists general running tests, pressure or leakage tests, insulation resistance tests, high voltage tests, performance tests, leakage current tests, and earthing resistance tests. Quality control also forms part of the manufacturing process after assembly and finishing. Such testing helps identify electrical, mechanical, refrigeration, leakage, and operational issues before finished units are released for use.
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