Motilal Oswal: Indian AC Industry - It’s Time To Scale Up  
An employee inspects the indoor unit of a split system air conditioner on an assembly line in a factory in Rajasthan (Photographer Prashanth Vishwanathan/Bloomberg)

Motilal Oswal: Indian AC Industry - It’s Time To Scale Up  

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Motilal Oswal Report

The Government of India released a notification dated October 15, 2020 to effectively ban the import of ready-to-install air conditioners.

Here are our thoughts on the development -

While some action on restrictions on AC imports was anticipated, the total ban appears to be a stricter step.

Import duty hikes were expected on components and finished goods, moving toward gradual import substitution.

We view this as a clear signal to the industry to scale up Make in India efforts. We expect more announcements to curb loopholes such as unbundling.

This may be a near-term disruption for the industry, but a very good move over the longer term from the industry evolution perspective.

Click on the attachment to read the full report:

Motilal Oswal Consumer Durables Sector Update.pdf


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