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  

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

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

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.