Amber Enterprises has seen a surge in demand for air conditioning units in India, leading to a significant increase in its share prices. The company expects to sell 1.30 crore air conditioners this year, compared to 95 lakh to a crore units sold last year. This growth is driven by an extended summer, which has boosted the refrigeration and air conditioning sector.
The company has reported an 82% year-on-year growth in consolidated revenue from operations, reaching Rs 1,684.70 crore. This growth is primarily fueled by the consumer durables segment, particularly the room air conditioner (RAC) market, which has seen a two-fold increase. The RAC industry is projected to achieve a 30% sales growth this year. Amber Enterprises is diversifying into more profitable segments and focusing on enhancing localization potential.
To position itself for future growth, the company is building a new manufacturing plant in Tamil Nadu to increase production capacity. It has also entered into a joint venture with a South Korean firm to produce printed circuit boards (PCBs), aiming to strengthen its supply chain and reduce dependency on imports. The PCB market in India is expected to grow significantly. The electronics division of Amber Enterprises has shown remarkable performance, with a 98% year-on-year revenue increase driven by orders from the defense sector and anti-dumping duties on Chinese PCBs. The company expects over 45% revenue growth in the Electronics Manufacturing Services (EMS) space for the year.
The air conditioning market in India is expected to grow substantially, and Amber Enterprises is well-positioned to capture a larger market share. The company's proactive approach in diversifying its product offerings and enhancing production capabilities will provide a competitive edge. With a focus on innovation and sustainability, Amber is set to play a pivotal role in shaping the future of the air conditioning industry in India.