Gujarat based Highly to enhance capacity to 2 million units by 2016

Ahmedabad

HIGHLY, the company in India in the HVAC Compressor segment with market share of over 35%, shall invest and enhance the annual capacity of its Changodar plant, near Ahmedabad to 2 million units to meet its growing export commitments as well as domestic requirement.

The company in a statement issued here said: The plant, situated near Ahmedabad in Gujarat, India, commenced production on 26th November, 2013 and the sales has grown to 400,000 units in 2015. The prospect of India HVAC industry look favorable with the growth of Indian economy and going by the forecast, by the end of Q3-2016, HIGHLY, expects to grow exponentially. HIGHLY was the first rotary compressor supplier to have invested in PM Modi’s dream of “Make in India” as the local production is driving the development of the Air Conditioners and AC compressor industry. As a part of its growth strategy, HIGHLY acknowledged the support of the Supply Partners in the last two years during the “Supply Partner Meet” held on the occasion. The Shanghai Hitachi Chairman and the senior management team met them personally and thanked everyone.

Talking about HIGHLY’s market share, Mr. Shen Jianfang, Chairman, HIGHLY said “By the year end of 2015, HIGHLY’s sales is expected to cross 400000 compressor units. The Year-on-Year increase of 130% compared to 2014 represents 10% of the market share. Considering 2015 is the 2nd year of operations only, HIGHLY has got very good operational results which has undoubtedly exceeded our expectation”.

“As a local rotary compressor manufacturer, we have the products across all categories to meet our customers’ requirement. Our lead time is much less compared to imports and other suppliers. This gives our customers a strategic advantage & edge in terms of a highly flexible production planning and JIT inventory. This reduction in lead time gives them a great value on the TCP, the total cost of purchase. 2nd strategic advantage is a complete risk covered against currency fluctuations as the payment is made in local currency. The 3rd strategic advantage is the speed to service local customer”, Mr Jianfang further added.

“The India AC market is expected to grow between 10-12% in 2016 and 2017. HIGHLY is ready to develop and promote the best products for the customers. Total sale in 2016 is expected to be 1.5 Million units with the local manufacturing capacity of 1 million units. Company is very optimistic about a significant market growth in 2017 & 2018 where the installed local capacity will be doubled to 2 million units. This capacity will meet requirement of compressor required in all segments including 12K models. Future of AC compressors is DC INV which will accelerate the growth and capture 30% market share by 2018. SHEC, the parent company is ready to share the solution & experience being one of the major players in China”, shared Mr. Shen Hong, Managing Director, HIGHLY on the projections for 2016 & 2017.

Mr. Sameer Bhargava, Director & Vice President, HIGHLY expressed satisfaction over the progress made in developing a capable supply base to meet the stringent purchase specifications. Today over 15% is localized and we expect to reach 30% by end of 2016. Some of the performing Supply Partners rewarded today have made substantial contribution in our localization journey he added.HIGHLY is the market leader in India in the segment with 35% of the total market share. The sales strategy of India plant is to meet India customers’ requirement, and side by side expand the footprint to Middle East and Southeast Asia markets. HIGHLY’s export target in 2016 is 50,000 to 1,00,000 in 2017.

HIGHLY is located in Ahmedabad City of Gujarat State, 25 kms away from the city with a convenient transport facility. Plant is constructed in 40000 sq. meter area with annual capacity of 1 million rotary Compressors for residential air conditioners.

– Corporate communication