AC Firms are receiving a boost from the commercial realty, which includes shopping malls and other various projects.
AC Firms have a close relation with the commercial realty. If you hear this for the first time you may think that this is something wrong or not correct. But this is true.
Analyzing the annual accruals of AC Firms, the experts have found that most of the air cooling companies are doing well when the office space demand is higher. For example, last year office space demand was down. The same period also witnessed a downturn in sales of ACs.
The AC manufactures like Blue Star India and others also were affected. In the same way, this year along with the growth in the demand for office space, the AC Firms are also seeing signs of improvement.
This is mostly we receive orders for centralizations mainly from the commercial sector, said a senior official at one of the top AC firms.
The residential sector also uses ACs at their homes. However in comparison to the huge response from the commercial sector, this is nothing but very minimal. Additionally, the housing units use smaller ACs and not bigger ones.
Comparing to the number of centralized offices and commercial malls, the centralized residential projects are very less. Thus the AC Firms will profit when there is better demand from the commercial sector.
This year is expected to be a good year for us, said the same official. He was indirectly referring to the report of Cushman & Wakefield who stated that the demand for commercial space in India is expected to reach 160 million square feet.
Report of DTZ India, RICS India Commercial Property Survey, etc. also point to a revival of office space demand. These reports would probably give more joy to the AC firms which are now affected by weak sales.