Concepcion-Carrier on track to exceeding target

MANILA, Philippines - Concepcion-Carrier Airconditioning Co. (CCAC), the firm behind the Condura, Carrier and Kelvinator brands, is on track to exceed its sales target this year, company executives said.

Revenues might hit more than P5.3 billion on the back of strong economic conditions and new product offerings, the executives said.

“I think we have a big potential to surpass [the targets],” CCAC chief executive Raul Joseph Concepcion told reporters.

“First half was pretty good that we grew the business by more than 30 percent. Part of it was a function of hotter weather and economy is picking up,” Concepcion said.

Last year, CCAC posted P4 billion in total revenues, which are expected to rise further due to stronger demand.

The growth is also supported by product launches this year, said Alfie Rodriguez, director for channel sales of CCAC.

So far, the company has launched four new products, including the Carrier Optima, a smart airconditioner that provides energy savings similar to expensive inverters but at cheaper costs.

Concepcion said the new airconditioner consumes only 660 watts, lower than the 782 to 920 watts of competitors.

Furthermore, Concepcion is urging the Department of Energy to create a standard testing procedure to ensure the truthfulness of companies’ energy efficiency claims.

The company is planning to launch around 10 new products this year, Rodriguez said.

“We are trying to refresh about 25 percent of our product lineup every year,” Concepcion said.

“For the residential customer base, we are looking energy efficient products and then things like filtration health,” Concepcion said.

Innovations for the commercial segment, meanwhile, will focus on integrated solutions on airconditioning operations like remote and automatic cooling systems, Concepcion said.

To date, 70 percent of the revenues of CCAC are derived from residential sales, with the remaining 30 percent accounted for by the commercial segment.

Moving forward, Concepcion said the bigger part of the business will be driven by the commercial unit given renewed investor confidence, business process outsourcing and bigger shopping malls.

CCAC is a joint venture between homegrown airconditioners, refrigerators and small appliances maker Concepcion Industries Inc. and US firm Carrier Corp. Concepcion Industries, founded in December 1961, manufactures and markets electrical appliances.

To date, CCAC corners roughly 40 percent of the local market for airconditioners. The firm earlier said it is aiming to reach a share of 50-55 percent in the P10-billion local market for airconditioners.

Concepcion said the company is investing at least P100 million this year for the expansion of its refrigeration and airconditioning units.

To date, the company’s production plant in Laguna produces 300,000 to 400,000 airconditioners per year. The P700-million production complex started commercial operations in 1995.