Concepcion sees 15% growth in airconditioning sales this year

MANILA, Philippines - Cooling solutions provider Concepcion-Carrier Air Conditioning Co. (CCAC) expects its sales to grow by 15 to 16 percent this year from a year ago as construction projects and rising income of Filipinos are seen to boost demand for air-conditioning units.

CCAC chief executive officer Raul Joseph Concepcion said in a briefing yesterday the firm sees its sales growing by 15 to 16 percent this year from last year’s P4.6 billion as the country’s positive economic performance leads to stronger demand for cooling solutions.

“The positive economic growth in the Philippines provides CCAC with a great opportunity to expand its cooling solutions for both consumers and businesses,” he said.

Given the favorable economic conditions and strong investor confidence in the country, Concepcion said companies are expanding, leading to the construction of new offices, commercial and industrial spaces as well as creation of demand for more cooling solutions.

Apart from the demand coming from businesses, the rising incomes of Filipino families are likewise seen to result in higher demand for air-conditioners at homes.

“The penetration of air-conditioners in the Philippines is at 11 to 13 percent, which means there is still tremendous potential for growth,” Harold Pernikar, CCAC’s director for the consumer solutions group said in the same event.

He also said that as new energy-efficient cooling solutions which allow for lower electricity costs are offered in the market, more consumers are expected to purchase air-conditioners.

The bulk or 60 percent of the firm’s total sales is accounted for by residential consumers, while the balance comes from businesses.

With strong demand amid robust economic growth, Rajan Komarasu, CCAC’s director for the business solutions group said the company will be focusing on the domestic market for now.

“Export is an opportunity but we see strong domestic market so we want to focus on that,” he said.

To take advantage of the expected growth in demand here, Concepcion said the company intends to invest to improve its capability by increasing its workforce by 35 percent this year from the current count of 600 direct employees.

He said the company is likewise considering listing on the Philippine Stock Exchange.

“Because of the favorable economy, we are exploring it here...We don’t have details at this stage,” he said.

Formed in January 1998, CCAC is joint venture between homegrown air-conditioners, refrigerators and small appliances maker Concepcion Industries Inc. and US firm Carrier Corp. which manufactures and markets electrical appliances.

Currently, CCAC which is behind the brands Carrier, Condura and Kelvinator, corners about 35 to 40 percent of the local market.