New Delhi: Carrier Global is working at minimising price increases in India amid Iran-war linked supply disruptions and component inflation, the industrial air-conditioner and cooling solutions maker’s global chief executive David Gitlin said.
“We’ve done our best in India to try to control pricing … we’ve gone to great lengths to avoid it. I would say, our price increases outside of India have generally exceeded the price increases in India,” he said.
Gitlin said in many parts of the world, Carrier had to apply either pricing or surcharges that reflect increased input costs, with increases in raw materials such as copper, steel and aluminium, and fuel surcharges. “We’re not trying to improve our margins as a result of the input costs,” he said.
His comments come on the back of Carrier Global announcing an investing of $100 million in Sri City, Andhra Pradesh, to cater to domestic and global demand for industrial cooling solutions.
“When you look at the areas that we’re particularly interested in, it’s hard for me to believe that there’s going to be any year in the coming decade where we don’t grow at least double digits in India,” Gitlin said, adding that the India business could very easily double in the next few years.
He said the company’s share is relatively small on the retail side, and more sizable on the commercial business. Gitlin said the new facility in India would enable stepping up supplies to some of the most immediate areas of export, such as Africa and certain places in the Middle East.
However, amid global disruptions and maturing markets, some growth could taper off in international markets, he said. “This year, our growth at a Carrier level will actually be a bit flattish. The reason is that there’s a couple of very important markets to us that will have negative growth because of these (markets) going through a bit of a down cycle. So, for example, in the US, market started to decline a bit in the second half of last year, and we think it’ll be down this year.”
“We’ve done our best in India to try to control pricing … we’ve gone to great lengths to avoid it. I would say, our price increases outside of India have generally exceeded the price increases in India,” he said.
Gitlin said in many parts of the world, Carrier had to apply either pricing or surcharges that reflect increased input costs, with increases in raw materials such as copper, steel and aluminium, and fuel surcharges. “We’re not trying to improve our margins as a result of the input costs,” he said.
His comments come on the back of Carrier Global announcing an investing of $100 million in Sri City, Andhra Pradesh, to cater to domestic and global demand for industrial cooling solutions.
“When you look at the areas that we’re particularly interested in, it’s hard for me to believe that there’s going to be any year in the coming decade where we don’t grow at least double digits in India,” Gitlin said, adding that the India business could very easily double in the next few years.
He said the company’s share is relatively small on the retail side, and more sizable on the commercial business. Gitlin said the new facility in India would enable stepping up supplies to some of the most immediate areas of export, such as Africa and certain places in the Middle East.
However, amid global disruptions and maturing markets, some growth could taper off in international markets, he said. “This year, our growth at a Carrier level will actually be a bit flattish. The reason is that there’s a couple of very important markets to us that will have negative growth because of these (markets) going through a bit of a down cycle. So, for example, in the US, market started to decline a bit in the second half of last year, and we think it’ll be down this year.”
