Carrier Airconditioning & Refrigeration Ltd Unlisted Shares

Are you looking to invest in a globally recognized brand with a dominant position in India’s growing HVACR (Heating, Ventilating, Air Conditioning, and Refrigeration) market? Carrier India , part of the US-based Carrier Global Corporation, is a name synonymous with innovation and quality. With a history in India dating back to 1936, a state-of-the-art manufacturing facility in Gurgaon, and a pan-India network of over 800 partners, Carrier represents a rare opportunity to own a piece of a global industry leader in the unlisted space.

Company Overview: A Legacy of Cooling India

• Indian Legacy: Carrier’s India journey began in 1936 with the installation of the nation’s first air-conditioning system at the iconic Rambagh Palace in Jaipur.

• Formal Incorporation: Carrier India was officially established in 1986.

• Manufacturing Hub: In 1988 , the company set up its premier manufacturing unit in Gurgaon, Haryana – a sprawling 19-acre facility.

• Global Parent: Carrier Global Corporation (Delaware, USA) holds a commanding 96.5% stake in the Indian entity (as of March 31, 2023), providing immense financial strength and technological backing.

Global Footprint of Parent Company

Carrier is not just an Indian success story; it’s a global powerhouse:

• 51 factories worldwide

• 39 state-of-the-art research & design centers

• 53,000+ employees globally

• Presence in over 180 countries

This global network ensures that Carrier India benefits from cutting-edge technology, rigorous R&D, and world-class best practices.

State-of-the-Art Manufacturing in India

The Gurgaon facility is a testament to Carrier’s commitment to quality and innovation. It houses:

• An automated manufacturing unit

• A dedicated Research & Development (R&D) Center

• A cutting-edge quality clinic

This facility manufactures a wide array of products for the Indian market, including:

• Cassettes

• Ducted splits

• Package units

• Air- and water-cooled screw chillers

• Air- and water-cooled reciprocating chillers

• Fan coil units

• Air handling units

• Refrigeration products

• Fire & security products

Commitment to Safety: A World-Class Record

Carrier India’s commitment to Environment, Health & Safety (EH&S) is exemplary.

• The Gurgaon facility has clocked over 17 million man hours without a single lost workday incident. This is a remarkable achievement and speaks volumes about the company’s operational excellence and care for its workforce.

Pan-India Presence

Carrier India ensures nationwide coverage through a robust network:

• 14 sales and service offices

• Over 800 sales and service channel partners

This extensive reach allows Carrier to serve customers across the country, from metro cities to emerging towns.

Key Business Segments: Diversified Revenue Streams

Carrier India’s business is diversified across five key verticals, ensuring stability and multiple growth drivers.

1. Light Commercial Air Conditioning (LC)

This segment is primarily driven by ducted and cassette products.

• Ducted Segment: Since the 2018 launch of the inverter ducted product, this energy-efficient range has garnered widespread acclaim.

• Cassette Segment: The BEE-labeled Cassette range is gaining strong momentum. With energy efficiency becoming a key buying criterion, demand for Inverter Cassettes is surging.

2. Commercial Air Conditioning

This vertical has seen notable growth, driven by locally manufactured screw chillers and deeper market penetration, especially in high-growth sectors like pharmaceuticals and industry.

3. Commercial Refrigeration

Despite challenges in the food retail sector, this business has shown steady growth. Key drivers include:

• Non-food retail markets

• Cold room projects

• Niche segments like IQF (Individual Quick Freezing) and mushroom growth chambers

4. Service Business

Carrier’s service business has grown consistently year-on-year, capturing both multinational corporations and top local clients. Their energy-saving solutions have particularly gained attention, helping clients reduce operational costs.

5. Transicold (Cold Chain)

Carrier Transicold India is at the forefront of establishing robust cold chains in India.

• Market Position: Dominant supplier of truck refrigeration systems.

• Network: Backed by a sprawling sales and service network spanning over 60 service centers across India.

Financial Performance: Strong Growth Trajectory

Carrier India has delivered impressive financial results, reflecting its strong market position and operational efficiency.

This sharp revenue growth demonstrates the strong demand for Carrier’s products across its diversified business segments.

Carrier Unlisted Share Price Movement

The strong financial performance has been reflected in the unlisted share price.

• Price Appreciation: ~14% increase over the past year, mirroring the company’s revenue growth and positive market sentiment.

• Ownership: With 96.5% held by Carrier Delaware, the floating stock in the unlisted market is limited, which can influence price discovery.

Key Investment Highlights

1. Global Leadership: Part of Carrier Global Corporation, a world leader in HVACR, fire, and security systems.

2. Unmatched Legacy: Operating in India since 1936 – a trusted brand with deep market penetration.

3. Diversified Business Model: Presence across light commercial, commercial, refrigeration, service, and cold chain segments.

4. Strong Financials: 37.5% revenue growth in FY23, demonstrating strong demand and execution.

5. World-Class Manufacturing: 19-acre automated facility in Gurgaon with in-house R&D and quality clinic.

6. Pan-India Network: 14 offices and 800+ channel partners ensure nationwide reach.

7. Safety Excellence: 17 million+ man hours without a lost workday incident – a testament to operational rigor.

8. Sector Tailwinds: Benefiting from India’s growing infrastructure, pharmaceutical industry expansion, and increasing demand for energy-efficient cooling solutions.

Risks to Consider

1. Majority Ownership: With 96.5% held by the parent, minority shareholder influence is limited.

2. Competition: Faces intense competition from other global and domestic HVACR players in India (Daikin, Voltas, Blue Star, etc.).

3. Economic Sensitivity: Demand for HVAC products is linked to real estate, commercial construction, and industrial capex cycles.

4. Raw Material Costs: Subject to fluctuations in commodity prices (copper, steel, aluminum).

5. Unlisted Liquidity: As an unlisted company with very low public float, liquidity in the shares may be limited.

The Opportunity: Own a Piece of a Global HVAC Icon

Carrier India offers a unique investment opportunity – a chance to own shares in a company that combines a 1936 legacy, a global parent, a diversified business model, and strong financial performance. As India’s economy grows and demand for energy-efficient cooling and cold chain solutions explodes, Carrier is perfectly positioned to benefit.

Ready to Add a Global HVAC Leader to Your Portfolio?

Buy Unlisted Shares of Carrier India Ltd exclusively through Unlisted Network.

Invest in a legacy of innovation and cooling excellence.