The US-headquartered Lennox International Inc, a global leader in the HVACR (Heating, Ventilation, Air-conditioning and Refrigeration), industry today announced the inauguration of a new facility in Chennai to support the expansion of company’s global R&D and IT operations. Lennox India Technology Center (LITC), with a larger footprint in Chennai, will continue to develop innovative HVACR systems and solutions for their markets around the world.
LII currently markets products through its own sales offices in Asia and is investigating business models to further expand in the India market. LII is planning significant investments this year, to increase design and sales capabilities in India.
Speaking at the inauguration of the new facility, Mr. Todd Bluedorn, Chairman and Chief Executive Officer, LII, said, “India is a strategic market for us and one of the fastest growing markets globally for the HVACR industry. As some of our global customers, particularly in the Food Service and Retail sectors look to enter and expand their business in India, our growth opportunities here have significantly increased. We are currently exploring various business models to strengthen our business presence in India”.
Lennox began its Indian presence with the opening of a new technology center in Chennai in 2010. LITC primarily focuses on controls engineering, mechanical design and analysis, and information technology applications. The Lennox India Technology Center will grow by 50% and employ 300 engineering and information technology professionals by the end of 2014. “Technical talent at LITC has made outstanding contributions to LII’s new product and controls development and information technology platform implementations” said Prakash Bedapudi, Chief Technology Officer, LII.
The India Scenario
Reports suggest India’s US$ 750 billion retail market is set to double to US$ 1.5 trillion by 2018. Changing lifestyles / social trends, growth in Tier II cities are the major drivers for this growth, which triggered the entry of several international brands into the country. The commercial refrigeration segment, which is currently a US$ 110-130 million market, is expected to grow to a US$ 1 billon market by 2020. The Indian Government expects a US$ 21.9 billion investment in the food-processing infrastructure by 2015 (MOFPI report). Besides, government initiatives such as the creation of mega food parks, subsidies/ duty waivers for development of cold storage chains augurs well for the industry making India’s long-term growth story attractive. LII’s wide range of industry leading refrigeration and HVAC products are well suited for the India market presenting a unique opportunity for growth.