This MoU is the beginning of a long relationship to consolidate and expand India’s consumer electronics industry
New Delhi, 06th September 2021: The Refrigeration and Air-conditioning Manufacturers Association (RAMA) entered into a Memorandum of Understanding (MoU) with the India Cellular & Electronics Association (ICEA), which is the apex industry body representing the electronics and mobile industry in India, on 31st August 2021, at New Delhi.
The MoU is signed between Mr. Pankaj Mohindroo – Chairman, ICEA and Mr. Kanwal Jeet Jawa – President, RAMA. Mr. Jawa is a veteran in the air conditioning industry with over 37 years of experience, including with Carrier, Voltas / Fedders, and Daikin. In addition, Mr. Jawa is a thought leader, having been instrumental in the setting up of Daikin “Centers of Excellence”.
The objective of this MoU is to promote cooperation between ICEA and RAMA, with a view to demonstrate their irrefutable support towards nation building and strengthening of the economy while creating opportunities for growth and development of their respective industry players, all with the larger objective of promoting industrial development and the end-consumer market.
Mr. Kanwal Jeet Jawa, President, RAMA, said: Changing times call for better collaborations, as RAMA and ICEA are passionately involved in safeguarding the interests of our respective industries. We are constantly striving towards tiding over challenges faced by the industry, to which the present Government remains very supportive. We are deeply motivated to match the expectations of the Government & make a positive contribution towards achieving the mission – “Atma Nirbhar Bharat” as defined by our Hon’ble Prime Minister. RAMA’s charter has led to a creation of a new identity for airconditioning and refrigeration industry that now is ready to take full advantage of many government schemes & policy reforms.”
“I envisage this non-financial collaboration to go from strength to strength in order achieve the larger good at the structural & policy level. We must capitalise on our strengths to fuel the growth for of our industries, both in domestic as well as in international markets. RAMA – ICEA MoU will significantly strengthen the flagship programs of both the industry bodies. It will further enable the two sides to exchange information and ideas to increase competitive opportunities and space for collaboration. This will give an opportunity to the supply chains of both industries to collaborate and grow”, he said.
Mr. Pankaj Mohindroo, Chairman, ICEA, said, “It is a historic collaboration between the two industry bodies to strengthen the mutual relationship with a broader common aim and object of nation-building. The MoU will endeavor to provide us with respective members/industry players an opportunity to discuss, negotiate, and forge alliances or collaborations with each other, which will serve as a step in an increase of exports, providing competitive opportunities, and boosting the domestic sector amongst others. It has always remained our sincere desire to see a closer and more collaborative partnership approach between industry stakeholders in various aspects of the electronics ecosystem.
ICEA’s pioneering efforts have already led to the development of significant manufacturing growth in the electronics manufacturing ecosystem in India. ICEA entered the aircon arena just one year back and has been able to create a significant impact-one of them being the PLI instituted on the component supply chain which will make the industry very competitive. With this MoU, ICEA’s focus will also be on developing domestic manufacturing of the refrigeration and air conditioning (R&AC) industry in the country and developing world-class products for the domestic and export markets”.
The MoU will also facilitate and strengthen the exchange of information and ideas in the development of refrigeration and air conditioning technology in India and the manufacturing ecosystem around it, and to augment India’s place as an exporter and world leader in this space, moving towards the Government of India’s goals of Atmanirbhar Bharat and Make in India, Make for the World.
The annual R&AC industry market size was Rs. 16,000 crores (7 million in numbers) in FY 2019-20, of which 25% was imported. In the six months following the NTB’s kicking in, import dropped by 87%. Due to the pandemic, only 5.2 million units were sold last year. This year, the numbers are expected to be between 6 and 6.2 million because April-May (the high season) was partly lost due to the pandemic. The R&AC industry is expected to return to normal in FY 2022-23.
The two associations believe that we as a nation will reach an inflection point soon, where volumes will climb substantially. Indeed, it is the belief of both the associations that India should attempt a domestic market sale of 15 million units (Rs 37.5 – 40,000 crores) and export market of 35 million units (Rs. 75-80,000 crores) by 2025. Total revenue by 2025 will be Rs. 110,000 crores. This quantum jump in production will benefit the nation enormously.
The RAMA – ICEA MoU will significantly strengthen the flagship programs of both the industry bodies. It will further enable the two sides to exchange information and ideas to increase competitive opportunities and space for collaboration. This will give an opportunity to the supply chains of both industries to collaborate and grow.
