- AC penetration in India is extremely low at 8%, offering huge runway of growth - Key Beneficiaries ~ Amber, PG Electroplast, EPACK Durable , Voltas , Havells, Bluestar. - This is only one-fifth of the global average, indicating significant growth potential in the domestic RAC market - Among consumer durables, AC penetration is the lowest compared to washing machines (12%), refrigerators (33%), and televisions (65%) - Domestic RAC industry volumes stood at ~9.4 Mn units with an industry size of Rs 262 Bn in FY24 - Expected 20% CAGR growth over the next 3 years, reaching 15.7 Mn units ~ Rs 448 Bn by FY27 - Growth driven by improved penetration and rising per capita income - The PLI scheme and the ban on imports of refrigerant-filled ACs have reduced import dependence at both OEM and ODM levels - The domestic AC industry is dominated by 6-7 OEM players ~ Voltas, Havells, Daikin, LG, Hitachi, Blue Star Src ~ MOFSL