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Carrier Aircon loses cool, eyes market share - Views on News from Equitymaster
 
 
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  • Feb 18, 2000

    Carrier Aircon loses cool, eyes market share

    Air-conditioner (AC) major, Carrier Aircon has laid out plans to regain some of the market share that it forfeited last year.

    Carrier Aircon, 51% subsidiary of United Technologies, USA is among the leading manufacturers of air-conditioners in India.

    According to a news report in a leading financial daily, the company has outlined plans to restructure operations, revamp product profile and its production processes, enhance distribution network and streamline after sales- services. The company has added some key posts to its organisational chart to facilitate re-engineering and strategic planning. This was reported by a leading financial daily.

    Carrier Aircon's move to streamline the production process will follow a modular pattern, ensuring that minimum screws are employed. This will reduce raw material costs and have a positive impact on the company’s operating margins, which have been on the decline. It will allow the company to reduce prices if and when necessary, to compete effectively with the likes of Voltas. With an eye on after sales service and with regular technical inputs from its parent, Carrier Aircon will strive to maintain an edge over the competition.

    But the going will be far from easy for the company. Competitors are taking equally effective steps to streamline processes and spruce up the service network. In such a scenario, it looks like a long drawn out battle for the company to recoup lost market share.

     

     

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