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Johnson Controls-Hitachi Air Conditioning India Ltd.

johnson controls hitachi

In this article, we will explore Johnson Controls-Hitachi Air Conditioning India Ltd.. fundamentally, understand its business model and industry, and determine whether it’s a good investment fit for you.

Johnson Controls-Hitachi Air Conditioning India Ltd.

Johnson Controls-Hitachi Air Conditioning India Ltd. (JCHAC) is a leading manufacturer and distributor of room air conditioners in India. Its products include split air conditioners, window air conditioners, and inverter air conditioners. JCHAC commands a strong brand presence and a nationwide distribution network too. 

It holds a substantial market share in the Indian air conditioning industry, competing with other major players like Voltas, Daikin, and Blue Star.

Currently, the company has 600+ exclusive sales and service partners, ~100 exclusive showrooms, ~10,000 sales points, and more than 1,500 other service points. The company has already established direct business operations in the SAARC countries (Nepal, Bhutan, Bangladesh, Sri Lanka, and Maldives).

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Is the consumer durables industry a good sector to invest in?

India is the fifth largest consumer durables market globally, with a market size of US$ 21.18 billion in 2023. Not only is the sector huge, but it is also growing at phenomenal speeds, with experts estimating that it can grow at 12-14% CAGR over the next five years.

Rising disposable incomes, increasing urbanisation, and a growing middle class are fueling demand for consumer durables like air conditioners, which brings more business to Johnson Controls-Hitachi Air Conditioning India Ltd.

Within the consumer durables segment, consumer electronics is the largest with more than 50% of the total market share. With rising consumer awareness, a large working population, and the number of time-starved professionals on the rise, the demand for smart and connected appliances is rapidly increasing.

Usually, leading consumer durables companies in India have strong financials, including healthy profits, low debt levels, and attractive dividend yields, which generally make them good investments.

Who are JCHAC’s competitors in the power sector?

Here are some of JCHAC’s competitors:

  • Dixon Technologies (India) Ltd
  • Voltas Ltd
  • Blue Star Ltd

History of Johnson Controls-Hitachi Air Conditioning India Ltd.

The roots of JCHAC stretch back to 1998, when Japanese company Hitachi Ltd. established Hitachi Air Conditioning India Ltd. as a subsidiary. They wanted to tap into the burgeoning Indian air conditioning market. In 2004, they acquired the air conditioning business of Ahmedabad-based Gujarat Narmada Valley Fertilisers & Chemicals Ltd., marking their entry into the industrial air conditioning segment also.

It was in 2015 that Johnson Controls International PLC acquired Hitachi Air Conditioning India Ltd. This acquisition was followed by a rebranding, establishing the current Johnson Controls-Hitachi Air Conditioning India Ltd. The merger leveraged the combined expertise and resources of two industry giants, propelling JCHAC to new heights.

In 2010, the company restructured their debt, improving their financial position and paving the way for future investments.

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Investing in JCHAC


  • The company controls a strong brand in India in the air conditioning segment of consumer durable products
  • They control a huge manufacturing facility that has a capacity for 900,000 room air conditioners p.a, 120,000 tons of ductable units, 9,000 VRFs ODUs and 300 chillers units p.a.


  • The company is one of the lowest performers amongst comparables in the industry
  • It seems to be overvalued at this time, trading at more than 5 times its book value
  • Financials have also not been improving for a long time, and neither has profitability
  • P/E ratio is currently negative, indicating a negative net income number, while the industry P/E stands at 71
  • Revenue growth has been lagging behind compared to the industry at 1.7%
  • Market share has also decreased in the last 5 years from 4.4% to less than 3.1%

The finances

Market cap₹3,166 cr
Book value₹207
Dividend Yield0.00%
Face value₹10.00

Shareholding pattern of JCHAC

Here’s the shareholding pattern of Titan:

The company’s holdings percentages don’t look very good, especially when compared to changes in the last year. A large proportion of promoter holdings are pledged, and FIIs have been decreasing their exposure consistently – almost having their stake from 1%. DIIs have also decreased their stake from 1.15% to less than 0.3% (except mutual funds). 24% of promoter holdings were pledged in September 2022 and have remained that way since then.

Also Read: Titan Company Ltd.

Peer multiple comparison

StockP/E RatioP/B RatioDiv. Yield
Johnson Controls-Hitachi Air Conditioning India Ltd.-37.844.71
Dixon Technologies (India) Ltd141.1427.880.05%
Voltas Ltd204.035.010.51%
Blue Star Ltd52.6115.800.55%


So, that’s a brief overview of everything you need to know about Johnson Controls-Hitachi Air Conditioning India Ltd.. before investing. This information is by no means, however, exhaustive, and we encourage you to do your own research before investing.

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