In 1993, its move to introduce a range of new-generation household ACs in the country catapulted it to the number one position in a market dominated largely by the small-scale industry and some Indian players.

But over the years, Carrier lost its market share in this segment primarily to Korean multinationals LG and Samsung, though its leadership in the commercial segment remained intact. With investment pouring into the retail sector, it's eyeing a big market in cold chain refrigeration.

In fact, Carrier Corporation president Geraud Darnis claims this market would be bigger than air-conditioning. He spoke to Amit Ranjan Rai on the company's plans to tap this market as well as competition in the household AC segment. Excerpts:

How has Carrier performed in the past few years? Has the growth been satisfactory?

Globally, we've seen significant growth in the past five years. From a $8 billion company in 2000, Carrier will grow to over $13 billion this year. Our growth has primarily been organic. The strong focus has been on new, innovative products and better distribution.

In the US, we've grown by about 50 per cent in the last five years. We have a compound annual growth rate of 13 per cent, which is quite good for a big company like ours. In the past four years, we filed some 800 patents, which is more than our next four competitors combined.

Depending on the markets, our focus has been different, but typically we've given a lot of attention to energy efficiency.

Almost worldwide, we see higher energy efficiency standards required; sometimes they are mandated - for instance, in the US the minimum energy efficiency standard was increased by 30 per cent. So, we invested $250 million to redo our product line, and make the products more efficient with better technology. The new products were introduced earlier this year.

So are your offerings ahead of competition...

If we've had a leading share in the US market, be it household air-conditioning or any other segment, it's because we've always had better products.

Globally, Carrier is double the size of its nearest competitor. And, we are number one or two in most markets worldwide. All that's been possible because of our superior offerings and strong distribution and service network.

How do you see the rise of Korean and Chinese players, particularly in the household air-conditioning segment?

The Koreans are strong in Korea, and they've picked up some markets where they are making aggressive moves - India is one of them. But on a global scale, as far as split AC units are concerned, it's the Chinese who are the biggest players.

That's because of the sheer size of the China market - about 40 million split units are sold worldwide, half of them in China. The Koreans are not in the biggest Asian markets - China and Japan - but they've been aggressive in the fast-growing Indian market.

Carrier is the leader in China in the commercial and refrigeration market, but it never entered its residential market, which is dominated by the big appliances companies such as Haier, Midea and Gree.

These companies took over the market on very small margins and tough price competition. We may enter this market one day, perhaps when it becomes more mature, when consumers are not only looking for the lowest cost products, but also differentiating them on better value, higher efficiency, reliability and so on.

We have a joint venture with Toshiba [Toshiba-Carrier, Japan] and we are starting to enter the Chinese high tier residential air-conditioning segment with the Toshiba brand.

How do you see the Indian market?

It's growing and has all the characteristics to become one of the largest markets in the world.

First, India has a large population - a billion people and still growing.

Second, the level of penetration for air-conditioning is still low. One way we measure all markets is by looking at them in terms of air-conditioning spent per capita. Roughly speaking, in India it's a $1 billion market, and thus, the per capita spend on air-conditioning is merely $1.

In the US, the per capita spend on air-conditioning is $14, in Europe it's $15, and in Japan it's $50. If  India gets to the same level as, say, Japan, it would be a $50 billion market. That's roughly how we estimate India's market potential.

The economy's growing and the growth rate over the past few years has been very impressive. Moreover, India's a hot and humid country and the growth in infrastructure, retail, real estate and other sectors are all indicators that our products will be much in demand.  You'll see Carrier invest more aggressively in the country.

What's your strategy to tap the Indian market?

Retail markets are coming up in a big way. I've heard from a government official that 40 per cent of the food harvested is spoiled because of lack of cold chains. That's a big number. So, as retail markets come up, the need to build cold chains to process, store, transport and display food will pick up aggressively.

Carrier is the world leader in all cold chain processes. Our business in refrigeration is about $5 billion. We are, thus, uniquely positioned to support all efforts to build cold chains. We are very excited about Indian companies that are studying the market to invest in retail. I think some of them would partner with global firms like Carrier.

We were a little frustrated when we entered the refrigeration market here about 10 years ago because it never took off, but now we're pleased to see investment being made. I think, this market will grow faster than the air-conditioning market. It's a big opportunity for us.

And what are your plans for the air-conditioning market?

Of course, our focus will also remain on air-conditioning. We are going to bring newer technology and higher efficiency products, for instance, the revamped range introduced in the US earlier this year. In fact, Aqua Force from that range, which is perhaps the highest energy-efficient chiller in the world, has recently been introduced in India and it's doing very well  already.

India has a challenge in terms of power. Building up infrastructure while keeping up with the growing demand for electricity is going to be tough. Thus, it important for industry in India to focus on energy-efficient products.

The difference between two products in terms of energy efficiency can be as high as 30 per cent. We have products that offer about 50 per cent more energy efficiency than those about 15 years ago, and people are ready to pay for them. You pay a little more, but you get a quick return. That's something we need to educate consumers. It's not just about the entry price, but also a lot about how big your energy bill is going to be.

Of course, the commercial segment - big companies, builders, hotels - is much more sensitive to this. We'll clearly have an advantage in this segment. In the residential segment, the Koreans are in a strong position. We are now number three or four in India, but nonetheless profitable in a very difficult segment. Our key focus will be on the mid- and high-tier market in the residential ACs segment.

We believe we have a strong legacy here, a brand name, a full range to offer, and in many places we beat Korean competitors. As the market matures, you'll see us bounce back to the leadership position.

So are we going to see Carrier as number one or two in the  household AC segment, too?

Carrier is the number one or two in most markets in the world. So I don't see why India should remain an exception.