Bosch Home Comfort Group plans to launch Bosch-branded air conditioners in India next year and is targeting a strong double-digit market share within two years, Managing Director Sanjay Sudhakaran said, as the company prepares to invest about Rs 900 crore to expand manufacturing, localisation and engineering capabilities.
The company, which acquired the global residential and light-commercial air-conditioning business of Johnson Controls and Hitachi in August 2025, is pursuing a dual-brand strategy in India. Hitachi will serve the mainstream and mass-premium segments, while Bosch will be positioned in the performance-premium and super-premium categories.
Sudhakaran said the company also aims to become one of India’s top five cooling and comfort brands in the medium term. Bosch-branded air conditioners are expected to compete in a segment that includes brands such as O General and Mitsubishi Electric, with products priced at around Rs 45,000 to Rs 50,000 and above.
The investment will support the company’s residential air-conditioning business as well as its expansion into light-commercial products, including variable refrigerant flow systems under the Hitachi brand. Hitachi’s latest VRF products are being manufactured at the company’s facility in Kadi, Gujarat, while its global research and development centre in Ahmedabad has been expanded to focus on light-commercial air-conditioning technologies.
The Kadi plant currently has annual manufacturing capacity of more than 10 lakh air-conditioning units. The company is also considering whether to establish another manufacturing facility in southern India, although Sudhakaran did not confirm or deny that such a move was under consideration.
Local manufacturing and backward integration will remain central to the expansion. About 75 per cent of the company’s procurement is currently sourced domestically, while imports account for approximately 25 per cent. The Kadi facility manufactures heat exchangers, indoor-unit moulds, condensing units, sheet-metal components, tubing and coils, and also carries out painting operations.
Sudhakaran said the company imports products and components that are not available in India and has prioritised domestic manufacturing over greater import dependence. Bosch Home Comfort also has access to compressor supplies through a joint venture with a major global compressor manufacturer operating a plant in Ahmedabad.
The company plans to use Hitachi’s existing distribution and retail network for both brands while exploring Bosch’s consumer-appliance retail footprint. Bosch-branded air conditioners may also be sold through Bosch and BSH-branded stores. Large-format retailers, regional retailers and online platforms will remain part of the distribution strategy.
The company expects to share backend capabilities across sales and service networks, manufacturing, research and development, product development, supply chains and human resources. On the customer-facing side, Bosch and Hitachi will have differentiated product portfolios, features, channels and positioning. Sudhakaran said India’s low room-air-conditioner penetration, rising disposable incomes and economic growth provided significant room for expansion.
