Zamil Industrial announces joint venture with Advantec Coils

Zamil Air Conditioners recently acquired 30% of Advantec equity for a total amount of about SR59m.

Advantec Coils Private Ltd. is a fast growing air conditioning manufacturer and one of the few companies in India to operate a completely integrated manufacturing facility -from plastic injections to assembly.

The Advantec facility has an installed production capacity of 1.2 Million units per annum.

The company has demonstrated an impressive growth rate over the years and has a solid distribution network for its own brands. It also manufactures international brands under Original Equipment manufacturer agreements (OEM).

This joint venture marks the first major investment by a GCC air-conditioning company in India.

India is an emerging economy with long term potential.

With a low level of Air conditioning penetration, Indian is one of the fast growing Air Conditioning markets in the world with average growth rate of 20% per year.

Market growth has averaged about 20% per annum. The consumer air conditioning market is estimated to be around three million units and it is projected to increase to seven million units in the next five years.

An overall boom in all sectors of the economy combined with growth in the real estate sector and SEZs (Special Economic Zones) continue to drive the demand for consumer as well as commercial air conditioning products.

"Our Joint Venture with Advantec Coils demonstrates that at Zamil Industrial, we are fully committed to a solid and long term investment in the Indian market. We are very bullish about the opportunity and we are now positioned to take full advantage of the market conditions with our new partner Advantec, said Abdulla Al Zamil, Chief Operating Officer, Zamil Industrial, upon signing the agreement. Mr. G.P. Singh, Founder & Managing Director of Advantec, commented that he is very happy with this association and Joint Venture with an International player like Zamil and excited about the future prospects for the company.

"From our Saudi business perspective, this JV in India strengthens our long term competitiveness and adds to our flexibility and capacity to offer a wide range of top quality products and solutions to our customers," commented Osama Bunyan, Executive Vice President, Zamil Air Conditioners.