The building and industrial solutions (BIS) unit of air-conditioning and refrigeration systems provider Concepcion Industrial Corp. (CIC) reported robust sales growth for the first half driven by its joint venture with elevator and escalator maker Otis E&M Co. Inc.
The building technologies division of CIC said unaudited sales for the first half rose to P1.1 billion, a 49 percent increase compared to the same period last year.
Sales at the end of 2014 reached P2 billion, which was 50 percent higher than that of the previous year.
As of end-2014, the BIS division has contributed 22 percent to CIC’s total sales, which was 7 percent higher than its contribution than its midyear 2014 contribution of 15 percent.
Concepcion BIS group director Rajan Komarasu told reporters that the growth in sales was largely contributed by the company’s joint venture with Otis E&M.
“The significant growth was driven by the Otis joint venture in March 2014 and strong ventures from air-conditioning projects,” said Komarasu.
He said revenue from Otis in 2014 stood at P381 million, accounting for nine months of sales since the joint venture was entered into in late March 2014.
“We are bullish about Otis’ growth but it will take some time to realize the benefits of the investments that we are making,” he said.
Komarasu said that one of the plans of Concepcion BIS is to widen its share in the heating, ventilation and air-conditioning (HVAC) unit.
This expansion will be done by capitalizing on the wide product offering of its brands such as Carrier, Toshiba and Midea.
“Once the Midea brand, which we launched last year, gains more traction, we are confident that our market share will improve especially in the provincial areas where we are focusing on improving distribution through our contractor partners. As of June this year, we have over 80 strong partners working with us in offering HVAC solutions” explained Komarasu.
Komarasu also said that BIS is investing significantly in its human resource by providing free training for their employees in order to build their capabilities.
He also added that BIS plans to expand its portfolio into the security and fire protection industry, but he did not elaborate.