Welcomes You to Stakeholders Workshop on HPMP October,2011 New Delhi RAMA REFRIGERATION AND AIRCONDITIONING MANUFACTURERS ASSOCIATION 11 Stakeholders Workshop on HCFC Phase-Out Management Plan (HPMP) - 21,22 Oct 2011

R.K. Mehta REFRIGERATION & AIR CONDITIONING MANUFACTURERS ASSOCIATION (RAMA) Oct 2011, New Delhi STAKEHOLDERS WORKSHOP ON HCFC PHASE-OUT MANAGEMENT PLAN (HPMP) Update on HPMP For Refrigeration & Air conditioning (Manufacturing) Sector in India 2

REFRIGERATION AND AIRCONDITIONING MANUFACTURERS ASSOCIATION (RAMA) was formed in 1991 as Non-Profit Association. To promote the overall growth of Air-conditioning & Refrigeration Industry in India, keeping in mind the larger economic goals of: Maximizing investments in India Maximizing job creation in India RAMA Aims and Objectives(1) 33 Stakeholders Workshop on HCFC Phase-Out Management Plan (HPMP) - 21,22 Oct 2011

RAMA Aims and Objectives (2) To conduct research and facilitate the research in matters relating to the Air Conditioning & Refrigeration industry. To work with other Industry Associations and Scientific bodies such as ISHRAE/ ASHRAE/ AHRI to achieve the following: –Keeping RAMA members abreast of latest standards & developments. –To facilitate adoption of standards relating to manufacturing, energy efficiency, environment management, etc. 44 Stakeholders Workshop on HCFC Phase-Out Management Plan (HPMP) - 21,22 Oct 2011

RAMAS CREDENTIALS RAMA is actively involved in formulation of Policies and Procedures for the HVAC industry by Government of India Nominated for preparation of HPMP for RAC sector in India Active participation in formulating Energy labeling program for Air conditioners and Refrigerators Recommendations on rationalization of tax structure, financial incentives for growth of the industry and supporting initiatives on environment protection, energy efficiency, etc. Recommendations on formulation of trade policies Affiliated to CII (Confederation of Indian Industry) and active participation in various councils 55 Stakeholders Workshop on HCFC Phase-Out Management Plan (HPMP) - 21,22 Oct 2011

Industry Size (2010 ~ 11) US$ (billion) Air Conditioning Systems3.2 Dom.& Comm. Refrigeration 2.6 Servicing 0.3 Total 6.1 Air conditioning Systems Growth during last 5 years: over 20% Expected growth during medium term: 30% Penetration level around 3% Segment-wise growth rate trend: Room air-conditioners :30% VRF systems :40% Chillers :10-15% Ducted/package:15-20% Others (precision/telecom): 25~30% INDUSTRY SIZE AND GROWTH 6 Stakeholders Workshop on HCFC Phase-Out Management Plan (HPMP) - 21,22 Oct 2011

Commercial Refrigeration Sector Growth during last 5 years : ~10% Expected growth during medium term: 10~12% Segment-wise growth rate trend: Water Dispensers:20% Storage Water Coolers:10-12% Display/storage equipment:15% INDUSTRY SIZE AND GROWTH (2) 77 Stakeholders Workshop on HCFC Phase-Out Management Plan (HPMP) - 21,22 Oct 2011

HPMP--INDIA RAMA, being the reputed, subscription funded, Non- Profit, Manufactures association was selected by Ozone Cell, MOEF & UNDP to Prepare HPMP for RAC Manufacturing Sector, for India. Accordingly, Ozone Cell, MOEF signed an MOA with RAMA on 22 nd March, 2010,for preparing Draft Strategy for Refrigeration and Air-Conditioning Manufacturing Sector. 88 Stakeholders Workshop on HCFC Phase-Out Management Plan (HPMP) - 21,22 Oct 2011

KEY CONSIDERATIONS ADOPTED FOR PREPARATION OF HPMP PREPARATION OF HPMP (1) Data Collection Data Analysis Strategy Preparation Updating of work plan 99 Stakeholders Workshop on HCFC Phase-Out Management Plan (HPMP) - 21,22 Oct 2011

PREPARATION OF HPMP(2) The following information was collected through Survey conducted by IMRB, the Survey Agency Background information about the enterprise Product range with R 22 and year of start of production of such products Production during last 3 years & estimated production till 2015 (to assess uncontrolled demand for R22) Enterprises assessment of Options of non ODS manufacturing technologies Technology transfer costs (TCA, royalty) Incremental investment for product development, production, testing facility, safety equipment, etc. required for implementation of such technologies Increase /decrease in product costs Exports of products containing R22 to developed & developing countries Receipt of grant for phase out of CFCs, if any 10 Stakeholders Workshop on HCFC Phase-Out Management Plan (HPMP) - 21,22 Oct 2011

PREPARATION OF HPMP (3) Draft strategy for achieving required consumption control for R&AC sector was prepared on the following basis : Assessment for each sub sector Identifying sub sectors using R 22 Uncontrolled demand till 2015 Availability of alternate technologies for switchover Identifying sub sectors which can switchover relatively easily Estimatin g consump - tion control targets for R&AC sector Assessment of switchover cost required for the identified sub sectors Prioritizing sub sectors for switchover 11 Stakeholders Workshop on HCFC Phase-Out Management Plan (HPMP) - 21,22 Oct 2011

PREPARATION OF HPMP (4) Following steps have been adopted for identifying sub sectors and assessing demand, technology options and investment for switch over: Identifying sub sectors, large and SME with the help of RAMA members (compressor manufacturers and others) Developing Questionnaire for collecting information Engaging Agency,IMRB for collection of information Developing sampling plan for collection of information from SME players Holding Awareness workshops in each region for exchange of information with subsector players. Collection of information from all large manufacturers and selected SMEs in each subsector 12 Stakeholders Workshop on HCFC Phase-Out Management Plan (HPMP) - 21,22 Oct 2011

HPMP-INDIA DRAFT STRATEGY PROCEDURE ADOPTED -1 Core Committee consisting of 10 members with Mkt Leader from each subsector was constituted and 10 Meetings were held.. For each subsector, a committee with a chairman for over all supervision and guidance was constituted. These subsector committees, comprising of experts from manufacturers in each subsector made in depth analysis of data and giving recommendation on Strategy. Full time Project officer was appointed for desk research on technology options/updates, support for data collection and support for Regional workshops. 3 Regional awareness Workshop were held at Chennai, Mumbai and Delhi where more than 250 representatives of Mfrs participated and majority of them were SMEs. Agenda of Discussions is enclosed. 9 Subsectors were made and Chairman of each subsector group, was the Mkt leader of that subsector with best Domain knowledge. 13 Stakeholders Workshop on HCFC Phase-Out Management Plan (HPMP) - 21,22 Oct 2011

PROCEDURE ADOPTED --2 Equipment Manufacturers List, with Name & addresses was prepared jointly with the help of 3 Compressor manufacturers Emerson, Danfoss and Tecumseh (RAMA, Members). A Master List of 214 mfrs in all subsectors was made. It consisted of Large Mfrs of Turnover above Rs 100 Mn, Medium Turnover of Rs Mn and Small scale of Turnover of Less than Rs 30 Mn on per annum basis Renowned market research agency IMRB was appointed for survey of parties, which did a good job, with the help of Compressor Mfrs. 39 Large scale Mfrs, 21 Medium scale Mfrs & 50 small scale mfrs were surveyed. In each segment all the subsectors were covered Survey reports were reviewed by core committee at various stages, and it advised for further work, wherever needed. Collected data was analyzed for 3 years i.e., 2007 to 2009 for Consumption of HCFC by each subsector. Cumulative growth in Consumption & HCFC consumption by Small. medium & Large mfrs. 14 Stakeholders Workshop on HCFC Phase-Out Management Plan (HPMP) - 21,22 Oct 2011

REPORT SUMMARY Key contents of report are: Market size estimates for each sub sector HCFC consumption estimates on unrestrained basis. Working out of baseline consumption control quantity based on actual consumption during the years 2009 and Baseline will be effective from 2013 & 15 Evaluation of alternate refrigerant for each subsector, considering global trends and commercial viability Prioritization of sub-sectors for phase-out Estimation of costs for change over to non-ODS refrigerants 15 Stakeholders Workshop on HCFC Phase-Out Management Plan (HPMP) - 21,22 Oct 2011

A BIG THANK YOU We are extremely thankful to Dr Duraisamy, Director ozone cell, Dr R.S. Agarwal, Senior advisor & Corordinator, UNDP (SPPU), Mr Nandan Chirmulay, Senior Technical Advisor & Regional Cordinator –Asia & Pacific Region, UNDP, for their Guidance at various stages during the preparation of HPMP for RAC Manufacturing sector We are also thankful to all the Manufacturers of AC &R industry in India for their participation & support 16 Stakeholders Workshop on HCFC Phase-Out Management Plan (HPMP) - 21,22 Oct 2011