Zamil Air Conditioners (ZAC), a business of Zamil Industrial, has become a part owner of an Indian air conditioning company following acquisition of a 30 per cent stake.

ZAC has purchased the equity from Advantec Coils Pvt Ltd for SR59 million ($15.7 million) and says it is the highest investment made by a GCC air conditioning firm in India.
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 year. 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 (OEM) agreements.
A Zamil Industrial statement said: “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 an average growth rate of 20 per cent per year. The consumer air conditioning market is estimated to be around three million units and 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.”
On signing the agreement, Abdulla Al Zamil, chief operating officer, Zamil Industrial, commented: “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.”
GP Singh, founder and managing director of Advantec, commented that he was very happy over the joint venture with an international player like Zamil and excited about the future prospects for the company.
Osama Bunyan, executive vice president, Zamil Air Conditioners, said: “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.”
Zamil Air Conditioners was founded in 1974 as one of the first air conditioning businesses to be established in Saudi Arabia and today is a leading international manufacturer of air conditioning systems and Number 1 in the Middle East. It designs, manufactures, tests, markets and services a comprehensive range of air conditioning products, from compact room air conditioners and mini splits to large-scale central air conditioners, chillers and air-handling units for highly specialised commercial and industrial applications.  These products and services are marketed under various brand names – Classic, Cooline, Cool Care, Clima Tech, Kessler Clima Tech and Geoclima – depending on specific markets. ZAC’s factories are located in Dammam, Saudi Arabia and Italy.
Zamil Air Conditioners is also involved in the production of branded air conditioners for several leading international manufacturers under OEM agreements. It operates a joint venture between Zamil Industrial and General Electric, called Middle East Air Conditioners Ltd. (MEAC).
ZAC has been vigorously moving into newer markets, seeking strategic alliances and investing heavily in R&D.
It is one of four sector businesses of Zamil Industrial, the others being Zamil Steel, Zamil Glass Industries and Arabian Fibreglass Insulation Company.
For the year ended 31 December 2007, Zamil Industrial posted a turnover of SR3.68 billion, a growth of 28.4 per cent over 2006, with net profit, after the Zakat contribution, of SR 206.5 million. Export sales accounted for SR1.33 million representing 36 per cent of total revenue and 20.4 per cent growth over 2006. Zamil Industrial exports to more than 80 international markets.