§1What this business is
The unit buys condenser coils, copper pipe, compressors, cabinets, frames, grills and switches, tests the parts, assembles the indoor and outdoor units, charges the refrigerant gas and runs a final test. Small assemblers sell on personal contact and repeat orders to offices, showrooms and homes.
Capacity: 120 split ACs a year.
§2Is it right for you?
Who it is for
An AC technician or refrigeration mechanic with local contacts who wants to sell their own assembled units.
Who it is not for
Someone with no refrigeration skill or no plan for after-sales service.
Advantages
- AC demand is growing in homes, offices, shops and even farms
- Small assemblers win on price and after-sales contact
- Light equipment — mostly hand tools, gas charging and test kit
- Service and repair work can run alongside
Drawbacks
- Big brands advertise heavily and set customer expectations
- Raw material is about 70% of sales value
- Sales are seasonal (summer)
- Refrigerant handling and product safety rules apply
Skills you need
- Refrigeration and gas charging
- Brazing and pipe work
- Electrical testing
- Local selling and service
Why difficulty 3/5: Simple assembly, but brand competition and certification make selling hard.
§3Market
Who buys
- Offices and showrooms
- Middle and upper-class homes
- CNC shops, testing labs and calibration centres
How it sells
- Personal contact and repeat orders
- Local dealers
Good to know
- The profile says smaller assemblers hold a major share by selling at competitive prices.
- 1.5-tonne units are in most demand according to the profile.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Sheet bending machine and hand-operated sheet cutting machine | — | — |
| Hand press, portable electric grinder, drilling and riveting tools | — | — |
| Vacuum pump for gas charging and pressure pump for testing | — | — |
| Charging panel | — | — |
| Acetylene and oxygen cylinders, torch and hose | — | — |
| Swaging, flaring and soldering tools and fixtures | — | — |
| Spot welding machine, digital clamp meter, painting gun, compressor and work tables | — | — |
| All equipment (total) | — | ₹1,51,000 |
From: KVIC Project Profile — Air Conditioner (Split Types) (PMEGP)
- Condenser coils, copper pipe, compressors, cabinets, frames, grills and switches₹21,37,000 a year in the profile
- Packing material₹48,000 a year in the profile
From: KVIC Project Profile — Air Conditioner (Split Types) (PMEGP)
Suppliers in Building Business Bazaar
Henco Corporation · Mumbai →Parekh Machine Tools · Kolkata →Air Conditioning Components Company · Mumbai →Avery India Ltd · Faridabad →Blowt e ch Air De vices Pvt. Ltd · Noida →Essential Machine Tools (P) Ltd · Mumbai →Fridge Tools · Delhi →Keshav Enterprises · Delhi →Kirloskar Copeland Limited · Chennai →Mistcold Sales and Service Pvt. Ltd · Delhi →Seagul Fabricators Pvt Ltd · Mumbai →Walia Refrigeration Co · Delhi →
§5Licences & registration
- Udyam
- GST
- Trade licence
- BIS certification under the air conditioner quality control order
- BEE star-label registration for room ACs
- Pollution consent as per state category
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
PMEGP (KVIC model profile); at ₹10.16 L it fits a MUDRA Tarun loan; CGTMSE for collateral-free cover.
§7Money
How the investment is worked out: Workshed ₹4,00,000 + equipment ₹1,51,000 = capital ₹5,51,000; working capital ₹4,65,000; total ₹10,16,000. Land own.
Working capital: Working capital ₹4,65,000; the profile works out ₹4,59,265 per cycle. Raw material alone is ₹21.37 L a year.
Year not printed on the KVIC profile — check current machinery prices.
§8Export potential
Export council / board: EEPC India
- The profile prints no HS code; confirm the ITC(HS) line with DGFT before exporting.
§9Risks — where people fail
- Seasonal demand
- Compressor price and supply
- Warranty claims
- Compliance with BIS and energy-label rules for ACs
§1030 / 60 / 90-day plan
A general plan that applies to any business. A plan for this business will be added after research.
- Days 1–30: Visit a working split air conditioner assembly unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Udyam, GST), a project report (DPR), and the scheme or loan file.
- Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.
§11Who to connect with
Associations, clusters and training institutes — the directory is being built. Connect
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start Split Air Conditioner Assembly?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.