§1What this business is
This is an assembly unit, not a full factory. It buys the compressor, condenser, evaporator coil, fan motor, blower, capacitors, switches, plastic grill and copper tubing. Workers cut and bend galvanised sheet for the cabinet, fit the parts, braze the copper lines, pull a vacuum, charge the refrigerant gas and test each unit for leaks and cooling. The profile plans four units a day. It names IS 1391, IS 7613 and IS 8148 as the test standards.
Capacity: 4 air conditioners a day, which is 100 a month and 1,200 a year on one shift for 300 days; the profile expects 70% use in the first year (840 units).
§2Is it right for you?
Who it is for
A refrigeration and air conditioning technician or engineer who already has institutional or dealer buyers and can give after-sales service.
Who it is not for
Someone hoping to compete with big brands in retail showrooms on price or advertising.
Advantages
- Small machinery cost of ₹1.80 lakh; most parts are bought ready
- Demand for cooling keeps rising in homes, offices and shops
- The same skills support installation and repair income
Drawbacks
- Thin margin of 7.9% in the profile
- Large national brands dominate the market
- Parts stock locks up heavy working capital
- Sales are seasonal, mostly in summer
Skills you need
- Brazing copper lines and leak testing
- Vacuuming and charging refrigerant gas
- Sheet-metal cutting, bending and spot welding
- Electrical wiring and performance testing
Why difficulty 4/5: Assembly is simple, but selling against big brands and meeting efficiency and refrigerant rules is hard.
§3Market
Who buys
- Offices, shops and showrooms
- Households
- Hotels, laboratories and computer rooms
- Appliance dealers
How it sells
- Direct sale with installation and service
- Local appliance dealers
- Supply to institutions against orders
Good to know
- The profile took a market price of about ₹20,000 for a 1.5 tonne unit and a selling price of ₹18,000 (2003).
- It notes that large companies already do most of the business in units of up to 2 tonnes.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Sheet bending machine | 1 | ₹12,000 |
| Sheet cutting machine | 1 | ₹15,000 |
| Hand press | 1 | ₹10,000 |
| Portable grinder, ½ HP | 1 | ₹4,000 |
| Drilling machine, ½ HP | 1 | ₹7,000 |
| Riveting machine, ½ HP | 1 | ₹4,000 |
| Vacuum pump for charging, 1 HP | 1 | ₹15,000 |
| Pressure pump for testing, 1 HP | 1 | ₹14,000 |
| Charging panel | 1 set | ₹5,000 |
| Acetylene and oxygen cylinders, torch and hose | 2 sets | ₹23,000 |
| Swaging, flaring and soldering tools and fixtures | — | ₹12,000 |
| Spot welding machine | 1 | ₹15,000 |
| Digital clamp meter | 1 | ₹3,000 |
| Spray gun and compressor | 1 set | ₹12,000 |
| Working table, chairs and office equipment | — | ₹15,000 |
| Electrification and installation | — | ₹14,000 |
From: DC-MSME project profile — Air Conditioner Window Type (2003)
- Compressor, 1.5 tonne100 a month at ₹8,000 each (2003)
- Galvanised (G.I.) sheet for cabinets₹1,000 a unit
- Fan motor₹1,000 each
- Blower₹1,700 each
- Condenser fan₹300 each
- Starting capacitor and 36 MFD running capacitor₹250 and ₹320 each
- Wires, relay, knob and switch set₹1,000 a set
- Capillary copper tubing₹800 a set
- Plastic grill₹300 a set
- Refrigerant gas200 kg a month at ₹250 per kg
From: DC-MSME project profile — Air Conditioner Window Type (2003)
§5Licences & registration
- Udyam registration
- GST registration
- Factory licence
- BIS certification where a Quality Control Order applies (the profile cites IS 1391)
- BEE star label for room air conditioners
- State Pollution Control Board consent where the state asks for it
Start it in your state
Pick your state: today’s cost, central + state subsidy, raw material, land and help, on one page.
§6Schemes & subsidies
The profile's cost of ₹37,00,375 is from 2003. PMEGP's ceiling is ₹50 lakh of project cost for manufacturing, so work out today's cost and check it against that ceiling. CGTMSE can back a collateral-free loan of up to ₹10 crore.
§7Money
How the investment is worked out: Fixed capital ₹13.00 lakh (land 200 sq m ₹4.00 lakh, building of 2,000 sq ft ₹7.00 lakh, machinery and equipment ₹1.80 lakh, pre-operative expenses ₹0.20 lakh) + working capital for 1½ months ₹24,00,375 = ₹37,00,375. Land and building are owned in this profile.
Working capital: Working capital is ₹16,00,250 a month, of which bought-out parts are ₹15,27,000 (the compressor alone is ₹8,000 a unit). The profile funds 1½ months, ₹24,00,375.
Prices from 2003 — parts, land and wage costs will be much higher now.
§8Export potential
Export council / board: EEPC India
- The profile prints no HS code and does not discuss export.
§9Risks — where people fail
- Refrigerant rules: the profile itself warns that Freon 22 harms the ozone layer and asks units to move to newer gases
- Price cuts and finance offers by large brands
- Warranty claims on compressors and gas leaks
- Unsold stock after a mild summer
§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 window 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 registration, GST registration), 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
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start Window 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.