In a major push to strengthen its footprint in India’s consumer durables and HVAC sector, Germany’s Bosch Group has acquired a 74.2% stake in Johnson Controls-Hitachi Air Conditioning India (JCHAI). The move is part of Bosch’s largest-ever global acquisition, valued at $8 billion, and marks a significant shift in the competitive landscape of India’s premium air conditioning market.
Bosch Secures Controlling Stake in JCHAI
According to a stock exchange filing on Monday, Bosch finalized the purchase of a controlling stake in JCHAI from Johnson Controls-Hitachi Air Conditioning Holding (UK) and JCHAC India HoldCo Ltd, with the deal taking effect on July 31. The acquisition includes Hitachi’s 40% ownership in the joint venture. While the exact financial terms remain undisclosed, the move forms part of a global agreement Bosch initiated nearly a year ago to acquire the air-conditioning solutions segment of Johnson Controls.
Open Offer for Minority Shareholders Imminent
With 74.2% of JCHAI now under its control, Bosch will soon make a mandatory open offer to acquire the remaining 25.75% shares held by minority shareholders. Given JCHAI’s publicly listed status, any integration into Bosch’s global structure will proceed after this phase is completed.
Strengthening Bosch’s Position in India’s Consumer Durables Market
Bosch already has a strong presence in India’s premium home appliance segment with products such as refrigerators, washing machines, dishwashers, kitchen appliances, and vacuum cleaners. The acquisition of JCHAI is expected to significantly boost its position in the air-conditioning sector, where it will now compete directly with established players like Voltas, Daikin, LG, Blue Star, and Havells.
JCHAI’s Financial Turnaround and Market Outlook
JCHAI reported ₹2,756 crore in revenue and ₹58 crore in net profit for FY25—rebounding strongly from a net loss of ₹75 crore in FY24. This 44% surge in annual revenue signals renewed momentum for the company. However, in Q1 FY26, its revenue dropped 14% year-on-year to ₹852 crore, though this was considerably better than the broader industry’s 40% slump attributed to erratic monsoons.
Demand Driven by Public and Private Sector Investments
According to JCHAI’s annual report, demand for light commercial air conditioning solutions is rising steadily due to increased government investments in infrastructure, healthcare, and education, alongside private sector expansions in retail, hospitality, and logistics.
Expanding Footprint in South Asia
Beyond India, JCHAI has been actively growing its presence in neighboring countries, including Bangladesh, Sri Lanka, Nepal, Bhutan, and the Maldives. The company markets a wide range of cooling products—including room ACs, ductable units, and commercial systems—under the Hitachi Cooling and Heating brand.
Bosch’s acquisition of JCHAI marks a strategic entry into India’s fast-evolving HVAC market. As integration progresses and Bosch rolls out its open offer, the move is expected to reshape the competitive dynamics of the cooling solutions segment across South Asia.
