Electro Mart invests CZK 500 in expansion of air conditioning production

Highlights:

• New investments will be made over the next 3 years.
• The company has already invested Tk 200 cr in the production of Gree ACs in the last 3 years.
• Sales of Gree air conditioners have grown from 16,000 units in 2016 to over 2 lakh units in 2023.
• Gree aims to increase annual sales to 5 million units within five years

Electro Mart Limited (EML), one of the largest electronics and home appliances companies in Bangladesh, has announced plans to invest Tk 500 crore over the next three years to expand its air conditioner (AC) manufacturing capacity, especially for the Gree brand.

The announcement was made during a press conference at The Westin to mark the visit of Kevin Bai, assistant to the president of Gree, the Chinese electronics giant founded in 1991.

“We have already invested Tk 200 crore in the last three years to manufacture Gree ACs. To meet the growing demand, we plan to invest an additional Tk 500 crore in the next three years,” said EML Deputy Managing Director Nurul Afser, adding that EML currently manufactures all AC components locally except compressors.

Kevin Bai said Bangladesh’s growing importance to Gree is driven by rapid growth in demand for air conditioners. “When I first visited Dhaka in 2016, annual sales were only 16,000 units. We now sell over 2,00,000 units a year,” Kevin told The Business Standard.

He said Gree aims to increase annual sales in Bangladesh to 5,00,000 units within five years.

Annual sales of air conditioners of various brands in Bangladesh will reach approximately six thousand units in 2023, according to industry officials.

Highlighting the company’s focus on sustainability, Kevin said Gree is investing heavily in research and development to reduce carbon emissions from air conditioners. “When an air conditioner runs on solar energy, it produces zero carbon emissions,” he added.

Kevin also advised consumers to choose inverter air conditioners, which, despite being 10-15% more expensive than non-inverter models, use significantly less energy.

To expand its presence in Bangladesh, Gree plans to introduce more home appliances including refrigerators and microwave ovens.

Gree operates 18 manufacturing bases around the world, including facilities in China, Brazil, Bangladesh, Egypt and Pakistan. According to Kevin, the company owns about 37,000 technology patents, including more than 16,000 for inventions.