A. O. Smith acquires manufacturer of air-source water heaters

A. O. Smith Corporation, the parent company of A. O. Smith India Water Heating Private Limited, a global leader in applying innovative technology and energy-efficient solutions to water heating products marketed worldwide has acquired the assets of Applied Energy Recovery Systems Inc. (AERS), a leading manufacturer of commercial and residential heat pump water heater products located in Norcross, GA, USA.

AERS’ E-Tech product line includes commercial and industrial water heaters, commercial outdoor and indoor pool heating systems, and residential water heating and swimming pool products.

Commenting on the acquisition, David Warren, Vice-President (International), A. O. Smith Water Products Company, said, “With the growing demand for more efficient water heating products to address the high cost of energy and the need for using renewable energy resources, the acquisition of AERS will enable A. O. Smith to accelerate the company’s foray into the fast-growing segment of the water heater market. As India is a priority market for us, we would like to market and distribute heat pump technology in India in coming years.”

A. O. Smith has set a priority for the Indian market even in these challenging times. India has a large market for the electric water heater segment which is slated to be at Rs 360-375 crore for the organized sector.

The E-Tech product line utilizes technology that uses heat from the surrounding air or water to heat water in high-demand commercial applications such as laundries, restaurants and institutional kitchens.

Explaining the technology in detail, Tamal Chaudhuri, National Sales & Marketing Manager for A. O. Smith’s India venture said, “Air-source heaters capture and redirect waste heat in the surrounding air and uses it as energy to heat water. In other applications, the units use water sources such as waste water generated by a building’s chiller or cooling system to heat water. This heat is normally ventilated or drained away. Because the energy savings generated from the captured heat significantly exceeds the energy cost of running the water heater, this is a highly efficient means for heating water. This cutting-edge technology is especially relevant in a country like India where summer temperatures average between 32-40° C.”

The company currently manufactures a premium line of residential electric water heaters for the electric wholesale and retail channels as well as co-branded products for Jaguar Company, PLC one of the leading suppliers of the sanitary channels in India. A.O. Smith and Jaguar reached a marketing agreement in July.

A. O. Smith has established its headquarters in Bengaluru and has also acquired 20 acres of land to set up a manufacturing unit. Design work on the 20 acres facility began in the fourth quarter of 2008; construction is scheduled for completion in the second quarter of 2010. The plant will initially employ approximately 100 employees. A. O. Smith currently has sales offices and stocking warehouses strategically located throughout the country as well as a sales and customer service organization in place.

FROST & SULLIVAN RECOGNIZES A. O. SMITH FOR ITS COMMITMENT TO INNOVATION

A. O. Smith Corporation, the parent company of A. O. Smith India Water Heating Private Limited, a global leader in applying innovative technology and energy-efficient solutions to water heating products marketed worldwide, has bagged the prestigious Frost & Sullivan Product Innovation of the Year Award. This is the second time A. O. Smith has received the award in four years.

Based on its recent analysis of the North American water heater market, Frost & Sullivan presented A. O. Smith Corporation with the 2009 Frost & Sullivan Product Innovation of the Year Award for its distinctive commitment to delivering innovation in product design and efficiency.

Commenting on the achievement, David Warren, Vice-President (International), A. O. Smith Water Products, said, “It is an honour for A. O. Smith to be recognised by Frost & Sullivan for our dedication to innovation twice within four years. The recognition reinforces A. O. Smith’s promise to deliver innovative technology and energy efficient water heating products not only in America but across the globe.”

Frost & Sullivan Research Analyst Jorge Moreno said “The Company scored highest on services, availability of spare parts, product range and features, and energy efficiency, which were classified as the most critical success factors for contractors and end-users alike. Also, the A. O. Smith brand is highly recognized, which tends to play an important part in the purchasing decisions of end-users and therefore the installers and contractors as well.”

Tamal Chaudhuri, National Sales & Marketing Manager, A. O. Smith India Water Heating Private Limited commented, “Overall, A. O. Smith’s vision and sound understanding of the industry have enabled it to introduce new products that are more efficient and with original design features. This is especially true in case of our India Operations. A. O. Smith products available in India are a result of extensive research conducted to identify what the Indian consumers need. The products have been tailored to answer the differentiated India market and conditions. In recognition of these factors the company is the deserving recipient of the 2009 Frost & Sullivan Product Innovation of the Year Award. We have always strived to apply innovative technology to make our products not only energy efficient but superior in performance.” The award lauds innovation shown by launching a broad line of emerging products and technologies.

A. O. Smith is the first US water heater business to enter the India market and is supplying premium quality residential and commercial water heaters to the markets. The company conducted comprehensive research before entering the market including consumer focus groups and qualitative studies.

The result was the premium eco-friendly top quality electrical water heaters. Dual glass coated heating elements in the water heaters reduce electricity bills, increase the life of the heating element and heat water faster, thus proving to be a product that offers value for money and efficiently conserves energy.

Adding further, Tamal Chaudhuri said, “No other water heater company in the world has the resources that A. O. Smith brings to the Indian market. We offer a portfolio of the best-known and most widely respected water heater brands in the world. Our facility under construction at Harohalli, Bengaluru, will manufacture water heating products specially customized for India market and ecological conditions. We would like to emphasise that India is a priority.”

Frost & Sullivan’s Best Practices Awards recognise companies in a variety of regional and global markets for demonstrating outstanding achievement and superior performance in areas such as leadership, technological innovation, customer service, and strategic product development. Industry analysts compare market participants and measure performance through in-depth interviews, analysis, and extensive secondary research in order to identify best practices in the industry.

A. O. Smith will help educate and influence consumers, retailers, architects and contractors that the implementation of high-efficiency products will reduce life-time operating costs and energy costs.

From manufacturing to installation, A. O. Smith is dedicated to bringing innovative products and services to the market. The company’s vision and understanding of the industry have enabled it to introduce new products that are more efficient, less costly to produce, and offer original design features.

A. O. Smith sets up its local manufacturing plant in Bengaluru

One of the leading manufacturers and suppliers of water heaters worldwide and the number one supplier of water heaters in the U.S., A.O. Smith announced an acquisition of 20 acres of land to set up a 76,000 square foot local manufacturing facility in Harohalli Karnataka Industrial Area in Bengaluru. The manufacturing facility will cater to the growing demand for water heaters that are especially customized to suit the requirements of the Indian market and provide A. O. Smith with the ability to expand its manufacturing operations as volumes grow. Construction is scheduled for completion in the second quarter of 2010. The plant will initially employ approximately 100 employees.

A. O. Smith is the first U.S. water heater business to enter the India market supplying premium quality residential and commercial water heaters to the markets. They have initially begun operations through their residential water heater business. However the company has set up an exclusive team that will be dedicated to expanding their commercial water heater business in India. The company initially began sales offices in 10 cities across India with Bangalore as its head quarters. Following the customer response to the premium water heaters offered by the company, A. O. Smith is now looking at expanding to newer cities. This is largely due to an aggressive marketing strategy followed by the A. O. Smith India marketing team whose aim is to be one of the leading suppliers of premium water heaters in the state.

 

 

 

A. O. Smith has already acquired market share of over 3 percent in just 4 months of operation, following the launch of its water heaters in September 2008 and aims to increase its market share further and re-enforce its commitment to the Indian market.

A. O. Smith has set a priority for the Indian market even in these recessionary times. India has hugely untapped potential for the water heater market which is slated to be at Rs 450 crores for the organised segment and an even larger market for the unorganised segment.

Commenting on this priority set for the Indian market, Mr David Warren, Vice President, International, A. O. Smith, said “We believe that no other water heater company in the world has the resources and technological know-how that A. O. Smith brings to the Indian market. We offer a portfolio of the best-known and widely respected water heater brands in the world. Our company enjoys a 70-year history of engineering excellence, marked by many breakthrough technologies in water heating.”

He further added, “Our long-term commitment to Indian market is what sets us apart from the other international companies that manufacture water heater in India. A. O. Smith is the first U.S. water heater business to enter the India market and is supplying premium quality residential and commercial water heaters to the markets. The company conducted extensive research before entering the market including consumer focus groups and qualitative studies. The sleek designs and colours of the new A. O. Smith water heating product line are the result of this research and acknowledge the growing importance Indian consumers place on the attractiveness of their bathrooms and fixtures”.

The company’s patented Blue Diamond Glass Lining formula out-performs other glass-lined tanks and therefore offers enhanced protection against premature tank failure caused by hard water commonly found in India. The company will also introduce a glass-coated heating element, which will reduce electricity bills and increase the life of the heating element.

Mr Tamal Chaudhuri, National Sales & Marketing Manager, A. O. Smith India said, “Like other countries experiencing rapid growth and industrialization, India too is facing environmental concerns regarding its development, in particular the issue of energy conservation across industries. Responding to these needs, A. O. Smith will utilize innovative international manufacturing expertise to supply energy efficient water heaters to the India market, which is the need of the hour.”

Commenting on the manufacturing facility in Bengaluru, he added, “We have selected Bengaluru for a number of strategic reasons. The city is centrally located in one of our key target markets in India with a growing middle class interested in premium water heater solutions. Bengaluru has extensive engineering and technical resources with a strong local infrastructure that will support our distribution needs across the country.”

The company currently manufactures co-branded products for Jaquar Company, PLC one of the leading suppliers of the sanitary channels in India. A. O. Smith and Jaquar reached a marketing agreement in July.