Aircon firm credits BPOs for growth

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Friday, March 7, 2014


DAIKIN Airconditioning Philippines, Inc. reported strong sales of its models for large buildings, with the country’s robust business process outsourcing (BPO) sector. The company sees Cebu as one of its “continuously growing” markets.

Hans Carlo Letigio, Daikin Philippine’s manager for Visayas and Mindanao, said Daikin’s Variable Refrigerant Volume (VRV) III, which are used for large buildings, hit sales of P100 million in Visayas and Mindanao in 2013. The figure is a tenfold increase from its P10 million sales in 2011. In 2012, the company recorded P21 million in revenues for VisMin.

“The market is really growing...BPOs really helped us a lot. Most of our business partners are the contractors (for BPOs), and our market in Cebu has adopted the VRV technology,” Letigio said.

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Daikin says its VRV system offers “large outdoor capacities, greater energy savings and easier installation,” among its many other features.

Market share

Jed O. Caburian, sales operation division manager of Daikin, said the Visayas accounts for 30 percent to 40 percent market share.

This, he also attributed to the BPO companies in the Visayas, mostly situated in Cebu, which demand an “efficient and energy-saving” airconditioning facility given its 24-hour daily operation.

Letigio said Daikin’s Cebu office in Mandaue City, which was designated a satellite office in 2011, became a full regional office for VisMin in 2012 due to the increasing market demand.

“The plan really was to test the water on how the market would react. We have seen the potential market in Cebu so we decided to open it into a full regional office, and simultaneously, we put up a warehouse in Cebu where we will store the units. We started with one warehouse, now we have two,” Letigio said.

The two warehouses in Mandaue City can store up to 500 sets. In response to the growing market in Mindanao, Daikin set up a satellite office in Davao last year. Letigio said the company is eyeing to put up an office in Cagayan de Oro most likely this year.

On Thursday, Daikin Philippines unveiled in Makati the fourth generation VRV or the VRV IV, which is scheduled to be made available in July.

Caburian said the company is targeting a thousand VRV IV units to be sold this year.
Letigio said its VisMin office is targeting 500 outdoor units to sell, which if sold, will amount to P500 million.

Last year, 200 VRV III outdoor units were sold in VisMin.

More BPO firms

Letigio, said that with the introduction of VRV IV, the company is confident that it will be able to tap more BPO companies and corporate offices in VisMin.

The company said the VRV IV has enhanced energy saving and offers easier installation.

VRV IV’s outdoor units also offer a higher capacity of up to 60 horsepower, responding to the needs of large-sized building.

Aside from BPOs, Letigio also attributed the growth of Daikin to the country’s thriving construction industry. In Cebu alone, the official said there were 90 high rise condominiums with pending approvals of construction last year.

Caburian said they are also tapping the market for residential property developers and hotels.

For the residential market, Daikin will make its Urusara model available in the country in the coming months. This airconditioning unit has three functions: air conditioner, air purifier and humidifier.

Letigio noted that the competition in the market is stiff, especially with the presence of Korean and Chinese brands selling their units at a lower price. Letigio said what makes Daikin products stand out is that it assures buyers of “a quality product” and “no misdeclarations” of features.

Daikin has served big projects in the country, including the Canon Manufacturing facility in Batangas, SM corporate offices, Ameeratel and Gagfa Tower in Cebu and Golden ABC Corporate Center, among others. (JOG/Sun.Star Cebu)

Published in the Sun.Star Cebu newspaper on March 07, 2014.

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