Bosch acquires controlling stake in Johnson Controls-Hitachi AC India

New Delhi: Robert Bosch GmbH is set to expand its footprint in India by acquiring control of Johnson Controls-Hitachi Air Conditioning India (JCHAI). According to a stock exchange filing, Bosch has acquired a 74.2% stake in the company from its parent entities, Johnson Controls-Hitachi Air Conditioning Holding (UK) and JCHAC India HoldCo, effective July 31.

The acquisition forms part of a broader global transaction in which Bosch is purchasing the air conditioning solutions division for residential and light commercial buildings from Johnson Controls, as per the report. 

This global deal, valued at $8 billion, marks Bosch’s largest acquisition to date and includes the complete acquisition of the Johnson Controls-Hitachi Air Conditioning joint venture, including Hitachi’s 40% ownership.

Bosch is expected to announce details of a mandatory open offer for the remaining 25.75% shares held by minority shareholders in JCHAI. The full financial terms of the Indian transaction have not been disclosed.

While Bosch has outlined plans for global integration of the acquired AC operations, the report notes that decisions specific to India are likely to follow the completion of the open offer, given JCHAI’s status as a listed company.

JCHAI reported Rs 2,756 crore in revenue and Rs 58 crore in net profit for FY25, returning to profitability after a net loss of Rs 75 crore in FY24. The company also recorded a 44% growth in revenue. 

However, in the June quarter, JCHAI’s revenue declined by 14% year-on-year to Rs 852 crore, despite outperforming the broader air conditioning industry, which contracted by 40% due to an early monsoon and uneven rainfall.

According to the report, demand for light commercial air conditioners is rising, driven by government spending in sectors such as healthcare, education, and transport infrastructure, as well as increased private sector investment.

JCHAI, which markets its products under the Hitachi Cooling and Heating brand, manufactures room, commercial, and ductable air conditioners. The company competes with Voltas, LG, Havells, Daikin, and Blue Star, and is expanding internationally across South Asia, with a presence in Bangladesh, Maldives, Sri Lanka, Nepal, and Bhutan.