Electro Mart to invest Tk500cr to scale up AC production
We have already invested Tk200 crore in manufacturing Gree ACs over the past three years. To meet growing demand, we plan to invest an additional Tk500 crore in the next three years, EML’s Deputy Managing Director Nurul Afser says
Highlights:
- The new investment will be made over the next 3 years
- The company already invested Tk200cr in Gree AC manufacturing in the last 3 years
- Gree AC sales rose from 16,000 units in 2016 to over 2 lakh units in 2023
- Gree aims to increase annual sales to 5 lakh units within five years
Electro Mart Limited (EML), one of Bangladesh's largest electronics and home appliance companies, announced plans to invest Tk500 crore over the next three years to expand its air conditioner (AC) manufacturing capacity, particularly for the Gree brand.
The announcement was made during a press conference at The Westin, marking the visit of Kevin Bai, assistant president of Gree, a Chinese electronics giant established in 1991.
Keep updated, follow The Business Standard's Google news channel
"We have already invested Tk200 crore in manufacturing Gree ACs over the past three years. To meet growing demand, we plan to invest an additional Tk500 crore in the next three years," said EML's Deputy Managing Director Nurul Afser, adding that EML currently manufactures all AC components locally except compressors.
Kevin Bai said Bangladesh's growing importance for Gree is due to the rapid rise in AC demand. "When I first visited Dhaka in 2016, annual sales were just 16,000 units. Now, we sell over 2,00,000 units annually," Kevin told The Business Standard.
He said Gree aims to increase annual sales in Bangladesh to 5,00,000 units within five years.
According to industry insiders, annual AC sales across various brands in Bangladesh reached approximately six lakh units in 2023.
Highlighting the company's focus on sustainability, Kevin said Gree is investing heavily in research and development to reduce carbon emissions from ACs. "If powered by solar energy, an AC produces zero carbon emissions," he added.
Kevin also advised consumers to opt for inverter ACs, which, despite being 10-15% more expensive than non-inverter models, consume significantly less energy.
To expand its footprint in Bangladesh, Gree plans to introduce more home appliances, including refrigerators and microwave ovens.
Gree operates 18 production bases worldwide, including China, Brazil, Bangladesh, Egypt, and Pakistan facilities. According to Kevin, the company holds approximately 37,000 technology patents, including over 16,000 for inventions.
