Firms to use aluminium for making ACs: Vir Advani

Kolhapur: Vir S Advani, deputy chairman of western region of Confederation of Indian Industry (CII), on Friday said the companies manufacturing air-conditioning and refrigeration products are going to shift to use of aluminium reducing the use of copper — given the prices of copper are increasing owing to the metal's demand in data centres. Advani, who is also chairman and managing director of Blue Star, said the companies hiked the prices of the air-conditioners (ACs) because of mandatory improvisation in the energy efficiency. The second reason being hike in copper prices by nearly 18%. The Centre had brought down the GST rates on the ACs from 28% to 18%. But the benefit was short lived as the ACs became costlier from Jan 1.
"The two factors — energy efficiency table charge which is revised every two years and the copper prices — wiped out the GST benefit. The govt has mandated the companies to make the devices energy efficient every two years and accordingly the modifications are required," Advani said."The prices of copper shot from $800 to $1,400 adding in the final cost. The companies are therefore going to shift to aluminium," Advani added.