As India prepares for a record-breaking summer in 2026, the domestic air conditioning industry has sounded a high-level alarm. Leading manufacturers, including Voltas, Blue Star, and Godrej Enterprises, warned on Monday, March 16, that the intensifying US-Iran war is choking critical supply chains for raw materials and industrial fuels.
The “Brazing” Bottleneck: LPG and Gas Shortages
The most immediate threat to AC production isn’t the components themselves, but the energy required to assemble them. India imports roughly 90% of its LPG from the Middle East, with over 54% of total demand transiting through the now-volatile Strait of Hormuz.
- Production Halts: PG Electroplast and Amber Enterprises have reported that restricted LPG supplies are disrupting the “brazing” process—a critical step where copper tubes are joined.
- Force Majeure: Major gas suppliers like Petronet LNG have already declared force majeure, leading to a 50% reduction in gas supply for some industrial clusters in Gujarat and Maharashtra.
- Operational Shifts: Epack Durable is reportedly exploring expensive alternatives to traditional gas-based brazing to keep assembly lines moving, though this is expected to increase production costs by 12–15%.
Petrochemical Scarcity: Polymers and Plastics
Beyond fuel, the conflict has paralyzed the flow of naphtha feedstock, causing a “structural repricing” of essential chemicals.
- Plastic Components: Scarcity of Polypropylene and Polystyrene—key for AC vents, blades, and internal housing—has seen prices surge by 35–60% in the first two weeks of March.
- Metals Inflation: The price of copper, a vital ingredient for cooling coils, has reached multi-year highs as logistics surcharges and insurance premiums for Gulf shipments skyrocket.
Impact on Consumers: The “Summer of 2026” Price Hike
While demand is expected to be 20% higher this year due to an early March heatwave, consumers will likely face a double whammy of limited stock and higher prices.
| Brand / Manufacturer | Estimated Price Hike (Feb–April 2026) |
| Blue Star | 8% – 10% (Already implemented) |
| Voltas / Daikin | 5% – 12% (In phases) |
| LG / Haier | 7% – 15% (Projected) |
| Generic/Regional Brands | 10%+ (Subject to component availability) |
Industry Outlook
Despite the chaos, some executives remain cautiously optimistic. Mukundan Menon (MD, Voltas) noted that recent localization efforts under the PLI scheme have insulated some players from total collapse. However, he admitted that a prolonged conflict beyond April could lead to a “dry summer” where demand vastly outstrips the industry’s ability to supply finished units.
The government has responded by invoking the Essential Commodities Act, 1955, prioritizing gas supply for homes and transport, which unfortunately places “non-essential” manufacturing like HVAC further down the priority list.
