Concepcion Industries eyes listing in 2 years

MANILA, Philippines - Concepcion Industries Inc., a homegrown maker of airconditioners, refrigerators and small appliances, is eyeing to list in the local bourse within two years.

The company’s plan is hinged on the continuous growth of Concepcion-Carrier Airconditioning Co. (CCAC), which will spend P200 million this year to expand output and further tap the export market.

“In about two years we are looking to list. It will be the mother company that will list, Concepcion Industries,” said Raul Joseph Concepcion, president of Concepcion Industries and chief executive of CCAC.

“It would carry the whole appliance of Concepcion Industries, the refrigeration, airconditioning and small appliances like electric fans and even washing machines,” he said.

Concepcion Industries, founded in December 1961, manufactures and markets electrical appliances.

Concepcion said the company will likely list through an initial public offering (IPO).

“One of the goals moving forward is to be able to have that ability for the people to come in and come out of the market. That will make sure this company will progress over time,” he said.

The current management of Concepcion Industries is already the family’s third generation.

But majority of the parent firm’s plans depend on the continuous expansion of CCAC, a joint venture with US firm Carrier Corp.

“What we want to do is make sure when we list that we are a very strong company,” Concepcion said.

To date, the company’s production plant in Laguna produces 300,000 to 400,000 airconditioners per year.

“Usually, every year we spend P100-200 million for capital expenditures. About P200 million [this year], it will increase the capacity by 15 to 20 percent,” Concepcion said.

The P700-million production complex started commercial operations in 1995.

The company behind airconditioner brands Condura, Kelvinator and Carrier is looking at taking advantage of high demand for exports.

“Ideally what we would like is 50 percent of revenues from exports and 50 percent from the domestic market,” Concepcion said.

Last year, exports accounted for 15-20 percent of CCAC’s roughly P4 billion total revenues. CCAC targets P4.5-5 billion in total revenues this year given higher demand.

Airconditioners of CCAC are sold in countries like Argentina, Brazil, Hong Kong, Australia and Malaysia.

Concepcion said the company aims to grow its exports volume 10-fold in the next decade.

“One of the ways we would be able to really compete in this marketplace is to have scale,” Concepcion said.

To date, CCAC corners roughly 40 percent of the local market for airconditioners. The firm is aiming to reach a share of 50-55 percent in the P10-billion local market for airconditioners.

CCAC launched yesterday its Condura Extreme airconditioners that claim to withstand extreme weather conditions in the country like scorching temperature, high humidity and dust and pollutions through its Durakote coating system.