Jamshyd N. Godrej says rising cooling demand will create opportunities across efficient appliances, heat pumps, building technologies and energy management
India’s rising cooling requirements are opening up a significant market for energy-efficient appliances and technologies, as higher temperatures, expanding urbanisation and new sources of electricity demand reshape how consumers and businesses use energy. “Cooling is going to be very, very critical,” said Jamshyd N. Godrej, Chairman & Managing Director, Godrej & Boyce, at the IEEMA Annual Convention 2026 in Mumbai.
The opportunity extends beyond the rapid expansion of data centres, with cooling increasingly becoming a broader requirement across homes, commercial buildings and industrial facilities. “It’s not just because of data centres,” Godrej said, pointing to the wider implications of a warming world for cooling demand.
Energy efficiency is simultaneously becoming more visible in consumer purchasing decisions, particularly for products such as home appliances and ceiling fans. Efficiency ratings have moved from being largely a regulatory consideration to becoming part of how products are marketed and differentiated. “For consumers, this has become a very, very important aspect,” Godrej said.
The shift has been supported by efficiency standards and programmes implemented over the years, which have made consumers more familiar with comparing products based on their energy performance. “People only talk of energy efficiency,” Godrej said, referring to the prominence it has gained in advertisements for appliances and fans alongside design and appearance.
Beyond Conventional Cooling
The next phase of the market could extend beyond conventional air-conditioning technologies. Heat pumps, which can transfer heat rather than generate heating or cooling directly, have applications across buildings and other energy-intensive uses but remain relatively underutilised in India. “Heat pumps are something that we have not taken seriously for a long time,” Godrej said.
Greater deployment of such technologies could reduce energy requirements even as cooling demand rises, creating opportunities for appliance manufacturers, electrical equipment companies and technology providers. “Heat pumps can be transformative for energy efficiency and energy use,” Godrej said.
Building materials could become another part of the cooling ecosystem as companies look beyond appliances to reduce the amount of heat entering buildings in the first place. Reflective coatings and other technologies that improve the thermal performance of building envelopes can lower the cooling load required indoors. “Reflective coatings have really transformed the way you look at buildings and manage heat within the envelope,” Godrej said.
This could broaden the consumer cooling market from individual appliances towards a combination of efficient equipment, building technologies and energy management solutions. “There are many, many applications where heat pumps can make a big difference,” Godrej said.
Innovation Opens A Wider Consumer Market
The scale of the opportunity also creates room for startups developing new cooling, efficiency and building technologies, particularly as conventional products increasingly incorporate electronics, sensors and smarter energy management. “These startup ideas actually can be transformative for everyone,” Godrej said.
For established businesses, the challenge will be identifying technologies developed by younger companies and finding ways to deploy them commercially at scale. “How to embrace the ideas that come out of startups and really take those forward” will become increasingly important, Godrej said.
India’s experience with energy efficiency suggests that higher energy costs can accelerate adoption as households and businesses place greater value on reducing electricity consumption. “Higher energy costs do, it makes you more efficient,” Godrej said.
As cooling becomes a larger component of electricity demand, the retail opportunity is therefore likely to move beyond selling more cooling equipment towards selling products that deliver the same comfort with lower energy consumption. For appliance makers, building technology companies and startups, Godrej’s central proposition is straightforward: “Efficiency and sustainability are at the top of all that.”
