Development of Airconditioning Industry in Pakistan

Engr. Anwer Saadat

The Author

Engr. Anwar Saadat is a registered Professional Engineer and Principal of A. Saadat & Co., Consulting Engineers. He has been associated with HVACR field since 1950 and practicing as a Consulting Engineer since 1962. He is B.Sc Honours (Engineering) from the Punjab College of Engineering & Technology, Lahore and was awarded 2 year scholarship of the British Industries Federation in 1952. During 1952-58, he completed a post graduate course in HVACR Engineering from the National College of HVR&F Engineering, London and then worked with HVACR equipment manufacturers in UK, Belgium and USA. On return to Pakistan, he worked with Jaleel Brothers Ltd., one of the leading HVACR contractors. In 1962, he started his firm A. Saadat & Co., who have been associated as Consulting Engineers with many notable HVAC projects in the country.

The history of development of Airconditioning and Refrigeration industry in Pakistan is similar to the history of the country. It virtually started from a scratch in 1947. There were alternate periods of rapid development and setbacks. It has shown significant progress but much more could have been done, and of course, still remains to be done.

Before independence, there were hardly and Airconditioning installations based on mechanical refrigeration in the parts which opted for Pakistan. In those days, the industry virtually comprised a few cold storage units and a large number of ice plants. As was the case with other branches of commerce and industry, almost all the units were owned by non-Muslims, great majority of whom migrated to India.

 

It also need to be recalled that the second World War had ended only two years earlier. During the war period, it had been difficult to expand and modernize the units. The non-availability of imported equipment from UK and USA during the war period had given impetus to the development of local industry. There were two foundries and workshops in Lahore which were manufacturing slow speed ammonia compressors and other components of ice plants and cold storage units to meet the requirements. It was in the background that a few entrepreneurs started  dealing in AC&R equipment and contracting as a part of their other business.

 

The limited acceptability of Airconditioning in those early years can be brought out by the fact that cost of a window model unit in 1951 was Rs. 1,300 but after considerable efforts it was difficult to sell even 20 units in a summer season. In 1950, Government decided to establish a bank note printing factory near Karachi. The high standard of printing naturally required control of temperature and humidity which was only possible with Airconditioning of production areas although the cost appeared to be very high to the Factory Management. The 400 TR (ton refrigeration) capacity Airconditioning plant was by far the biggest in the country at that time. It is creditable that a Pakistani company secured the order in competition with a foreign firm and successfully installed the plant.

 

Even in those days of limited Airconditioning acceptability, hotel owners were wise enough to realize that creation of comfortable environment with Airconditioning was a good investment to attract clients. Karachi Broadcasting Studios (which have to be totally closed to eliminate external sounds) were the first Broadcasting Station of Radio Pakistan to be Air-conditioned with a plant of 60 TR capacity.

 

Another expect of environment control is worth mentioning here. In mid forties, generally the economists were critical of the economic viability of Pakistan. One of the arguments was that Punjab and Sindh might grow cotton but the Textile Mills would remain in Bombay because both the former provinces were too hot and dry for spinning and weaving processes. Their blind prejudice could not visualize the possibility of ambient control within the factories. This is exactly what happened. Dozens of textile factories were established in the country in fifties. Economical evaporation cooling humidification systems were installed for the production areas. Very soon the country was not only self-sufficient in cotton textiles but became one of the major exporters in the world with better quality products.

 

The acceptability of Airconditioning dramatically changed within 10 years. Window model and packaged type airconditioners became popular for homes, offices, hotels, cinemas, etc. By 1956, the price of a window model had increased to Rs. 5,000 but hundreds were sold in a summer season without much effort. Critical process industries, such as pharmaceutical, realized the necessity of Airconditioning their production areas to ensure quality of products. Glaxo Laboratories Ltd., were the first pharmaceutical company to install a central type airconditioning plant for their Karachi factory.

 

Many multi-storey offices and commercial buildings were being constructed but the concept of installing central airconditioning systems had not been accepted by the owners. In this connection, lead was given by State Bank of Pakistan. In 1956, the Architect of Head office building at Karachi strongly recommended central airconditioning systems for the proposed building. Detailed studies were made regarding the benefits of airconditioning, including greater staff efficiency, reduced building, furniture and office equipment maintenance costs by elimination of dust, reduced noise level, better paper handling, etc. Nevertheless, the pros and cons were discussed for two years before it was decided that the building should have central airconditioning system. It is a matter of satisfaction that the work of design, supply and installation of the airconditioning system was entrusted to a Pakistani Organization and engineers. In 1960, the Government decided to build new capital city of Islamabad. During preliminary planning stages, capital Development Authority has two choices for the proposed office buildings. Fist choice was to stick to old style construction with high ceilings and large size office spaces so as o ensure a degree of comfort with natural ventilation. Alternative was to design buildings with low ceilings and compact work spaces and ensure efficient and comfortable working conditions for all the staff (not high ups only) by having central airconditioning systems. Again detail studies were made. The savings in the building costs, land, infrastructure, roads and services, better staff efficiency and related factors were taken into account. Ultimately a decision was given in fovour of the compact buildings with airconditioning systems.

 

The public opening of State Bank of Pakistan head office building in November 1961, followed by the above decision of Capital Development Authority ensured an entirely new concept in the design and construction of multistory office and commercial buildings in the country. The prospective building owners realized the advantages of central airconditioning system which were no longer classified as a luxury but meant a better return on investment and also attracted better tenants.

 

The demand of airconditioning was also rapidly growing for hotels, hospitals, cinemas, television station, radio broadcasting and transmitter stations, Telecommunication Buildings, Industrial Units with special processes requiring ambrient control, etc.

 

The sudden impetus in the sixties in the demand of large size airconditioning plants was a challenge to Pakistani Engineers and Engineering contracting firms but they proved equal to the task and by and large their performance was indeed creditable.

 

It is regrettable that one vital branch of this field, namely local manufacturing, was not able to take a head start and make use of the rapidly increasing demand of the 60s. One important reason was that development of local manufacturing involved not only technical talent but also financing. In a developing country, financing capital is in short supply. Consumer goods and similar industries give better and earlier return on investment and therefore attract the available capital. In the 60s, there were also procedures of official sanctions and permits. AS&R industry was virtually at the bottom of such official lists and fund allocations.

 

Much has been achieved in local manufacturing field during last 2 decades as described below. However, almost all the credit goes to comparatively young professionals who had little capital but talent and strong determination. They indeed overcame heavy odds including strong bureaucratic prejudice against local equipment, to establish forward looking local airconditioning and related equipment manufacturing units which are increasingly meeting the local demand.

 

The first small venture was in early 60s in the local manufacture of air devices, fans and small cooling towers by a firm Thermce Engineering Co., established by two young Engineers M/s Ikhlas Aziz and Shamim Allawala who gave up “safe jobs” for his risky

Venture. Today their product range is much greater, of the highest quality and are mentioned as a reference guide for others.

 

The most important effort in local manufacturing was due to “back to the wall” situation for 3 talented brothers M/ s Ashiq Ali, Sadiq Ali and Mohammad Siddique. In 1968, they decided that enough of life had been spent in serving others, and started a manufacturing workshop with hardly any capital in hand. The firm was named S.A. Brothers (brand name Sabro). From the beginning, they decided not to associate with a foreign brand but develop own equipment to suit local operating conditions. They have been very successful. Their remarkable achievement is developing of machine tools and computerized production machinery with in their tools developing workshop and by making use of talented vendor workshops of the Punjab’s industrial belt. The eldest brother Mr. Ashiq Ali has God-gifted insight when it comes to developing new machine tools and production machinery. He could have easily become the head of a big tool making industry in any developed country. They are dedicated to maintain quality, affect further improvements, increase the range and widen their exports. They are manufacturing full range of mini split airconditioners, air cooled and water cooled packaged airconditioners, airhandling units, fan-coil units and reciprocating compressor type air and water cooled water chillers. They are exporting their mini split airconditioners. Apart from compressors and automatic controls, all other components are manufacturered by them.

 

In 1982, Arshad, Amjad, and Abid (P) Ltd established a sister concern Pakistan Airconditioning and Refrigeration Corp (P) Ltd., for manufacturing airconditioning equipment by signing a technical collaboration agreement with Daikin of Japan. Initially they started assembling window model airconditioners then installed production machinery to start making most of the components including finned coils. The range was then increased to include air cooled packaged airconditioners and mini split airconditioners. They are making all efforts to manufacture more components locally, increase the range of products and ensure the high quality associated with Daiken.

 

Another 3 brothers, M/s. Ghulam Mohiuddin, Mohammad Samiullah and Mohammad Kalimullah of Habibullah Associates, a leading AC&R contractor, established Habibullah Industries to manufacture equipment in collaboration with leading USA and French manufacturers. Their range is mini split airconditioners, packaged type airconditioners, airhandling units, fan-coil units and reciprocating compressor type water chillers.

 

The Faruque Group, in keeping with the traditions and ideals of the founder Chairman (late) Mr. Ghulam Faruque, had established in 1991, Greaves airconditioners Ltd. From the beginning, they started manufacturing, cooling coils and other components, importing only essential components like compressors and automatic controls. Within 3 years they have significantly increased their range of different types of packaged airconditioners up to 20HP capacity and have plans to add more products.

 

Apart from Daikin, other brands of window model airconditioners are locally manufactured. In fact lead was given by Domestic Appliances Ltd., a public sector company, who started local assembly and marketing in 1974. Soon afterwards local production of other well known brands was started such as Philco, National, Climax and PEL.

 

Following medium size organizations have also made noteable contribution in the manufacturing field. A talented entrepreneur is making finned type cooling coils under the brand name Breeze Industries, again with locally manufacturered machine tools and equipments. The finned coils which are one of the main components are supplied to the manufacturers of AC&R equipment. Mehran airconditioning Co., established in 70s, is manufacturing air devices, fans, airhandling units and cooling towers. Engatech International is manufacturing fans, airhandling units and fan coil units. Air Control Engineering is manufacturing a wide range of fans and cooling towers. A new comer is Petal Industries who are marketing mini split units, packaged airconditioning units and fan coil units.

 

In conclusion, it is emphasized that the local manufacturers should join hands to establish an Equipment Performance Testing Laboratory and develop quality criteria for collective benefit. These require considerable investment and given our ground realities, are beyond the means of a single manufacturer. This joint effort will help every body to ensure quality control and better serve the consumer which should be the ultimate aim of all industries.