Wednesday, 06 November 2024

Collaboration as a conscious business strategy

Madhanagopal Chandrakumar, CEO, AHI Carrier, speaks on his life journey and on the unique experiences that shaped his professional outlook and approach to engineering and business leadership

  • By Content Team |
  • Published: February 16, 2024
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The early days

I was born in Mannargudi – my mother’s native place – in the southern Indian state of Tamil Nadu, in the year 1975. My father, a mechanical engineer, worked with the prominent industrial giant, E.I.D. Parry and was posted to various parts of the state, and we, as a family, travelled with him.

I spent most of my boyhood in Cuddalore, also in Tamil Nadu, because E.I.D. Parry had established India’s first sugar plant there – to be precise in a place called Nellikuppam, which was a town near Cuddalore.

My father, my role model, transitioned from Engineer to Chief Engineer at the sugar plant – he would eventually retire from the company as the Head of the Plant. I grew up witnessing his passion for work while tagging along with him to the factory, which was a hub for people from all walks of life, including farmers, who brought their freshly harvested sugarcane in trucks, and his colleagues, ranking from his fellow engineers to the various managers from different departments.

It was a place where people with different functions came together to produce something very sweet. However, what goes on behind the scenes is intense, and my father mirrored the mood through sheer hard work and unyielding effort to ensure the smooth functioning of the factory from the time he stepped into the premises to the end of the day’s work. By doing so, he earned my respect and that of his colleagues and subordinates. His nature of work and the manner in which he went about it not only inspired me to seek a career in engineering but also shaped my primary idea behind a job – I wanted to be in a profession where you are respected by people.

Madhanagopal Chandrakumar of AHI Carrier
Madhanagopal Chandrakumar

While the emotional imprint of wanting to be an engineer was strong, so was the technical exposure. I was just 13, when I first set foot into the factory and got to observe firsthand how mills operated, understand pumping systems and witness the sugarcane crushing processes, which provided valuable insights. And it helped that my father was always nearby to explain concepts and encourage me to ask challenging questions and, broadly speaking, nurture critical thinking.

It was only natural I joined engineering college – Alagappa Chettiar College of Engineering, in Karaikudi, in Tamil Nadu – after passing out of high school. It was an amazing time, for my father guided me throughout my course, introducing each subject, explaining its relevance and emphasising the importance of associated labs. He continued to provide educational materials and insights into the industry through the limited resources of the time, like traditional snail-mail, and my engineering instincts were cultivated through hands-on exposure. My father was the mentor who instilled in me the capacity to think critically and ask important questions about the processes and systems I encountered.

Getting into the HVAC industry

I graduated with a bachelor’s degree in Mechanical Engineering in the year 1996. Things moved in a hurry, thereafter – I joined the MBA programme at the School of Management, in Pondicherry University, from where I graduated in 1998, and immediately earned a placement with Blue Star.

During that period, Blue Star was one of the leading names in the air conditioning sector, and many engineers during that era, who began their career in air conditioning, must have started out at the company. However, at the time, I believed I would pursue a job in the management sector following my MBA, and I never thought I would take up an engineering job. But when you connect the dots, the story becomes apparent and will return to my Mechanical Engineering base.

Bluestar at the time was led by competent individuals with a solid strategic vision for developing a channel business in the package air conditioning division of the company. I joined Blue Star as a management trainee at this opportune time. My initial impressions of the company were positive, and it was evident that Blue Star was focused on building a robust sales team as well as a proficient service team to achieve its objectives and business goals.

Traditionally, service operations and equipment-related work typically go unnoticed by executives or managers. In a corporate setting, service personnel are usually not seen engaging in conversations with higher-level management within the confines of an office. Their interactions are often limited to receiving service calls, performing tasks on equipment located on rooftops or in less visible areas, and leaving once the job is done. The objectives of Blue Star were to change this perception, highlight the value of capital invested in service operations and make the service industry more visible within the organisation. As a result, the company infused a marketing flair into the approach and recruited management trainees with a mechanical engineering and management background. This strategy was to present a customer-centric perspective and revolutionise the company’s market presence, and it was implemented not only for sales but also for the service division.

I was among the first management trainees to join the company in Chennai, the state capital of Tamil Nadu, in 1998, and was assigned to the package air conditioning division; Chennai was the national headquarters for the division. At the same time, B Thiagarajan, who eventually rose to the position of Managing Director in the company, joined as the General Manager of Services. He became my mentor, and our relationship continues to this day. I have consistently stayed in contact with him, and over the subsequent years, we have collaborated on numerous engaging assignments.

From package to central air conditioning systems

After completing a year of training, I was assigned to the southern Indian state of Kerala to lead the Package Air Conditioning Service Division. This transition occurred after a year of successes and achievements, and I attribute a significant part of it to the invaluable guidance and mentorship I received from the organisation. I also faced challenges while working in a management role, mainly when collaborating with individuals with extensive experience and technical knowledge. Despite my engineering background, I wasn’t a trained service professional, and I was in a managerial role.

Navigating the shift from a support function to a business function brought challenges and opportunities. In service, it is a multifaceted business function within air conditioning. The role involves overseeing various aspects, such as managing sales, leading people with diverse skills and transitioning the service from a support to a business focus. This transformation demanded connecting with people, comprehending their work, influencing positive change and fostering business growth.

The service function proved to be one of the most comprehensive aspects of the business. It required managing multiple facets, including sales, personnel and various technical aspects. From interacting with sales executives to handling inventory and managing P&L, the role provided exposure to all elements of a fully integrated business.


A year later, in March 2000, I moved to Hyderabad – then part of the southern Indian state of Andhra Pradesh and today the capital of the southern Indian state of Telangana – as the Head of Package Air Conditioning Service, for Andhra Pradesh. I got married the same year and lived in Hyderabad for the next two years.

In 2002, I moved to the Central Air Conditioning Division of the company, specialising in chillers and air-handling units. Amid extensive modernisation and organisational changes, I had to take charge immediately due to my familiarity with the market. This move marked a shift from the Package Air Conditioning Division, emphasising a higher level of engineering expertise for central air conditioning. I now faced the challenge of overseeing larger central air conditioning systems, as previously, I had been managing package units, ducted splits and VRF systems.

Unlike the previous channel partner setup, the Central Air Conditioning Division required a more direct approach, with company technicians servicing major clients like hotels, pharmaceutical companies and industries. Immediate and crucial interactions were essential, as any malfunction could lead to crises in critical establishments. This shift pushed me outside my comfort zone, demanding adaptation to a different engineering and customer interaction level.

At the time, in the Central Air Conditioning Division, the service approach involved direct service technicians. In contrast, in the Package Air Conditioning Division, service calls would land in the office, and a dealer would be assigned to attend the call. Handling service calls for places like hotels brought a different intensity and interaction, often involving crisis management. The nature of issues could range from simple component replacements to complex challenges like adjusting capacity for a growing number of guests or addressing pipeline leaks that required strategic shutdowns.

This role demanded technical expertise, planning and organisational skills, often requiring coordination with various teams. Over the two years in this division, I honed crisis resolution, planning and effective team coordination skills, providing valuable experiences that contributed to my professional growth.

Coming to the UAE and AHI Carrier

Until 2014, I worked with the same company in India, holding various roles, including Southern Regional Head for Service in Bengaluru, the capital city of the southern Indian state of Karnataka. During 2007 and 2008, Blue Star initiated a division focusing on air, energy and water services across India. This involved promoting value-added services beyond traditional agreements, such as modernisation and energy-efficient solutions. One significant aspect was the launch of an Energy and Green Building Service, where the company built capacity by certifying over 25-30 professionals as energy auditors. This team conducted energy audits nationwide, contributing to the energy management and green building sectors. Furthermore, in 2008-2009, the company established a facility management services division.

In 2010, I transitioned to a new role, overseeing key accounts management, nationally. Later, in 2012, I moved to the products division, specifically handling chillers and air-handling units for the southern and eastern regions of the country.

In 2013, my family and I decided to explore opportunities abroad. We keenly looked at Singapore, UAE and the United Kingdom to match the career needs of my wife and I, and particularly ensuring that the roles should be in line with what we had been doing, and that they would represent a step up in our respective careers. As if by coincidence, in mid-November of 2013, AHI Carrier approached me to take up an assignment in its UAE office.

I joined AHI Carrier in 2014 and initially served as the Business Development and Marketing Head. In 2015, I gained exposure to Russian and central-eastern European businesses. Over the years, my role expanded to cover global aftermarket business responsibilities, offering insights into various aspects of the company’s operations. In 2020, there was a significant organisational change, and it led to my current role.

AHI Carrier operates in about 100 countries with 22 offices, providing sales and distribution services for Carrier Global Corporation. The company has a diverse workforce from different cultural backgrounds, with factories in the United States, Thailand, China and Europe. As it moves forward, the focus includes addressing global trends, such as digitalisation, analytics, building efficiency and renewable energy solutions.

From 2014 to 2020, I gained diverse experience across various departments, providing me with a comprehensive understanding of different functions. Furthermore, my professional evolution involved transitioning from a national role to an international one. In 2020, a significant organisational change occurred, triggered by my predecessor’s move to a group company. This transition unfolded in July 2020, amidst the challenges of the COVID-19 pandemic.

The period from 2014 to 2020 marked a significant phase of gaining global exposure, involving engagement with approximately 100 countries and operations across 22 offices. AHI Carrier’s stakeholders span continents, with individuals from Europe and factories in the United States, Thailand, Europe and China. As a sales and distribution entity of Carrier Global Corporation, the company’s presence is prominent in the UAE, where the majority shareholder is the local company. This structure underlines the global reach and collaborative nature of operations.

The company is a joint venture, where the majority shareholder is a UAE-based company, Darwish Bin Ahmed & Sons Group. It is a conglomerate, with business interests in construction, automobiles and other investments. The management is from this group and operates as a non-managed joint venture of AHI Carrier.

As a sales and distribution joint venture of Carrier, the company sells Carrier- and Toshiba-branded products in different markets. For example, in the Middle East, Toshiba-branded products are sold, while in Europe – southern Europe, in particular – both Carrier and Toshiba brands are sold. The company sells Carrier and Toshiba residential and light-commercial products in Australia and New Zealand. The commercial products in Africa are mostly Toshiba, and Carrier and Toshiba products are sold in South Africa. The global presence exposes the company to various cultures, time zones and weather conditions, providing valuable experiences and the need to adapt to different market requirements.

In the Middle East, where the company operates, there is volatility and uncertainty in various markets, including Iraq, Afghanistan, Pakistan, Sudan and the Commonwealth of Independent States (CIS) region, with the Ukraine-Russia war a formidable challenge. Despite the uncertainties, geopolitical events and currency fluctuations, the company has developed a robust operating system over the last 25 years to navigate these challenges successfully. The strength of the company is in managing complexity and viewing uncertainties as opportunities to drive change, which have been essential principles. Moreover, the focus on good operating systems and strategic management has allowed AHI Carrier to deliver positive results even in volatile markets.

In 2020, the company faced a significant challenge, with a 15% drop in business globally due to the impact of COVID-19. The immediate goal was to re-strategise and manage the situation. About 80% of resources were moved to low-cost locations, such as India, while maintaining capacity. This helped reduce operating expenses while maintaining operational efficiency. The company successfully navigated 2020 and developed a more streamlined and cost-efficient structure. The company managed to navigate the challenges of 2020 without overspending by leveraging resources in low-cost locations and streamlining operations. This allowed the company to sustain the business and set the stage for growth.

Engineering functions – including application engineering, transactions, service, legal and marketing – were moved to India, consolidating back-office operations. The company also streamlined operations in Europe, focusing on cost efficiency. This approach reduced operating expenses and retained the necessary capacity and knowledge within the company.

Looking ahead, AHI Carrier developed a business plan to grow its business globally. The key focus areas include gaining market share in residential and light-commercial businesses, particularly in response to global trends favouring energy efficiency and refrigerant change regulations. The company also emphasises commercial applied businesses, focusing on Europe and the Middle East. Additionally, it highlights services and parts, emphasising digital connectivity to enhance customer value.

AHI Carrier faced challenges in 2022 due to the Russia-Ukraine war, leading to the suspension of business operations in Russia. With a quick pivot, the company refocused on Europe, particularly southern and central-eastern Europe, aiming to gain market share. The emphasis shifted to decarbonisation strategies and renewable energy projects, such as offshore wind opportunities in the North Sea.

Today, AHI Carrier is actively promoting energy-efficient designs in the Middle East region market, leveraging its engineering strengths. By introducing designs that optimise energy consumption, especially in heating and cooling systems, AHI Carrier aims to drive a shift towards more sustainable and efficient building practices. The goal is to provide solutions that meet comfort requirements and significantly improve energy efficiency. For instance, the company highlighted a system design in heating with a COP of 3.8, compared to a standard system design with an efficiency of around one. By focusing on heat pumps and waste heat utilisation, AHI Carrier aims to achieve higher system efficiencies, contributing to the overall decarbonisation strategy.

The strong emphasis on renewable energy is a pivotal part of AHI Carrier’s strategy, with a focus on getting closer to the market. Considering its developing nature, Africa emerges as a key target for the company’s initiatives. Around 400 million people lack electrification there, presenting a substantial opportunity for electrification initiatives. While there are carbon emissions of approximately two billion tonnes of CO2, the move towards electrification offers the prospect of transitioning to lower CO2 emissions, providing an avenue to leapfrog into profoundly sustainable practices.

Renewable energy emerges as a viable option, and AHI Carrier anticipates nations adopting this approach. Beyond energy solutions, the company is keen on improving building designs and enhancing efficiency from a hedge factor perspective. It has established teams in central-eastern Africa, operating out of Kenya, to implement these strategies. This signifies a shift from traditional operations, now having front-end teams based in central, western and northern Africa. The goal is to introduce and expand these concepts to these markets in Africa.

During the challenges posed by COVID-19, in 2020, AHI Carrier initiated pilots, building on earlier support in central-eastern Africa, specifically with teams based there. This effort has yielded positive progress, with increasing acceptance of the company’s solutions. Notably, the company has introduced the latest technologies, such as inverters, air-cooled chillers, low-GWP-refrigerant-fitted chillers and VRF systems, marking a step forward in commitment to innovative and sustainable practices. In Africa, the demand for large data centres is rising, emphasising the need for efficiency from the outset while aligning with Environmental, Social and Governance (ESG) goals. Early indications suggest strong acceptance of these solutions, particularly evident during seminars, last November. Anticipating widespread adoption, the focus of AHI Carrier is on building and educating this emerging market.

Digitalisation of aftermarket services

The traditional approach to service has been reactive, addressing issues only when breakdowns or faults occur, often relying on manufacturers or service providers. In contrast, industries like automobiles have embraced connected technologies, allowing for proactive monitoring and intervention before potential failures. AHI Carrier is implementing a similar strategy in the case of the company’s large chillers and VRF systems. Products now feature built-in connectivity, enabling them to relay operational data to a central cloud server. Analytics tools applied to this data provide insights, allowing the company to offer services proactively and prevent potential failures.

The ongoing initiative involves connecting more equipment to enhance the system’s intelligence. Starting around 2018-2019, AHI Carrier began piloting these technologies, and as they matured, the company is now actively driving the widespread adoption of connectivity. Additionally, the outbound connectivity solutions platform aids in monitoring building sustainability goals, including health and wellness indicators, like IAQ, as well as energy efficiency. This new platform, from Carrier, is being deployed, contingent upon the foundational aspect of equipment connectivity.

Moving forward, all new equipment sales include built-in connectivity, particularly on the applied side. Simultaneously, there’s a significant effort to retrofit existing equipment with connectivity, serving as an add-on to enhance their capabilities. AHI Carrier provides dongles that can be plugged into the system, connecting through the telecom network to the central cloud server. This service spans around 40-50 countries, adhering to various regulations, globally. Customers can subscribe to these services, which will soon be available on a subscription model. Currently, it is part of the company’s service offerings.

Connectivity as a Service

In the life cycle of equipment, connectivity is prebuilt during the new equipment stage. Connectivity becomes an add-on for existing equipment during the warranty and service stage. AHI Carrier also offers Connectivity as a Service for customers not under the company’s maintenance, encouraging collaboration with original equipment manufacturers. Additionally, the company is deploying outbound platforms, which can provide insights into the sustainability and wellbeing of the building. These two areas will be there, in addition to predicting diagnostics and failures.

Teamwork, collaboration and transformation

I do believe that all of AHI Carrier’s initiatives bear fruit owing to the company’s management ethos. The term ‘collaboration’ is frequently used in management circles, but the emphasis at AHI Carrier lies in collaboration during phases of disagreement or difference of opinion. This approach is driving the ongoing transformation within the organisation. This transformation is not limited to a specific area; it’s a pervasive change. There is recognition that collaboration is a common obstacle to achieving goals, particularly in the face of conflict or differing opinions.

Collaboration is pivotal to executing this strategy effectively. When considering activities, such as opening an office in Kenya, the HR team plays a crucial role in sourcing the right talent, while the admin team facilitates the logistics. Simultaneously, the legal-compliance team ensures all processes align with regulations. This cross-functional collaboration is instrumental in achieving the company’s strategic objectives. Understanding why strategies sometimes fall short, the company acknowledges that resolving differences within the core team is essential. The organisational structure is lightweight, encouraging interaction among all team members. Discussions happen in various settings, including breakout areas and cafeterias, and during walks and informal meetings. The company’s focus is on the work that needs to be done. With 98% of the workforce comprising expatriates, there is a strong sense of awareness of having come together to perform tasks in this location. The essence of the personnel’s time here is dedicated to work. The company strives to align everyone and foster collaboration despite differences in nationalities, cultures and motivations. This alignment is a key objective reflected in the internal goals, such as those under ‘Project Reach’.

Project Reach

AHI Carrier’s strategic initiative, Project Reach, is geared towards doubling the business within a span of five years. The emphasis is not only on the overarching company but also extends to every business segment and entity within the organisation. Each team concentrates on aligning its goals with this ambitious vision. This involves meticulously examining current operations and exploring avenues for growth through brand and channel expansion in various product categories. Utilising engineering designs and innovative business solutions to differentiate ourselves is a key aspect of this strategy.

Global alignment and operating system

Across 22 offices on four continents, the focus is on aligning with the company’s strategy. This alignment is not just a goal but forms the core focus. It involves working cohesively and efficiently, considering the global team’s diverse nationalities, cultures and motivations. This strong focus on alignment and collaboration characterises the company’s operating system.

Influential figures in my life and career

Reflecting on my professional journey, I must acknowledge the impact of key individuals. Initially, my first boss, Mr Thiagarajan, played a crucial role. Equally significant was my father’s influence during the early stages of my career. His impact extended to shaping my strategic thinking, guiding me in approaching business and imparting valuable insights on collaborating with diverse individuals in different cultural settings. This foundation proved invaluable as I navigated various roles, including my current position.

I would also like to acknowledge the contribution of my mother in my growing-up days. I was less confident as a child, and it was my mother’s strong sense that I was special and would make it good in life that helped me through and took care of my emotional wellbeing. This, combined with good friendships I had in my teen years, helped me blossom into a better adult.

While I will not delve into specific details about my parents, I can affirm that like many individuals from supportive families, parental influence extends beyond familial bonds, impacting personal and professional life aspects. Outside of the family, these influential figures play pivotal roles in shaping our perspectives and approaches to various challenges in work and life.

Here at AHI Carrier, my Chairman has been actively engaged in the business, providing invaluable guidance, especially during a decade marked by uncertainty. From the initial challenges posed by COVID-19 to subsequent crises in shipping; geopolitical conflicts; and ongoing supply chain issues, such as the impact of the Red Sea, his guidance has been instrumental in steering AHI Carrier’s global business through these complex scenarii.

My family, my interests

Outside the professional realm, my immediate family consists of my wife, Deepa Narasimhan, and daughter, Shreya. My daughter is pursuing Biomedical Engineering at the University of Toronto, in Canada.

My daily routine includes engaging in physical activities, like running, in which I maintain a target of 15 kilometres per week.

Additionally, I find joy in reading, particularly focusing on self-development and staying informed about global events that impact business. One of my recent reads, Brave New Work, explores transforming traditional work structures into more collaborative and participatory models. The book delves into how companies can succeed by empowering their teams and moving away from hierarchical management styles. The book highlights practical aspects, such as effective delegation and building strategies collaboratively. This resonates with ongoing efforts to foster collaboration at AHI Carrier, on the path to transformation.

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