In a ‘hot’ climate country like India, we have a common meaning or conventional understanding of the term ‘Air-conditioning’ which is ‘Cooling the air’.However, Air-conditioning as per its technical definition is a …. Process of cooling or heating, cleaning, humidifying or dehumidifying air and distributing the air at proper velocity to achieve desired inside conditions. Today, air-conditioning has become a ‘need’ of modern day life in contrast to its earlier perception as a ‘luxury’ 6-8 years back. Although ‘air-conditioners’ or the ‘air-conditioning systems’ are still high energy consuming devices, certain facts like increase in the purchasing power of people with the economic growth in the India , government initiatives like lowering taxes and duties ,liberalization of fiscal policies in terms of foreign direct investment FDI etc. has given a boost to the industry and as a result, the industry is expected to grow at Rs. 38,000 Crore by the end of 2012. Estimate , from Financial Report 2008 : Blue Star Limited.