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VRF are consider to be the latest technology reform in HVAC industry. It is Variable Refrigerant Flow. The mechanism is some what like Split ac but with one Out Door Unit, we can connect multiple indoor Units. Best technologies in energy conservation so far. It is best suited to get maximum utilization with less Space and less power consumption.
Whereas package units basically used where we want to put more of fresh Air and make the purity of Air to the standard level. Such as Hospitals, Labs etc. It can be design on Total fresh Air (TFA) concept also.
Mounted on same frame, the evaporator is connected thru ducting to transfer chilled or conditioned Air to the area to be conditioned. Easy to maintain and can be used to large capacities areas