Daikin Air Conditioning India expects to double its business to USD 2bn (around Rs 16,350 crore) in the next three years. Daikin India is now the second company operating in the cooling space to cross the USD 1bn milestone, after Voltas.
The company, which is a wholly-owned subsidiary of Japan’s Daikin Industries, has so far invested Rs 2,300 crore in India. Its expansion plans of making India a manufacturing hub is strategic to its objectives of catering to the Middle East and African markets, which also aligns with its global strategy.
Daikin India clocked a turnover of Rs 8,860 crore for FY23. Its India plans include VRV, chillers, and room air conditioner (AC) segments. It derives 70% of its revenue from residential (room AC), 20% from VRV (variable refrigerant volume AC systems) used in large offices, and 10% from commercial businesses.
Based on the supportive environment for component manufacturing in India, the manufacturer of commercial and residential air conditioning systems expects 10 times growth in the next 10 years for the Indian AC industry.
Daikin is the largest investor under the government’s production linked incentive (PLI) scheme for the promotion of domestic manufacturing of air conditioners. The company is setting up its third unit in India in Sri City, Andhra Pradesh where it will manufacture ACs and compressors and may start commercial production this year.