Daikin Airconditioning India plans to become a USD 2 billion firm in the next three years, having passed the USD 1 billion mark in FY23, according to Chairman and Managing Director Kanwaljeet Jawa. For the fiscal year ending 31 March 2023, Daikin India had a revenue of Rs 8,860 crore.
According to Jawa, the corporation sees India as its “future treasure” and expects it to double to USD 2 billion (approximately Rs 16,350 crore) in the next three years.
Daikin India is now the second company in the cooling industry to surpass the USD 1 billion mark, following Tata group firm Voltas, which posted a total income of Rs 9,667 crore for FY23.
When asked about this, Jawa responded, “Yes, we are now a billion-dollar company. We now have market leadership in every segment in which we operate, including VRV, chillers and room air conditioners.”
The company has so far invested Rs 2,300 crore in India as a wholly-owned subsidiary of Japan’s Daikin Industries, a renowned global maker of commercial and residential air conditioning equipment.
“We are considering India in the long term. We have plans to make India a manufacturing hub for Daikin in the Middle East and Africa,” added Jawa.
Jawa stated that Daikin India’s contribution to the parent worldwide corporation is still in the single digits.
“I believe India will be a future treasure for Daikin. We may be modest, but with the kind of expansion approach we have…” he remarked, adding, we are now connecting our growth strategy with our worldwide strategy.
Daikin India currently generates 70 per cent of its revenue from residential (room AC), 20 per cent from VRV (variable refrigerant volume AC systems) used in large workplaces and the remaining 10 per cent from commercial enterprises such as projects, etc.
“In the last 13 years, we have grown from Rs 292 crore to Rs 8,860 crore,” said Jawa, adding that we see a good future for our India business and hope to surpass USD 2 billion in the following three years.
Daikin India expanded by about 140 per cent in the previous fiscal year, he added.
Jawa anticipates strong growth in the cooling market across all segments, from residential to commercial and projects, owing to the low penetration level.
“India is now at the explosion stage and the entire AC industry’s roadmap is quite bullish. There has been a significant increase in component manufacturing in India,” stated Jawa.
He anticipates “ten times growth in the next ten years” for the Indian AC business. With the current macroeconomic situation and the industry’s growth with government assistance, “big growth” is projected.
Daikin is the largest investor in the government’s Production Linked Incentive (PLI) Scheme for promoting domestic air conditioner manufacture.
It is establishing its third manufacturing facility in India in Sri City, Andhra Pradesh, where it will produce air conditioners and critical components such as compressors.
“We will start commercial production before the end of this year,” he stated, adding that we will start manufacturing first compressors and then air conditioners.
Daikin’s capacity for room airconditioners would expand to 2.5 units, with a total capacity of 6 million compressors, he said.
Furthermore, Daikin India is investing in R&D, AI & IoT and skill development through the Daikin Japanese Institute of Manufacturing Excellence.
“Our growth is not solely in manufacturing, but also in other areas of innovation,” he explained.
Daikin India operates three manufacturing plants, 15 sales offices and five mother warehouses.
