New Delhi: Air conditioner manufacturing company daikin Airconditioning India is expected to become a $2 billion company in the next three years, after crossing the $1 billion milestone in FY23, said the Chairman and Managing Director Javanese Kanwaljit,
Daikin India 8,860 crore for the financial year ending March 31, 2023.
Jawa told PTI that the company is looking at the Indian business as a future treasure and expects it to double to $2 billion (about Rs 16,350 crore) in the next three years.
Daikin India is now the second company operating in the cooling space to cross the $1 billion milestone after a Tata group firm LapWhich had reported a total income of Rs 9,667 crore for FY23.
When asked about this, Jawa said, “Yes, we are now a billion dollar company. We now have top shares in every segment that we operate in – VRV, chillers and room air conditioners.”
The company, a wholly owned subsidiary of Japan’s Daikin Industries, a leading global manufacturer of commercial and residential air conditioning systems, has so far invested Rs 2,300 crore in India.
Jawa said, “We are looking at India in the long term. We have expansion plans here to make India a manufacturing hub for Daikin for the Middle East and Africa markets.”
On Daikin India’s contribution to the parent global company, Jawa said it is still very small and still in single digits.
“I would say India is the future treasure for Daikin. We may be small but the kind of expansion plan we have…” he added, “We are now aligning our growth strategy with our global strategy “
Currently, Daikin India derives 70 per cent of its revenue from residential (room AC), 20 per cent from VRV (Variable Refrigerant Volume AC systems) used for large offices, and the remaining 10 per cent from commercial businesses such as projects etc. is received.
“In the last 13 years, from Rs 292 crore, we have become a Rs 8,860 crore company,” Jawa said. ,
He said that Daikin India has grown by about 140 per cent in the last financial year.
Jawa expects good growth across all segments in the cooling space – from residential to commercial and project business – as the penetration level is very low.
Jawa said, “Now India is in the phase of explosion and the roadmap of the entire AC industry is very bullish. Component manufacturing has started in India on a large scale.”
He expects “10x growth in the next 10 years” for the Indian AC industry. With the current macroeconomic situation and the development of the industry with the help of the government, “huge growth” is expected.
Daikin is the largest investor under the government’s Production Linked Incentive (PLI) scheme to promote domestic manufacturing of air conditioners.
It is setting up its third unit in India at Sri City, Andhra Pradesh, where it will manufacture critical components such as air conditioners and compressors.
“Before the end of this year, we will also start commercial production,” he said, adding, “We will first start manufacturing compressors and then air conditioners.”
This will increase Daikin’s capacity for room air conditioners to 2.5 million units and compressors to 6 million units, he added.
In addition, Daikin India is also investing in R&D, AI and IoT, and skilling through the Daikin Japanese Institute of Manufacturing Excellence.
He said, ‘Our growth is not only in manufacturing but also in other areas of innovation.’
Daikin India has three manufacturing facilities, 15 sales offices and 5 mother warehouses.
Daikin India 8,860 crore for the financial year ending March 31, 2023.
Jawa told PTI that the company is looking at the Indian business as a future treasure and expects it to double to $2 billion (about Rs 16,350 crore) in the next three years.
Daikin India is now the second company operating in the cooling space to cross the $1 billion milestone after a Tata group firm LapWhich had reported a total income of Rs 9,667 crore for FY23.
When asked about this, Jawa said, “Yes, we are now a billion dollar company. We now have top shares in every segment that we operate in – VRV, chillers and room air conditioners.”
The company, a wholly owned subsidiary of Japan’s Daikin Industries, a leading global manufacturer of commercial and residential air conditioning systems, has so far invested Rs 2,300 crore in India.
Jawa said, “We are looking at India in the long term. We have expansion plans here to make India a manufacturing hub for Daikin for the Middle East and Africa markets.”
On Daikin India’s contribution to the parent global company, Jawa said it is still very small and still in single digits.
“I would say India is the future treasure for Daikin. We may be small but the kind of expansion plan we have…” he added, “We are now aligning our growth strategy with our global strategy “
Currently, Daikin India derives 70 per cent of its revenue from residential (room AC), 20 per cent from VRV (Variable Refrigerant Volume AC systems) used for large offices, and the remaining 10 per cent from commercial businesses such as projects etc. is received.
“In the last 13 years, from Rs 292 crore, we have become a Rs 8,860 crore company,” Jawa said. ,
He said that Daikin India has grown by about 140 per cent in the last financial year.
Jawa expects good growth across all segments in the cooling space – from residential to commercial and project business – as the penetration level is very low.
Jawa said, “Now India is in the phase of explosion and the roadmap of the entire AC industry is very bullish. Component manufacturing has started in India on a large scale.”
He expects “10x growth in the next 10 years” for the Indian AC industry. With the current macroeconomic situation and the development of the industry with the help of the government, “huge growth” is expected.
Daikin is the largest investor under the government’s Production Linked Incentive (PLI) scheme to promote domestic manufacturing of air conditioners.
It is setting up its third unit in India at Sri City, Andhra Pradesh, where it will manufacture critical components such as air conditioners and compressors.
“Before the end of this year, we will also start commercial production,” he said, adding, “We will first start manufacturing compressors and then air conditioners.”
This will increase Daikin’s capacity for room air conditioners to 2.5 million units and compressors to 6 million units, he added.
In addition, Daikin India is also investing in R&D, AI and IoT, and skilling through the Daikin Japanese Institute of Manufacturing Excellence.
He said, ‘Our growth is not only in manufacturing but also in other areas of innovation.’
Daikin India has three manufacturing facilities, 15 sales offices and 5 mother warehouses.