Air conditioner maker Daikin India aims to become $2 billion company in the next three years.
In FY23, the company surpassed the $1 billion milestone. Chairman and Managing Director Kanwaljeet Jawa shared the expectation for Daikin India's turnover to double to $2 billion.
Daikin India has a turnover of Rs 8,860 crore for the financial year ended on 31 March 2023. The company is looking at India business as its "future treasure" and expects it to around Rs 16,350 crore in the next three years, Jawa told PTI.
"We are a billion-dollar company now. Now we have top shares in every segment which we operate -- VRV, chillers and room air conditioners," Jawa said, reports TOI.
Following Voltas, Daikin becomes the second company in the cooling space to achieve the $1 billion milestone.
The Tata group firm Voltas reported a total income of Rs 9,667 crore for FY23.
Daikin Airconditioning India is a wholly-owned subsidiary of Japan's Daikin Industries, which is a renowned global manufacturer of commercial and residential air conditioning systems.
The company has three manufacturing facilities, 15 sales offices, and five mother warehouses in India.
So far, the company has made investments totaling Rs 2,300 crore in India.
Daikin also plans to invest $5.7 billion in capital expenditures over the next three years to capitalise on the demand for energy-efficient heating in Europe and the growing air conditioner market in India.
This represents a 47 per cent increase compared to the previous three-year period.
"Demand for air conditioners [in India] is expanding more than anywhere else in the world," said President and CEO Masanori Togawa, reports Nikkei Asia.
The number of installed air conditioners in India is projected to quadruple by 2030 compared to the figures recorded in 2020.
Daikin intends to double its production capacity in India by establishing a new plant in the south and is considering another plant in the west.
Furthermore, the company will focus on expanding research and development activities and strengthening its sales network in India.
"We are looking at India in the long term. We have expansion plans here to make India a manufacturing hub for Daikin for Middle East and Africa markets," Jawa said.
Daikin India currently derives 70 per cent of its revenue from residential air conditioning, 20 per cent from VRV systems used in large offices, and the remaining 10 per cent from commercial projects, Jawa informed.
The company has experienced significant growth, going from Rs 292 crore to Rs 8,860 crore in just 13 years and aims to surpass $2 billion in revenue within the next three years.
In the last fiscal year, Daikin India achieved a growth rate of nearly 140 per cent.
Chairman Jawa anticipates strong growth in the cooling industry across all segments, given the low penetration levels in India. He expects the Indian AC industry to witness a tenfold growth in the next decade, driven by macroeconomic conditions and government support.
"Now India is at the explosion stage and the roadmap of the entire AC industry is quite bullish. Component manufacturing has started in India in a big way," Jawa explained.
Daikin is the largest investor in the government's Production Linked Incentive (PLI) Scheme for promoting domestic AC manufacturing.
The company is also establishing its third manufacturing unit in Sri City, Andhra Pradesh, which will produce air conditioners and critical components like compressors.
"Before the end of this year we will start the commercial production. We will start manufacturing first compressors and then air conditioners. With this, Daikin's capacity for room air conditioners would increase to 2.5 units and 6 million units of compressors, he told PTI.
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