New Sri City plant to boost production, eyes significant growth in domestic and export markets
Daikin is poised to scale up its operations in India with a manufacturing target of two million and plans to explore more export opportunities.
“The company has already sold seven lakh units of residential air conditioners (RAC) in the first three months of the year, helped by a blistering summer this season and expects over 50 per cent growth. The mandate is five million units, which includes four million units for the domestic market and one million for exports by 2030 and we are very confident,” said Kanwaljeet Jawa, Chairman and Managing Director, Daikin.
Daikin has recently inaugurated its third manufacturing unit in Sri City, Andhra Pradesh. The company is investing in compressor manufacturing and aims to produce five million units by 2030, with a focus on catering to both domestic and export markets.
Jawa emphasised the potential for significant growth in the Indian RAC market, citing its low penetration rate of around seven per cent. He highlighted favourable market dynamics, including declining prices and rising energy efficiency, driving the market towards rapid expansion.
In addition to its domestic expansion, Daikin is actively exploring export markets, including South Africa, the Middle East and South America, leveraging its manufacturing facility in Sri City, which is the largest in Southeast Asia.
With over Rs 2,000 crore invested in India since its inception in 2004, Daikin India reported a turnover of Rs 10,500 crore for the financial year ending 31 March 2024. The company is also poised to enter the commercial refrigeration segment, further diversifying its product portfolio.
In addition to residential air conditioning (RAC), Daikin is also advancing its VRV Chiller offerings for its HVAC business, benefiting from local research and development efforts and innovative solutions.
“Now we sell more chillers than the next big three competitors put together producing in the country,” Jawa said.
Supported by local research and development, Daikin has emerged as a dominant player in the chiller market, with over 60 per cent market share.
“We were selling just 3,000 units in 2010 and last year, we sold more than the entire Asia and Oceania put together. we have now more than 60 per cent market share in the (chillers) segment. In RAC we had just 30,000 units in 2010 and this year, we are talking about 2 million room units,” Jawa added.
Looking ahead, Daikin aims to strengthen its position in the Indian market, with a focus on expanding its RAC segment’s contribution to its overall revenue.
