Japanese air conditioning giant Daikin is preparing to make India its manufacturing hub to produce two million units in FY25. Daikin entered the Indian market in 2004 and has invested over Rs 2,000 crore so far. In FY24, Daikin India's turnover was Rs 10,500 crore.
Currently, Daikin operates two manufacturing units in Neemrana, Rajasthan, and one unit in Sri City, along with three R&D centres.
According to MD and CEO Kanwaljeet Jawa, Daikin now manufactures ACs ranging from 0.75 tons to 2,700 tons in India, offering the most comprehensive range in the Indian market.
Daikin's Expansion Plan In India:
Daikin recently opened its third manufacturing unit in Sri City, Andhra Pradesh, increasing its manufacturing capacity to 2.5 million units per year.
In the first three months of the year, the company sold 7 lakh residential air conditioners (RAC) units, experiencing over 50% growth due to the intense summer season. Daikin plans to expand further its presence in international markets such as South Africa, the Middle East, and South America, leveraging its new 75-acre Sri City manufacturing unit, the largest factory in Southeast Asia.
Daikin's long-term goal is to manufacture five million units by 2030.
The company expects significant growth in RAC volumes in the Indian market, as the current market penetration is only around 7 per cent. Prices have decreased, and energy efficiency has improved.
"The RAC market was flooded by Chinese products in India. But Daikin decided in a big way. We put up our own manufacturing and R&D," he said, adding that besides it also puts its own air conditioning development centre and skill centres. It has now become the second largest player in the fast growing RAC segment," Daikin CEO said.
Daikin India also plans to enter the commercial refrigeration segment and is expanding its VRV Chiller for its HVAC business. According to Jawa, they now have more than a 60 per cent market share in the chiller segment.
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