Daikin, the renowned Japanese air conditioning giant, is poised to consolidate its presence in India by establishing itself as a pivotal manufacturing hub for air conditioning units. Since entering the Indian market in 2004, Daikin has invested significantly, exceeding Rs 2,000 crore in its operations thus far.
Currently, Daikin operates two manufacturing facilities in Neemrana, Rajasthan, and one in Sri City, Andhra Pradesh, supplemented by three robust R&D centers. The recent inauguration of its third manufacturing unit in Sri City has augmented Daikin’s annual production capacity to 2.5 million units, marking it as the largest factory in Southeast Asia spread across 75 acres.
Under the leadership of Kanwaljeet Jawa, Managing Director and CEO of Daikin India, the company has expanded its product offerings significantly. Daikin now manufactures air conditioners ranging from 0.75 tons to 2,700 tons in India, presenting the broadest spectrum of products available in the Indian market.
The strategic expansion comes at a time when Daikin has observed remarkable growth, particularly in the residential air conditioner (RAC) segment. During the first quarter of the fiscal year, Daikin sold 7 lakh units of RAC, achieving over 50% growth driven by the intense summer season.
Looking forward, Daikin India aims to further strengthen its foothold in international markets such as South Africa, the Middle East, and South America. Leveraging its expanded manufacturing capabilities in Sri City, Daikin intends to capitalize on these markets with enhanced production efficiencies and competitive pricing strategies.
Furthermore, Daikin India is diversifying its product portfolio by venturing into the commercial refrigeration segment and expanding its Variable Refrigerant Volume (VRV) Chiller offerings for its HVAC business.
Looking ahead to its long-term goals, Daikin India aims to escalate its manufacturing capacity to five million units by 2030. With prices becoming more competitive and energy efficiency continually improving, Daikin anticipates robust growth in RAC volumes across the Indian market, reaffirming its commitment to sustainability and innovation in HVAC technology.