Daikin, plans to manufacture two million units in India this fiscal year and aims to make India a key manufacturing hub for exports. The company has sold 700,000 residential air conditioners (RAC) in the first three months of this year, driven by a hot summer. Daikin expects over 50% growth this year, according to Daikin India Chairman and Managing Director Kanwaljeet Jawa.
Daikin recently opened its third manufacturing unit in Sri City, Andhra Pradesh, and is investing in compressor manufacturing with a goal of producing five million units by 2030. This includes four million units for the domestic market and one million for exports.
The Indian RAC market is growing rapidly, with penetration at around 7%. Prices are falling and energy efficiency is improving, boosting demand. Daikin exports to South Africa, the Middle East, and South America from its new 75-acre Sri City factory, the largest in Southeast Asia.
Since entering the Indian market in 2004, Daikin has invested over Rs 2,000 crore. For the fiscal year ending March 31, 2024, Daikin India’s turnover was Rs 10,500 crore. The company also plans to enter the commercial refrigeration segment and expand its VRV chiller business.
Daikin now holds more than 60% market share in the chiller segment and aims to increase its RAC market share. It has two manufacturing units in Neemrana, Rajasthan, and one in Sri City, supported by three R&D centers. The company plans to increase its localization level to 75% by manufacturing compressors and PCB circuits domestically.
With its third factory, Daikin India’s manufacturing capacity is now 2.5 million units per year. Daikin products are available in over 15,000 sales outlets and 350 exclusive Daikin Solution Plazas across India.
