The company expects its India operations to cater to 40% of its sales in the country, up from 10% currently
Energy-efficient solutions company Danfoss India, which has made an investment of around $100 million to set up a new campus in Chennai recently, is expecting its manufacturing operations in India to grow in the next five years to meet around 40 per cent of its sales in the country. The Indian facility, which manufactures components for the refrigeration and air-conditioning industry, currently contributes to 10 per cent of its sales.
“We have a well-laid plan for the next five years for expansion in India. Currently 10 per cent of our sales are met from manufacturing activity in India, while the rest comes in from Europe, US, China and Mexico. Our target is to have our Indian operations cater to 40 per cent of sales in next five years,” said Ravichandran Purushothaman, President, Danfoss India. The company currently has around 900 employees and sales of $150 million.
Danfoss recently completed an investment of $100 million in its new 50-acre campus in Chennai, which will be ramped over the next two or three years to meet the goal. With around 60-70 vendors at present, the company would require more suppliers to back the plan, he said. It has also set up an R&D lab in Chennai with around 300 staff, for new product development, reverse engineering and other works. The focus of this centre is to design and innovate products for climate and energy for both India and outside market.
Industrial energy efficiency is estimated to be a Rs 34,000 crore investment opportunity with cross-sectoral interventions such as variable frequency drive and others accounting for 21 per cent and above of the estimated investment potential.
Danfoss India focuses on energy efficient solutions, serving a wide range of industries with products such as heating valves, controls and solutions for refrigeration, air conditioning, HVAC, district cooling and under floor heating applications.
Danfoss India to increase production in India
