“Daikin India with now managing business across East Africa, Sri Lanka, Bangladesh and Nepal have set a target to achieve 100 billion yens riding on the back of exports and third factory by 2020-21,” said Daikin India MD and CEO Kanwaljeet Jawa.
Daikin India is expecting a revenue of around Rs 4,200 crore in 2018-19. It had reported a turnover of around Rs 3,250 crore in 2017-18.
“With India now gaining a reliable manufacturing reputation across the globe, the third Daikin facility will serve the growing local consumption and exports to SAARC countries, East Africa and Middle East,” Jawa said.
He further said: “Given our intent in making use of India’s cost leadership, the third factory would optimise our cost structure and make us more export oriented and efficient.”
According to Jawa, countries that have weather patterns similar to India will be able to take advantage of the Indian production with reduced price and time to delivery owing to multiple connectivity options.
The company is also expecting the AC sales in the domestic market to rise in the coming years and touch double digits as the country’s economy is expanding.
“With steady infrastructure development across India, I am confident of AC penetration moving to a double-digit level, from the current 6-7 per cent,” said Jawa, who is also a member of the board and Regional General Manager, AC business, India and East Africa, Daikin Industries.
To service this large-scale products and service demand, “we are investing in creating a distribution base of 10,000 by 2020”, he said.
Daikin, which has forayed into commercial refrigeration/cold chain business last year, has a present capacity to roll out 15 lakh room ACs, 50,000 VRV units, 1 lakh cassette units, 20,000 ductable units and 1,000 chillers.