Why has India become Daikin’s preferred innovation destination? The Japanese firm is setting up a global HVAC research hub in Haryana to develop cooling solutions for fast-growing markets.
Japan-based Daikin Industries Ltd has announced plans to establish a dedicated research and development (R&D) subsidiary in India, positioning the country as a global development hub for heating, ventilation and air-conditioning (HVAC) systems serving emerging markets across Asia, Oceania and Africa.
The company’s board has approved the formation of Daikin Research and Development India Private Limited, which is expected to be incorporated in July 2026. The subsidiary will oversee the construction of a new R&D centre in Haryana, with the project targeted for completion by June 2028.
According to the company, the new facility will focus on developing HVAC technologies for large-scale infrastructure, including data centres, factories and commercial buildings.
The move comes as rapid urbanisation and industrial growth across the Global South continue to drive demand for advanced cooling and climate-control systems.
Daikin said India was selected because of its strong engineering and information technology talent pool, along with the expanding presence of industries supporting research, design and manufacturing.
The company also cited the need to strengthen local product development capabilities to address region-specific customer requirements and regulatory standards.
Meanwhile, the Haryana facility will act as a core development centre for products and solutions intended for fast-growing international markets. Particular emphasis will be placed on HVAC systems designed for large commercial and industrial applications, including data centre cooling.
The proposed subsidiary will have its registered office in New Delhi and an initial capital of ₹8 billion, equivalent to approximately JPY 13.6 billion based on the company’s stated exchange rate. Daikin Industries will retain full ownership of the new entity through the Daikin Group, including a nominal indirect holding.
The company said the establishment of the subsidiary is not expected to have a significant impact on its consolidated financial performance for the financial year ending 31 March 2027. The representative and management structure of the new subsidiary is yet to be announced.
