Saturday, October 18, 2014: Daikin, the leading air-conditioner maker based in Japan, is planning to set up its second manufacturing unit in India, in order to increase production capacity. At present the company’s annual production capacity is worth 0.1 million units of air conditioners for households.
While talking to PTI, Daikin Airconditioning India managing director K J Jawa, said that the company has set a budget of Rs 3,300 million for the expansion plans. But this budget doesn’t include land cost of the new factory. The location of the new unit is also not decided yet. When asked about the expected size of the new factory, the MD said production capacity is expected to be doubled at this new unit and the already existing Neemrana, Rajasthan plant is already functioning at its best.
Daikin launched its next generation VRV IV technology (Variable Refrigerant Volume) for commercial air conditioning in the Indian market this week. The MD said the company is expecting a turnover of Rs 25,000 million in the 2014-15 fiscal year and their growth has been slightly affected due to elections and high exchange rates in the first half. In the previous financial year the company had a turnover of Rs 22,000 million. The company is pinning its hopes in the new VRV IV technology to retain their position in the commercial air conditioning segment.
The company is looking for export orders but the Indian market will remain their first priority, as told by the MD. Jawa said they are planning to explore more markets including Sri Lanka, Nepal and Bangladesh.
