Daikin Aims to Make India An Export Hub by 2030

India: Daikin Air Conditioning India, a subsidiary of Japan's Daikin Industries, is set to expand its operations significantly over the next few years. The company aims to position its India unit as a major global exporter, driven by the Indian government's push to increase local production of air conditioner components at competitive prices compared to China. Since entering the Indian market in 2003, Daikin has grown into a major player, with three manufacturing plants and impressive sales growth. In 2023, the company sold over 1.2 million room air conditioners (RACs), surpassing the combined sales of Daikin’s Asia and Oceania markets. For 2024, Daikin targets selling 2 million RACs and reaching a revenue goal of USD 2 billion.

With high demand and a strong manufacturing base, Daikin plans to make India its global export hub by 2030. The company has invested in a new plant in Sri City, Andhra Pradesh, which manufactures key AC components like compressors. Utilizing the production-linked incentive (PLI) scheme for AC components, Daikin aims to increase localization from 53% to 75% and boost exports to markets such as South Africa and South America. By 2030, the company expects to grow its sales to 5 million units, supported by its expanding manufacturing capabilities and export strategies.

Source: Business Today