Daikin Plans to Make India Its Largest Manufacturing Hub by 2030

Plans to Make India Its Largest Manufacturing Hub

India: Daikin, has outlined major expansion plans for its India operations, aiming to make the country its largest global manufacturing hub by 2030. With India's residential AC penetration at just 7%, Daikin sees massive growth potential driven by rising incomes, housing demand, and environmental awareness. Despite softer demand this year due to early monsoons and global uncertainties, Daikin remains optimistic about India’s long-term growth, planning to expand product lines, distribution, and reach across new geographies.

Daikin has invested ₹2,800 crore (USD 32.74 million) in India so far and now plans to double its residential AC production capacity from 1.5 million to 3 million units annually. The company targets USD 4 billion in revenue from India by 2030, which will require aggressive scaling of operations and distribution. Efforts are already underway to strengthen brand presence and service infrastructure in tier 2 and 3 cities, where consumer aspirations are rapidly rising. To boost accessibility, Daikin is also offering easy financing options, aiming to cater to every segment of the population across the country.

India is emerging as a credible, cost-effective manufacturing base for Daikin, which is investing heavily in ACs, compressors, components, and R&D with a focus on exports. Its digital platform ‘Link Daikin’ has significantly streamlined operations, cutting order cycles from two days to two hours, with 20% of orders now processed digitally. Daikin has taken charge of fulfilling all air-conditioning requirements for the African market from India and remains one of the biggest investors under the PLI scheme. The company’s new Sri City facility, built with cutting-edge and sustainable technologies, underscores its manufacturing commitment.

Source: Financial Express