Japanese air-conditioning company Daikin on Monday outlined plans to increase its market share from 11-12 per cent to 15 per cent over the next few years.

The company is also planning a new manufacturing unit, which will effectively double its India capacity to one million units a year, according to Kanwal Jeet Jawa, Managing Director of Daikin India.

Daikin is likely to invest ₹350 crore to build the plant. This would enable the company to expand in the domestic market as well as step up exports in the neighbouring countries, he said.

During an interaction here after the launch of two Daikin Solutions Plazas, Jawa said the company is in the process of consolidating its presence through over 2,000 dealers and over 200 Solutions Plazas across the country.

It is looking at penetrating the Tier II and III cities, where there is huge latent demand for air-conditioners.

Daikin’s Indian business has grown rapidly in the past five-six years after opening its plant in Rajasthan. The Indian unit now reports a turnover of over ₹2,600 crore.

“We operate as a 100 per cent subsidiary of the Japanese parent. While manufacturing units in Japan and Thailand support us, the Indian unit has provided us great flexibility in terms of the range of products and services we offer,” Jawa said.

“Apart from home air-conditioning business, the commercial establishments account for a big chunk. We are working with over 11 airports and major metros, including the Hyderabad metro project,” he added.

The country’s AC market is under-penetrated, said Jawa.

“Last two years have been tough. Cars sell more than ACs. It won’t be long before we see the Indian market witness much higher growth like in China.”

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