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Danfoss India, the Indian arm of the Danish company of the same name which provides energy efficiency solutions, said it is working on “three pillars” to tap the potential in decarbonisation space in India. The strategy will enable it to grow its India revenue from ₹2,000 crore plus now to ₹5,000 crore by 2025.
The company is bullish on the Indian market given the Centre’s goals of achieving 450 GW of renewable capacity (which calls for about 50 GW addition per year), cutting emissions by 1 billion tonne by 2030, and boosting the share of renewables in energy generation. Danfoss’ businesses are focussed in these segments.
‘Most potential’
“We have a relatively high momentum in the Danfoss group. Over the past few years, we have been investing heavily in R&D and building capabilities and capacities globally. We have also spent €3.5 billion in acquiring companies that help strengthen our core businesses. Indian operations play an important role for Danfoss. We see India as the most potential market for Danfoss in the years to come and India is growing at the highest rate among all our regions globally,” Kim Fausing, Global President & CEO, Danfoss A/S, said.
In the past two years, the group has invested about $300 million in India and if the current double-digit growth is sustained, it hopes to make similar investments in the coming years.
It runs three businesses in India — power solutions, climate, and drives. Under all these three businesses, Danfoss India helps its customers get energy efficiency and decarbonise their businesses. To support its growth in India, the company has hired about 1,400 people, mostly techies, in the past 2-3 years, taking the total number to 3,400.
2025 target
“Our aspiration is to reach ₹5,000 crore revenue by 2025. We hope to end this year with 40 per cent growth in topline as this year has been an extraordinary year for us. For 2023, we expect at least 20 per cent topline growth. We are working on the three pillars to achieve growth,” said Ravichandran Purushothaman, President, Danfoss India.
Under the first pillar, it aims to be present in 80 cities in India. At present, it has a presence in 56 cities and will expand to 24 more locations in the coming months. The second important area is to drive the localisation of the company’s products. Though it varies from product to product, the average localisation level now in India is a little over 50 per cent.
The third area is to tap the new business segments that are emerging out of the decarbonisation mission. As India starts to puts a lot more focus on PLI schemes, infrastructure, healthcare, metro projects, food supply chain, data centres, etc, it sees a lot of new hotspots for strong growth opportunities. “In all these hotspots where energy efficiency, heating and cooling play a significant role, we see an accelerated growth for our businesses,” he said.
Currently, the company sees huge opportunities in data centres, tractors, and other areas. “Tractors are shifting from mechanical to hydrostatic systems for more energy efficiency, low emissions and more productivity, and these solutions have been developed by our Indian engineers and these systems will be provided to global requirements too,” said Astrid Mozes, President – Developing Regions, Danfoss.
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