Danfoss India, a leading player in providing energy-efficient solutions, says that it sees potential to grow at a CAGR of 18-20 per cent over the next three years in the country, helped by its core businesses coupled with a fresh growth strategy to bring incremental business from newer areas.

Indian operation has become the fastest-growing region for the 10.3 billion euros Danish Group and the revenue of Danfoss India stood at more than ₹2,000 crore in 2022. At 40 per cent growth over 2021, India achieved the highest growth among all regions in 2022. The company is well on course to achieve the ₹5,000 crore revenue mark by 2025.

“Danfoss’ strategy in India is investment-led and the company has invested more than ₹1100 crore in the past three years. We ramped up capacities and people headcount as the group is looking at India as a manufacturing base for its core businesses that include power solutions, climate solutions and power electronics and drives,” Ravichandran Purushothaman, President, Danfoss India told businessline .

The company has also expanded its design footprint in India and has hired more than 400 IT engineers in the past 18 months at its GCC (Global Capability Centre) in Chennai.

Drivers of expansion

The reason for the expansion in the core business is due to strong growth opportunities spurred by energy transition, infrastructure expansion, ESG, PLI schemes, etc.

Now, Danfoss India is focussing on driving deeper localisation of its products such as electronics and drives in its core business - to more than 90 per cent plus from the current level of 60 per cent.

Purushothaman said India offered certain unique suppliers who already have very high capabilities and are also attractive from an ESG perspective (for supplier base). We are roping in those suppliers – not just for expanding offerings in India but also to make suppliers to its global factories.

“We have so far evaluated 30 odd supplies and these will come on board, both to drive our localisation programme and also serve the global needs of Danfoss units,” he added.

The big infra push by the Central government has led to investments in areas such as fisheries, marine, etc. “These segments are providing us with new businesses. In the last five months, we have won more than 20 fishery projects (Danfoss supplies industrial refrigeration products to these customers) in India,” he said.

Danfoss will also be focussing on water space as it seeks to offer solutions for industrial and sewage water treatment solutions. “This area is a very big opportunity for us in India,” said Purushothaman.

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