Companies

Danfoss Power biz in India to become stronger with acquisition of Eaton's division

Our Bureau Chennai | Updated on August 03, 2021

Kim Fausing, President and CEO of Danfoss

As Danfoss officially firmed up its acquisition of Eaton’s hydraulics business globally, the Indian arm is expected to gain a dominant position in the domestic hydraulics market.

Danfoss has finalised its $3.3 billion acquisition of Eaton’s hydraulics business following confirmation of all necessary regulatory approvals and closing conditions.

The move will see the Danfoss Group grow in size by a third and establish itself as a global leader in mobile and industrial hydraulics, claimed a company statement.

Mobile hydraulics has been one of Danfoss’ core businesses for more than five decades. The acquisition of Eaton’s hydraulics business is part of Danfoss’ growth strategy.

Eaton’s hydraulics business will be combined with the Danfoss Power Solutions business segment, adding about 10,000 employees worldwide and $1.8 billion (around €1.5 billion) in 2020 global sales. Combining the two organisations will double the size of Danfoss Power Solutions, increasing its innovation capacity twofold.

“This is a great day for Danfoss as we welcome 10,000 new colleagues into the organisation and create a global leader in mobile and industrial hydraulics,” said President and CEO of Danfoss Kim Fausing.

The strengthened Danfoss Power Solutions will have the broadest selection of mobile and industrial hydraulics products and solutions available on the market, with the full line offering including fluid conveyance systems. The company’s distribution channels have also been significantly boosted, while its local application support and geographical reach have increased considerably.

‘Combining the two robust businesses represents a perfect match and provides countless opportunities, such as increasing our engineering expertise and capabilities, doubling our global application support and extending the value of our Application Development Centers and digital design tools. Adding fluid conveyance and industrial applications are other assets gained through this transaction, said Eric Alström, President of Danfoss Power Solutions.

Going forward, Danfoss will have an even stronger leadership position in the hydraulics market in India, with the addition of Eaton’s industrial hydraulics and fluid conveyance expertise as well to the existing mobile hydraulics capabilities of Danfoss Power Solutions in India.

With this merger, Danfoss Power Solutions' total staff strength crosses 1,000 in India. The larger portfolio of products and the strength of the new strong engineering centre in Pune with more than 500 engineers are expected to drive growth in India.

Published on August 03, 2021

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