Daikin India aims 100 bn yen turnover in 2 years on growing sales, exports
Japanese air conditioner maker Daikin's India unit is expecting to touch an annual sales turnover of 100 billion yens (about Rs 6,400 crore) in the next two years on account of its strengthening domestic market position and exports to SAARC region, eastern Africa and Middle East countries.
The company, which has two functional units in Neemrana, Rajasthan, is in the final stages to select for its third manufacturing facility, which would be in the southern India and cater the exports market.
"Daikin India with now managing business across East Africa, Sri Lanka, Bangladesh and Nepal have set a target to achieve 100 billion yens riding on the back of exports and third factory by 2020-21," said Daikin India MD and CEO Kanwaljeet Jawa.
"With India now gaining a reliable manufacturing reputation across the globe, the third Daikin facility will serve the growing local consumption and exports to SAARC countries, East Africa and Middle East," Jawa said.
He further said: "Given our intent in making use of India's cost leadership, the third factory would optimise our cost structure and make us more export oriented and efficient."
According to Jawa, countries that have weather patterns similar to India will be able to take advantage of the Indian production with reduced price and time to delivery owing to multiple connectivity options.
The company is also expecting the AC sales in the domestic market to rise in the coming years and touch double digits as the country's economy is expanding.
"With steady infrastructure development across India, I am confident of AC penetration moving to a double-digit level, from the current 6-7 per cent," said Jawa, who is also a member of the board and Regional General Manager, AC business, India and East Africa, Daikin Industries.
To service this large-scale products and service demand, "we are investing in creating a distribution base of 10,000 by 2020", he said.
Daikin, which has forayed into commercial refrigeration/cold chain business last year, has a present capacity to roll out 15 lakh room ACs, 50,000 VRV units, 1 lakh cassette units, 20,000 ductable units and 1,000 chillers.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)