Daikin's Mega Expansion in India: 2 Million AC Units This Fiscal

Daikin plans to manufacture 2 million air conditioning units in India this fiscal, with ambitions to turn India into a significant export hub. The company has sold 7 lakh residential air conditioners in the first quarter, largely due to a scorching summer, and is targeting 50% growth.

Daikin is set to manufacture two million air conditioning units in India this fiscal year, with aspirations to establish the nation as a central export hub. Having already sold 7 lakh residential air conditioners in just three months, bolstered by a particularly hot summer, the company anticipates over 50% growth.

The introduction of a third manufacturing unit in Sri City, Andhra Pradesh, and a strategic investment in compressor production further underscores Daikin's target to produce five million units by 2030. This ambitious mandate comprises four million units for the domestic market and one million for exports.

Daikin's confidence stems from the rallying growth in India’s relatively low-penetration RAC market, which stands at about 7%. As product prices decrease and energy efficiency rises, the company sees a potent opportunity for expansion. Additionally, with exports to regions including South Africa and the Middle East facilitated by its expansive Sri City unit, Daikin continues to bolster its global presence.