Danfoss India to double localisation level by 2020

Ravichandran Danfoss Industries India, the Indian subsidiary of Denmark-based heating, ventilation and air-conditioning major Danfoss, is aiming to double the localisation percentage in new products in the next three years, said a top official.

- 13 July 2017 By N Anand

Plan is to cash in on Made-in-India opportunity

Danfoss Industries India, the Indian subsidiary of Denmark-based heating, ventilation and air-conditioning major Danfoss, is aiming to double the localisation percentage in new products in the next three years, said a top official.

“We recently introduced seven new products in industrial refrigeration. They have a localisation level of 15-16%,” said Ravichandran Purushothaman, president, Danfoss Industries India. “Our target is to double it in the next three years.”

Danfoss India produces controls and industrial refrigeration. In the last three years, the localisation level of controls was increased from 40% to 60%. A similar attempt is being made to increase the localisation level in industrial refrigeration.

“We are bullish on India. We would like to use the Made-in-India opportunity to increase the localisation percentage from the current level. The penetration of certain products in India such as refrigeration and air-conditioning is low compared to China and other parts of the world. We would like to build an ecosystem of suppliers to increase localisation,” he said.

According to him, the penetration level of refrigeration in India is 5-6% against 40% in China, and air-conditioning at 10% compared to 40-60% in other parts of the world.

“This does not call for fresh investment as the penetration level is low and we also require that kind of demand from the market. We will make investments on developing suppliers, do hand holding for building specialised knowledge skills and processes in cold chain,” he said.

During the calendar year 2016, Danfoss India reported domestic sales of ₹1,000 crore and export revenue of ₹400 crore. The Indian subsidiary is aiming to grow its domestic and export revenue to ₹2,000 crore and ₹1,000 crore respectively by 2020, mostly through the organic route.

“We are also keen on acquiring start-ups in food retail, supply chain, energy productivity and energy automation,” he said.

Last week, Danfoss India was conferred with the ‘Golden Peacock Award for Environment Management’ by the Institute of Directors in Hyderabad.

 

This article was published on THE HINDU on July 13, 2017.

 

 

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