Focussed on hybrids, digitalisation : Danfoss

kim The Indian subsidiary of Denmark-based heating, ventilation and air conditioning (HVAC) major, Danfoss Industries Pvt. Ltd., is focussed on acquiring firms in the electrification (hybridisation) and digitalisation space to fuel its India-growth plans, said a top official.

- 04 November 2017 By THE HINDU

Sees opportunity in electric vehicles

The Indian subsidiary of Denmark-based heating, ventilation and air conditioning (HVAC) major, Danfoss Industries Pvt. Ltd., is focussed on acquiring firms in the electrification (hybridisation) and digitalisation space to fuel its India-growth plans, said a top official.

“We are [exploring] hybridisation for electric vehicles, off-road [vehicles], hydraulic machines, commercial buildings and cold rooms,” said Ravichandran Purshothaman, president, Danfoss Industries Pvt. Ltd.

“India needs energy efficient technologies in the food processing, air-conditioning and refrigeration sectors. Our upcoming acquisitions will be focusing more on technology areas to further strengthen our journey in hybridisation, digitalisation and other key business focus areas.”

According to Mr. Ravichandran, Danfoss sees huge opportunities for hybridisation in electric vehicles, commercial buildings and cold rooms. Given India’s diverse power situations in various states, it believes hybridization could be the true game changer for India.

While announcing the recent acquisition of Finnish firm Visedo, Kim Fausing, president and CEO, Danfoss said: “Electrification is a fast-developing area and holds tremendous potential. This year, we acquired three technology firms against two last year. We have several companies lined up for merger and acquisitions.”

Big theme

“In India, we have a strong commitment to doubling farmers’ incomes and parallel to that, we are focussed on electrification. Clean energy goes into electrification which goes into vehicles and ships in their combustion engines and improving auxiliary functions,” he said.

Mr. Fausing made a quick visit to India last week to explore how to bring these technologies to the market and expand the existing facilities that would help Danfoss in supporting partners and customers. 

Danfoss India is currently in the top 10 market for Danfoss. Right now, we are working to ensure that it reaches top 5. But India has the potential to be in the top 5 in the next 2-3 years By then, the localisation would have to improve to 50% to 60% from the current 20%.

Pointing out that Danfoss reported a healthy double-digit growth in the first three quarters of the current year, he said: “Danfoss witnessed 12% growth of which 8% came through the organic route and 4% through acquisitions. Going forward, we would like to have two-thirds of growth coming through organic route.”

Mr. Ravichandran also said the firm was open to acquiring start-ups in the fields of energy monitoring, automation, product traceability, supply chain and food retail.

“India [receives] just about 8-10% of food processed in the country; there is a huge opportunity to increase food processing. When that industry grows, opportunities in the entire cold chain industry also grow. Secondly, if you take air-conditioning and refrigeration, the penetration of air-conditioning is only about 10-11%, therefore, still have huge opportunity to grow,” he said.

 

This article was published on THE HINDU on November 04, 2017.

 

 

 

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