MUMBAI, Mar 10: Denmark-based heating, ventilation and air-conditioning (HVAC) major Danfoss is
eyeing a topline of Rs 2,000 crore from its India operations
over the next two years as it continues to increase local
manufacturing.
The company, which has three plants in the country, is
also in the process of more than doubling its local supplier
base to achieve the revenue target, Danfoss India president
Ravichandran Purshothaman told PTI.
Currently, Danfoss India meets 30 percent of demand
from local manufacturing and the target is to more than double
this and take this to 70 percent, he said.
“India is one of the priority markets for Danfoss, we
want to expand our business here.
Currently, nearly 30 percent of our products sold here
are locally manufactured.
But we want to take this to 70 percent in the coming
few years,” he said.
Danfoss India, which closed 2018 with a revenue of Rs
1,400 crore, expects the same to grow to Rs 2,000 crore over
the next two years as it plans to increase the supplier base
and local manufacturing.
“We have been present here since the past 20 years.
Now with a target of meeting 70 percent demand with
locally-made products, we want to develop more India-centric
products, using our R&D here which will also help us meet some
global demand,” Purshothaman said.
Danfoss has three facilities in the country with the
largest based in Chennai, where it also has four R&D labs.
Danfoss business segments are classified under power
solutions, cooling, drives and heating and it supplies
components, systems for original equipment manufacturers as
well.
“So far we have invested USD 125 million in these
current facilities. We plan to invest another USD 25 million
over the next 24 months to augment capacity,” he added.
Apart from R&D and capacity expansion, Purshothaman
said, the company is also investing significantly in
digitalization as it sees lots of demand coming in from the
various smart cities projects which will require energy
efficient technologies.
Purshothaman further said they are also keen on
acquiring startups in the fields of energy monitoring,
automation, product traceability, supply-chain and food
retail.
The company has already acquired the Pune-based
embedded software provider KPtronix and is looking at more
acquisitions, he said, adding but when it comes to
manufacturing, it would be organic growth only. (PTI)
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