Daikin invests Rs. 1,400-mn in Rajasthan

Kolkata: Daikin Airconditioning India Limited (DAIL), a fully owned subsidiary of the Japan-based Daikin Industries, is eyeing a turnover of Rs. 1,100 crore from its India operations by the end of 2010, up from the existing Rs. 300 crore.

Daikin which has already announced an investment of Rs 140 crore for its airconditioning production base in Neemrana industrial area in Rajasthan is aiming to ramp up its production by three times in the next three to five years.

'Upto 2010, Daikin will manufacture 20,000 VRV (Variable Refrigeration Volume) units and 1,800 chiller units per annum in Neemrana to cater to the domestic demand in India. We plan to scale up production by three times in the next three to five years and also start exporting our products to the Gulf countries after 2010', Kenichi Yasufuku, general manager (sales planning) of DAIL told Business Standard.

Daikin would launch airconditioning products with high energy efficiency.

In due course of time, it aimed to manufacture these airconditioning products in India, Yasufuku added.

Daikin's dealership network is set to go up from around 200 to over 300 within a year.

The company has a 7 per cent share in India's overall airconditioning market which is estimated at Rs 4,000 crore and it is expected to surpass Rs 7,000 crore by 2010.

Worldwide, Daikin clocked a turnover of $7.6 billion in 2006-07 and the figure is set to exceed $10 billion (about Rs 40,000 crore) by the end of 2007-08.

About 85 per cent of Daikin's revenues come from the airconditioning division while the balance 15 per cent from other divisions like chemicals, semiconductor, oil hydraulics and electronics.