Danfoss Announces ₹500 Crore Investment in India for Localisation and Capacity Expansion

Danfoss, a renowned provider of energy-efficient solutions, is gearing up to inject ₹500 crore into India for localisation and capacity expansion initiatives. Originating from Denmark, Danfoss aims to bolster its investment-driven approach in India, capitalizing on the nation's promising growth prospects. Over the past decade, the company has already infused ₹2,000 crore into the Indian market.

Although Danfoss encountered challenges in the latter half of 2023 following robust growth in the first six months, the company achieved a 7% growth in local currency terms by the end of the year. Despite global fluctuations, India emerged as a standout performer, showcasing a remarkable growth rate of approximately 20% in 2023. With sales surpassing ₹3,400 crore, Danfoss remains steadfast in its goal to achieve ₹5,000 crore in revenue from the Indian market by 2025.

Ravichandran Purushothaman, President of Danfoss India, expressed confidence in India's trajectory, noting the country's consistent growth amidst challenges faced in other regions, particularly in the Asia Pacific market due to economic slowdown in China. India's resilience positions it to ascend to one of Danfoss's top five markets globally.

The proposed investment of ₹500 crore over the next 12-20 months will primarily focus on enhancing localisation efforts and expanding production capacity across Danfoss's six manufacturing facilities in India. This expansion initiative is expected to create job opportunities for over 500 individuals, augmenting the company's workforce from approximately 3,400 to 4,000 by the end of the current calendar year.

HBL