Daikin Airconditioning India, a subsidiary of Daikin Industries, aims to double its business in India to $2 billion in the next three years after crossing the $1 billion mark in FY23. The company grew by almost 140% in the last fiscal year, with its primary growth stemming from residential air conditioning systems. Daikin India is the second cooling company to surpass the $1 billion milestone, after Voltas, a Tata group firm.

Daikin India’s turnover for FY23 was Rs 8,860 crore, and the company views India as its “future treasure,” according to Chairman and Managing Director Kanwaljeet Jawa. Jawa said the company has invested Rs 2,300 crore in India so far and plans to expand in the country to make it a manufacturing hub for Daikin’s Middle East and Africa markets.

Daikin India’s revenue is primarily generated from residential air conditioning systems (70%), VRV (20%), and commercial businesses such as projects (10%). The company is also investing in research and development, artificial intelligence, and IoT through the Daikin Japanese Institute of Manufacturing Excellence.

With the current macroeconomic conditions and government support, Jawa expects the Indian AC industry to grow tenfold in the next ten years. Daikin is the largest investor under the government’s Production Linked Incentive Scheme, promoting domestic manufacturing of air conditioners. The company is also setting up its third unit in Sri City, Andhra Pradesh, where it will manufacture air conditioners and crucial components such as compressors.

Daikin’s capacity for room air conditioners will increase to 2.5 units and 6 million units of compressors with the new unit’s addition. Daikin India has three manufacturing facilities, 15 sales offices, and five mother warehouses in India.

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