Daikin Airconditioning India expects to double its business to USD two billion (around Rs 16,350 crore) in the next three years. Daikin India is now the second company operating in the cooling space to cross the USD one billion-milestone, after Voltas.

The company, which is a wholly-owned subsidiary of Japan's Daikin Industries, has so far invested Rs 2,300 crore in India. Its expansion plans of making India a manufacturing hub is strategic to its objectives of catering to the Middle East and Africa markets, which also aligns with its global strategy.

Daikin India clocked a turnover of Rs 8,860 crore for FY23. Its India plans include VRV, chillers and room air conditioner (AC) segments. It derives 70 percent of its revenue from residential (room AC), 20 percent from VRV (variable refrigerant volume AC systems) used in large offices, and 10 percent from commercial businesses.

Based on the supportive environment for component manufacturing in India, the manufacturer of commercial and residential air conditioning systems expects 10 times growth in the next 10 years for the Indian AC industry.

Daikin is the largest investor under the government's production linked incentive (PLI) scheme for the promotion of domestic manufacturing of air conditioners. The company is setting up its third unit in India in Sri City, Andhra Pradesh where it will manufacture ACs and compressors and may start commercial production this year.

With this, Daikin's capacity for room air conditioners would increase to 2.5 units and six million units of compressors. Besides, Daikin India is also investing in R&D, AI & IoT and skilling through the Daikin Japanese Institute of Manufacturing Excellence (DJIME). Daikin India has three manufacturing facilities, 15 sales offices and five mother warehouses and is ready to venture into innovation-led areas.