Daikin eyes to expand its wings

The company is expected to sell about 4.25 lakh ACs registering a turnover of Rs 2,300 cr in FY 2014-15

Daikin Air-conditioning India Pvt Ltd, a 100 per cent subsidiary of Daikin Industries Ltd, Japan plans to consolidate its presence in Indian market with the help of new energy efficient air conditioners that might save the running cost for the consumers.

Talking to Business Standard, on the sidelines of the launch of new Inverter Air Conditioner by the company, the Managing Director of Daikin Air Conditioner India limited, Kanwal Jeet Jawa said that there was a huge untapped market in India and the new air conditioner might help save up to 60 per cent of energy. The new state-of-the-art ACs are at a premium price but the cost saving in terms of power consumption can cover up for the higher price over a short period of consumption.

The company is expected to sell about 4.25 lakh ACs registering a turnover of Rs 2,300 crore in FY 2014-15.

With new range of ACs the sale is projected to touch 5 lakh with a turnover of Rs 2,800 crore in FY 2015-16.

The company would expand its footprint by adding more franchise stores and will be having 200 stores by March end.

"What LED technology has done in the lightening segment we aim to do in air conditioning in India", he added.

The company plans to spend Rs 90 cr in customising the technologies according to Indian conditions, he said. The relaxation on import duty on electrical components, he said, helped the company absorb other variable costs and no price revisions have been done.

The 'Make in India' thrust may help us with a competitive edge in the Indian market. The manufacturing unit of Daikin in Neemrana in Rajasthan is utilizing 90% of its capacity. This may be ramped up to spur the production if need be.