Danfoss plans $100-mn integrated facility in Chennai

Danfoss Industries Private Limited, a manufacturer of mechanical and electronic components and solutions for the refrigeration and air-conditioning industry, is planning to invest $100 million (around Rs 570 crore now) to set up an integrated campus for its manufacturing and research and development (R&D) activities.

The company, a subsidiary of Denmark-based Danfoss, is planning to sign an agreement with the state government in a few weeks for around 50 acre in Oragadam near Chennai. Plans are to complete the project by 2014, said Noel Ryan, president, Danfoss Industries.

“With the campus being ready, we will have all our employees in a single site. With the completion of the facility, which will have both manufacturing and R&D, there will be around 2,000 employees for us in India by 2014,” said Ryan.

At present, Danfoss Industries has around 320 employees, of which 200 are located in Chennai.

The company on Wednesday announced the launch of its filter-drier factory in Chennai, which was set up with an investment of around Rs 17 crore. The factory is spread over 10,000 sft and has created 60 new jobs.

Currently, the filter driers are manufactured by Danfoss’ Mexico facility, which has reached optimum capacity utilisation. Hence, the company has been looking for a facility to cater to the Asian market, Ryan said, adding that the Chennai facility will save almost six weeks in transition. “This will also help the company in reducing costs.”

The company already has a pressure switch manufacturing facility in Chennai, which has been operational since 1998. Danfoss Industries is expecting revenues of $100 million this year, from the current $76 million, and expects it to touch Rs 1,400 crore by 2014.