Daikin expects 20% growth, targets smart city projects

Japanese air conditioner maker Daikin is aiming for a 20 per cent growth in its turnover this fiscal on the back of expansion in sales from domestic residential and institutional segments and exports.
Besides, the company is looking at 100 smart city projects of the government as a big opportunity and it is in touch with leading consultants, who are specifying the norms for that.
"We are expecting 20 per cent growth this year (2015-16). We are expecting that new inverter ACs with R32 refrigerant would be a game changer," Daikin Airconditioning India Managing Director K J Jawa told PTI.

The company had a turnover of Rs 2,600 crore in 2014-15.
"We know that India is going to explode and we are just waiting with our products ranging from 0.75 tons to 2,700 tons. All the smart cities are going to use energy efficient ACs and that is where we see our role getting in," he added.
The company has a facility in Rajasthan and is scouting for land to set up another plant in the country.

About the new plant, a company official said: "We are scouting for land for the project in Telangana, Rajasthan and Maharashtra. Wherever, we would get the best deal in terms of tax benefits, we would go."

However, Daikin declined to share quantum of investment for its new plant.
The company is also expanding its sales network focusing on tier II & III places.
"We would take it (channel partners) to 3,400 by March 31, 2016 from present 2,600. Presently 40 per cent sales of our residential segment is coming from non-metro places and this is going to increase further," Jawa said.
Apart from residential, Daikin is also finding demands from institutional/industrial segment encouraging and promising.
"Presently 30 per cent of Daikin India's sales comes from professional side. We are a dominant player in the VRV segment and aiming to be a leader in the chiller segment," he said.

In addition to that Daikin India is also looking to start direct e-retailing in the coming months as it was evaluating the business model.
The company has also started exporting to Sri Lanka this year apart from neighbouring Bangladesh and Nepal.
"We would soon explore markets in other neighbouring nations and Africa and the Middle East from India," Jawa added.