Daikin to go ahead with its plan for third manufacturing unit in India

Japanese air conditioner maker Daikin plans to set-up a third manufacturing unit in India. Daikin Airconditioning India, a wholly-owned subsidiary of Japan-based Daikin Industries is ready to take advantage of the Phased Manufacturing Program (PMP), under which the government has announced incentives for manufactures to promote “Make in India”.

The company will soon make an official announcement regarding its expansion. Besides India, the new plant is expected to ply for African markets also. Daikin is ready to take the advantage of PMP and remain committed to invest in the third manufacturing unit to augment local production capacity,” Daikin Airconditioning India MD and CEO Kanwal Jeet Jawa said. Jawa. This could be game-changer and is a “bold and pro-active step” from the government to boost Indian manufacturing capabilities and support the economy.

Daikin India had already shared its intent on the local value addition during the past few months. The company sees Covid-19 as a short-term disruption and believes in the long-term potential of the Indian market. The Indian market of 6.5 million units bears a great potential, and implementation of a comprehensive plan can further support local manufacturing and the market.

Around 40 per cent sales of the air conditioners are in the month of March to June and almost half of that has gone due to pandemic disruptions. With the late summer and pent-up demand, we are witnessing consumers returning to buy ACs. With gradually opening of the economy many small and medium businesses are now in need of air-conditioning like before, hinting towards a steady growth,” he said adding that normal growth for the industry would return by the last quarter of FY21. While talking about FY20, Jawa said last year was very good and we had recorded a net sales of around ₹4,200 crore.