According to reports, following a steady rise in revenues from its India operations since 2009-10, Japanese air conditioner-maker Daikin Industries is now looking to push sales of energy-efficient offerings.
Between 2009-10 and 2013-14, revenues saw a four-fold jump, from Rs. 440 crore to Rs. 2,200 crore.
According to Kanwal Jeet Jawa, Managing Director, Daikin Air Conditioning India is now the second-largest AC-maker after Voltas by revenue.
It is now looking at a 20 per cent growth in revenues (to around Rs. 2,640 crore) this fiscal. Currently, Daikin occupies nearly 12-15 per cent market share, with 50-60 per cent of its turnover coming from split ACs.
“Our target is to be the market leader. After Japan, India is the second market where these energy-efficient products have been introduced,” he told Business Line .
According to him, the new range of inverter ACs with a 1.5-tonne capacity will consume less than 5 ampere of electricity, compared to other brands that consume 8-9 ampere.
Since August 2013, the company, invested approximately Rs. 330 crore towards capacity expansion at its lone manufacturing facility in Neemrana (Rajasthan). It is setting up branch offices there. Manufacturing of room ACs, where it foresees considerable future demand, would be doubled to 10 lakh a year from the current five lakh.
The capacity of other offerings, like VRVs (variable refrigerant volumes) and chillers, would remain the same at 20,000 and 1,800 a year, respectively.
Betting primarily on new offerings, the company plans to add around 700 distributors; thereby, taking the tally to 2,500. It will also double its exclusive store count (Daikin Solution Plaza) to 200.
Brand Daikin began operations in 2000 as a premium AC-maker and moved on to competes with the likes of LG, Voltas and others, analysts maintain.
In 2004, Daikin bought out shares of the Siddharth Shriram-owned Siel Group (with whom it had a JV), to make the Indian unit a wholly-owned subsidiary. This turned out to be a game-changer with focus being on Indian operations.