Danfoss India eyes up to 50% localisation by 2020

Chennai: With a focus on expanding its presence in India, Denmark-based heating, ventilation and air-conditioning (HVAC) major Danfoss is aiming to increase manufacturing localisation to up to 50 per cent and double its supplier base in the country by 2020.

"Our focus currently is on expanding our business in India. We have come a long way since the time we entered this market as a sales company to manufacturing products...," Danfoss India President Ravichandran Purshothaman told PTI here.

He said currently the company manufactures 20 per cent of its products locally while the rest are imported.

"But now we want to increase the manufacturing localisation to 50 per cent and reduce our imports. We have invested a lot in the R&D in the last few years and will continue to further invest in innovation and technology so that we can manufacture the products locally, which we can even export to other markets," he said.

Danfoss has three manufacturing facilities in India, with the largest being in Chennai spread over 50 acres, which also houses four R&D labs.

Purshothaman further said that to increase localisation, it is necessary that the company expands its supplier base.

"We are currently operating through 82 distributors and partners and have over 120 sales colleagues working from home.

"If we have to increase our production capabilities, we will have to strengthen our supplier base which we aim to double in the next three years," he said, adding that there is huge scope for expanding in Maharashtra, Gujarat and southern states.

"Once we are able to tap and strengthen the supply base in these areas and meticulously put this in place, we see this as a significant production engine for Danfoss to even export our products manufactured here," Purshothaman added.

Apart from R&D, he said, Danfoss is also investing significantly in digitalisation.

He said the government's ambitious plan of smart cities will require modern and energy efficient technologies that are going to bring in transparency in energy consumption in buildings.

"We are in talks with all the stakeholders involved in developing smart cities who can use our products to efficiently reduce energy consumption. Smart cities are going to redefine the cities and Danfoss has a big role in it," he said.

Purshothaman further said the company was also keen on acquiring start-ups in the fields of energy monitoring, automation, product traceability, supply chain and food retail.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.