Air conditioner maker Daikin India is aiming to be a $1 billion (Rs 6,500 crore) brand in India in next two years, led by high double digit growth in domestic markets, addition of new products and increase in exports, said the top company official.
Besides, Daikin is planning to have another plant in South India in the next four years to catch up the growing AC market. It will invest around Rs 600 crore in the plant.
In November 2017, Daikin commenced operations at the second factory in Neemrana, Rajasthan, in which the company has invested around Rs 750 crore.
"We would be a billion dollar company by 2019-20. To achieve it, we will grow at the rate of 20-22 per cent," Daikin India Managing Director & CEO Kanwal Jeet Jawa told PTI.
The company has a turnover of Rs 3,250 crore in 2016- 17 and expects to cross Rs 4,000 crore in the current fiscal, as it has witnessed around 20 per cent value growth in the last three quarters.
According to him, Daikin's growth would be coupled with exports, diversification and new business streams. Commercial refrigeration will further contribute to the growth.
The company is aiming to sell more than 10 lakh units of AC in 2019 and become a leader in the Indian HVAC (heating, ventilation, and air conditioning) segment.
"The growth areas will continue to be tier II & III cities. Indian's AC sales which stood at 4 million units in 2015-16 are expected to rise to 7 million by 2019-20," the company said.
Presently, up to 70 per cent sales of Daikin Air Conditioning India, a 100 per cent subsidiary of Japan-based Daikin Industries, come from room ACs and rest from VRV and chiller segments.
It has the capacity to manufacture 15 lakh room ACs, 50,000 VRV units, 1 lakh cassette units, 20,000 ductable units and 1,000 chillers.
"This capacity would serve us till next 3-4 years only. We would have to make our next plant in South operational by 2022," he said adding the company will soon decide on the location for the plant.
Daikin today launched the latest version of its VRV (variant refrigerant volume) - VRV X- targeting big homes and flats. VRV is normally used in offices and commercial places for cooling.
Besides Indian market, Daikin is also looking to boost exports, although its first priority would be to cater the domestic segment.
"We have started exports to Sri Lanka, Bangladesh, Nepal and South Africa. Now, we have additional production capacity, so we would scout for more markets," Jawa added.
Exports contribute less than five per cent in Daikin India's total sales but the company expects it to go up in the coming years.
The company has invested over Rs 2,000 crore so far in its Indian operations.
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