Danfoss to strengthen localisation and expansion in India
ECONOMY & POLICY

Danfoss to strengthen localisation and expansion in India

Danfoss Industries has finalised an investment plan of about Rs 1 billion, which will be utilised to expand the manufacturing facility located at Oragadam, near Chennai. The programme will enable Danfoss Industries to manufacture new products in a variety of segments while it steps up localisation.

Currently, Danfoss has three manufacturing facilities in India, with the largest facility in Chennai, spread across 50 acres, housing four R&D labs. About one fifth of the company’s products are manufactured locally, while the rest of the products are imported.

As part of the localisation, supplementing the government’s Atmanirbhar Bharat mission, Danfoss India has multiplied its local production and supply chain abilities, and plans to take up localisation from the current 35-40% to 90% over the next two to three years, by partnering with the local supply chain of micro, small and medium enterprises (MSMEs).

Danfoss India has bounced back faster than one would think of from the Covid-19 pandemic. A digitisation programme initiated by the company during the lockdown played a significant role. Business is at prior-year levels now, and the next step of growth for the company will be across various companies, including power electronics, according to company sources.

India aims at achieving 175 GW through renewable energy (RE), requiring a combination in the grid, where a Danfoss’ power electronics products and solutions will hope to play a significant role since the company’s investment focus is in RE both for domestic consumption and for future exports.

Danfoss has already invested Rs 10 billion in the last six years. They are now focusing on strengthening local manufacturing and localisation based on Indian R&D. Danfoss is also investing significantly in digitalisation.

A 100% owned subsidiary of Danfoss Group, Danfoss India, serves a wide range of industries with its drives, electrification products, controls and solutions for refrigeration, heavy industries, air conditioning, HVAC, heating valves, district cooling and underfloor heating applications.

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