Accelerating localisation of HVACR compressors and controls production

Danfoss India’s ongoing additional investment commitment of INR 500 crores, announced early in 2024, will support localisation and the development of local manufacturing capabilities for Compressors and Controls.

In a move that aligns with the Government of India’s ‘Make in India’ initiative, Danfoss plans to ramp up local manufacturing capabilities in India within the next five years. As the country’s HVACR sector continues to expand rapidly, Danfoss management’s decision to support its customers through increased localisation and the addition of new production lines for HVACR compressors, heat exchangers & controls will help bring world-class Danfoss solutions to the Indian market at an accelerated pace.

The decision to invest in ramping up local manufacturing capabilities in India will help minimise the company’s dependency on imports for the Indian market. It will also lead to repeated efforts to build/strengthen the local supplier ecosystem, a prerequisite for meeting the increasing market demands for Danfoss’ solutions. It marks a major milestone in Danfoss’ India manufacturing landscape, thus adding more sustainable, efficient, and affordable cooling solutions to its “Make in India” portfolio.

Kristian Strand, President of Danfoss Commercial Compressors, Denmark, emphasised, “India is a key pillar in our global strategy and has been for many years. We are committed to driving growth and sustainable innovation in the region, especially with a view to the fast-evolving market dynamics in the HVACR sector. Our focus on localising our compressors’ production, is not just about meeting local demand. It is also about helping to develop a local supplier ecosystem and investing long-term in India’s future as a key player in our Global Climate Solutions operations. This strategic decision reaffirms our confidence in India’s capabilities and dedication to contributing to Danfoss India’s growth and development.”

Danfoss’ range of compressors, heat exchangers & controls covers approximately 60-70% of customer requirements in India, highlighting its commitment to staying close to customers to meet market demands.

The company aims to significantly increase its localization across various product segments in a phased manner as part of its strategic focus. Danfoss India’s ongoing additional investment of INR 500 crores, announced earlier this year, is aimed at enhancing local manufacturing capabilities, leveraging local talents & transforming them into capable green professionals for the world, and expanding the company’s geographic footprint in the region with more India for India solutions. This investment will also ensure that Danfoss remains competitive and responsive to geopolitical shifts and emerging business opportunities while staying on track with its ‘Make in India’ ambitions.

Mr Madhur Sehgal, Head of Climate Solutions, Danfoss India Region, highlighted, “The localization of our diverse compressors’ portfolio & RAC controls will be a game changer for the Indian HVACR industry. Through this localization move, we aim to develop a local supplier ecosystem, a prerequisite to succeed with our ‘Make in India’ ambitions, support our customers in their cooling & decarbonization journey, and contribute to India’s green transition to ensure a sustainable tomorrow. Our unwavering focus will be on faster delivery of cutting-edge products and enhanced customer satisfaction.”

Ravichandran Purushothaman, President of Danfoss India Region, expressed, “Danfoss commitment to India is unwavering and deeply rooted in our strong belief in the Danfoss India team’s solid potential as a manufacturing powerhouse for national and global markets. By nurturing indigenous talent & scaling up our local production capabilities for Air Conditioning and Refrigeration, we aim to deliver European-quality products & solutions more swiftly to the Indian market.”

Danfoss India’s investments in ramping up its local production capabilities also align with its strategic vision to exceed customer expectations, adapt swiftly to dynamic market demands, and continue manufacturing in India for India and global markets. India continues to be Danfoss’ fastest-growing market, keeping the company on track to achieve its target of INR 5000 crores by 2026, with the expansion of geographic footprint in the region and the creation of more green professionals to support the nation’s carbon neutrality ambitions.