Daikin Invests Rs 1,400 Crore Investment In Indian Operations

(MENAFN- KNN India) New Delhi, Sep 20 (KNN) Daikin Industries, Japan's leading air-conditioning manufacturer, has made a substantial investment of Rs 1,400 crore into its Indian subsidiary, Daikin Air-conditioning India.

This marks the largest capital infusion to date for the company's operations in India, according to recent reports.

The investment, aimed at bolstering local production capabilities, was executed in two phases.

Regulatory filings with the Registrar of Companies (RoC) indicate that Rs 600 crore was invested in June, followed by an additional Rs 800 crore in August.

Consequently, the subsidiary's paid-up share capital has increased to Rs 1,582.9 crore.

In anticipation of future growth, Daikin Airconditioning India has also expanded its authorised share capital from Rs 1,500 crore to Rs 3,000 crore.

This move, implemented in May, allows for potential additional capital infusions.

KJ Jawa, Chairman and Managing Director, Daikin Airconditioning India, stated that the funds will be utilised to enhance manufacturing capacity, with a particular focus on increasing the production of components such as compressors.

The company aims to raise the localization rate of its air conditioners from 75 per cent to nearly 90 per cent, further solidifying its position in India's production-linked incentive (PLI) scheme for air conditioners.

The investment will support various aspects of the company's operations, including construction, research and development infrastructure, skill development, brand promotion, and internal operations.

A significant portion of the funds will be directed towards maximizing the potential of Daikin's 75-acre manufacturing facility in Sri City, Andhra Pradesh, which includes a compressor and device factory.

This strategic move comes as Daikin India competes in the Rs 30,000 crore Indian air-conditioning market, alongside major players such as Tata-owned Voltas, LG Electronics, and Havells-owned Lloyd.

The substantial investment underscores Daikin's commitment to the Indian market and its ambition to strengthen its manufacturing presence in the country.

As the air conditioning industry in India continues to grow, this capital infusion positions Daikin to capitalize on emerging opportunities and enhance its competitiveness in the sector.

(KNN Bureau)

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