WARMING UP

Neemrana (Rajasthan), July 9: Daikin, the Japanese air conditioning major, plans to double its sales turnover in the next two years.

To achieve this, the company is setting up a manufacturing facility here at an investment of Rs 160 crore.

“We are a 100 per cent subsidiary and this is our first plant in India. The target is to achieve a turnover of Rs 1,100 crore by 2010 and enjoy a market share of about 15 per cent,” Toshiki Hayashi, managing director of Daikin Airconditioning India, told The Telegraph.

Present in India since early 2000, the company has been importing its products. The plant in Rajasthan will commence production from September next year. Daikin clocked a turnover of Rs 400 crore in the last financial year and is looking at posting sales revenue of Rs 500 crore in 2008-09.

The company also plans to export its products to West Asia and to other neighbouring countries of India.

Daikin is present in both residential and commercial air conditioning segments.

In the residential segment, Daikin sells air conditioners with capacities of 1 tonne and 1.5 tonnes. While in the commercial segment, ACs have capacities ranging from 2 tonnes to 60 tonnes.

At present, the company has a share of 10 per cent in the air conditioning market, which is estimated to be about Rs 4,000 crore. It is expected to grow to Rs 7,500 crore in the next two years.

“Nearly 30 per cent of our total sales is in the residential segment, while the balance 70 per cent is in the premium commercial segment, which we sell to hotels, institutions, hospitals and corporate offices,” said Sanjay Goyal, country head (sales and marketing), Daikin Airconditioning India.

The company forecasts robust growth in the commercial AC market with upcoming large-scale real estate projects, including hotels and corporate offices.

“India is showing huge potential and this has prompted us to double our sales target over the next two years,” Hayashi said.

Chalking out Daikin’s strategy for the Indian plant, he said, “To begin with we will make commercial ACs. Later, we will also manufacture residential ACs.”