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Danfoss Global President and Chief Executive Officer Niels B Christiansen has said that the company's Indian operation will double its revenue from the current figure of around Rs 1,000 crore, which will make India one of the top five markets for the company, in the next five years.
The Denmark-based heating, ventilation and air conditioning (HVAC) major has said that it has invested $110 million in India, which will be an important export hub.
Christiansen said the Indian operation's turnover is around Rs 1,000 crore, and for India to be one of the top five markets for the company, which is clocking around euro 5.09 billion currently, it needs to double its revenue.
"We hope that the Indian operation will be one of the top five in the next five years. We are bullish about the Indian operations," he said.
Ravichandran Purushothaman, president, Danfoss India, added that the target is ambitious, but not unrealistic and it can be achieved considering the demand.
The growth is from varied sectors like food and beverage, pharmaceuticals, elevators, steel and others.
The company has also been betting big on Tier-II and III cities in the last two-three years by strengthening its wholesale details, which have now increased to 83 cities and are manned by 100 more sales people.
Danfoss also decided to transfer the Vacon production facilities from Bengaluru to Chennai and also ramping up the research and development team. Danfoss had earlier acquired Vacon, a Finnish company which had its drives plant in Bengaluru.
The company has invested around $110 million in India till now, said Christiansen, adding that India is also an important market for catering to the export markets.
According to him, export shipments from the Indian plant are on the rise while imports are going down.
He added that imports of values used in cold chains have been brought down by increasing production in India by adding more products both for the domestic and export markets. The company has six new products lined up in the coming months.
The value of the company's exports was around Rs 325 crore, which is not included in total revenue.
On research and development (R&D), he said that the centre in India is one of the top five globally for the company, which plays a crucial role for global R&D centres.
