Japanese air conditioner maker Daikin is aiming to cross Rs 5,000 crore sales mark here in next two years as it expects a bigger share in the energy conserving inverter AC segment.
Daikin expects expansion in real estate, technological innovations, and stricter eco-friendly norms to drive its growth.
As part of its strategy, Daikin India is enhancing its sales infrastructure in small cities and towns, and has plans to explore foreign markets once its second unit at Neemrana goes into production later this year.
"We are growing more than the industry average from 2010 onwards... This season we would grow minimum of 25 per cent," Daikin Airconditioning India CEO & Managing Director Kanwal Jeet Jawa told PTI.
Daikin India had clocked a turnover of Rs 3,250 crore in FY 2016-17, registering 18 per cent growth over that of Rs 2,750 crore in previous fiscal.
When asked if Daikin would cross Rs 5,000 crore turnover in next two years, he said: "Definitely, you can count. This is the plan for us."
This season, Daikin is expecting to corner at least 34 per cent market share in inverter ACs, which are considered to be energy efficient.
"Last year our inverter AC sales were around 25 per cent of the total market and this year we are increasing it to 34 per cent of total sales," he said, adding "R32 refrigerant brought by us here was a game changer."
In India, total size of split AC is around 4.5 million units and around 10 to 12 per cent of that was of inverter AC last season in which Daikin had 25 per cent share, Jawa said.
Besides, the company is also focusing to increase sales of its VRV (variant refrigerant volume) which is used for offices by taking it to some more cities.
"We are doubling our efforts in the VRV segment. So far we were selling it in Delhi, Mumbai and Chennai and now we are taking to other places," he said adding "earlier we use to sell to small offices and now we are taking it to residential sector as villas and big houses."
Daikin India's 70 per cent sales come from residential AC segment and VRV contributes around 20 per cent while the rest comes from chillers.
"VRV is the next potential area of growth. In China Daikin sells around 3,00,000 units and in India its around 20,000 only," he added.
The company is also expanding sales network from 4,000 channel partners to 10,000 channel partners.
"We are increasing our physical infrastructure. We have 23 sales office now and going deeper into tier II & III markets."
He further said: "Our second factory would be ready by October this year and this would double our capacity here".
The company, which has opened its R&D centre here, is also planning to have a third unit at Neemrana in FY2018-19.
"Third factory would be around FY2018-19. We have already initiated some action," Jawa said, adding that the company has so far invested around Rs 2,000 crore in India.
Daikin also exports products to neighbouring markets as Sri Lanka, Nepal and Bangladesh from India.
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