India can emerge as a manufacturing hub for HVAC industry: Ravichandran Purushothaman, Danfoss

Heating, ventilation and air conditioning (HVAC) systems, which control temperature and air flow in a building, takes a major share of electricity bills for residential, commercial and industrial applications, which puts tremendous pressure on energy sources, and ultimately impacts the climate. With sustainability becoming a buzz word, companies are giving due emphasis on the selection of the right equipment for HVAC to save energy cost.
 
In this interaction with Rakesh Rao, Ravichandran Purushothaman, President, Danfoss Industries Pvt Ltd, one of the leading players focusing on climate and energy efficient solutions, explains the criticality of using efficient drives & HVAC equipment for the profitability of industrial users – especially from chemicals, pharma, petrochemicals, etc.
 
How is the current demand for HVAC equipment?
The Indian HVAC market is growing at a fast pace mainly owing to the huge rise in construction activity in the real estate market. Indian Society of Heating, Refrigerating and Air Conditioning Engineers (Ishrae) estimates that the HVAC products market in India is valued around Rs 15,000 crore, having grown from Rs 10,000 crore in 2010.
 
Why is using efficient drives & HVAC equipment critical for the profitability of industrial users – especially from chemicals, pharma, petrochemicals, etc?
Companies are trying to reduce their energy requirements and scouting for energy to address consumption needs, there is a desirable shift in the mindset of people to promote energy efficiency as an alternate fuel. Therefore, energy efficiency becomes a necessity more than a voluntary policy.
 
To show a case in point in pharma, Cipla decided to build a world class drug manufacturing plant at Goa, it chose the Danfoss VLT HVAC drives to control around 350 AHUs and 20 pumps to maintain inside conditions and differential pressure in the manufacturing areas. The resultant savings is approximately 40% of the energy compared to full speed operation.

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In another instance, Jindal Polyfilms, which is the largest supplier of polyester in the country, wanted to control its chillers that ensure correct water temperature through the production process. Danfoss VLT HVAC drives, with its efficient back channel cooling, ensure optimum energy usage for Jindal polyfilms. 
 
Is the awareness about energy efficiency gaining traction among the end-users (industrial) in India?
Slowly but surely, industrial end users are realising the importance of implementing energy efficient practices in every segment of their business including HVAC. Heating and air-conditioning takes a major share of electricity bills for residential, commercial and industrial applications, which puts tremendous pressure on energy sources, and ultimately impacts the climate. This has resulted in a need for educating all stakeholders and reducing carbon footprints of companies.
 
The Bureau of Energy Efficiency (BEE) has initiated several measures to promote energy saving initiatives both by industry and consumers. We work closely with a host of agencies to improve the energy efficiency roadmap of India. Today, energy efficiency influences investments. It is a mature market that appreciates the importance of drives and its benefits.
 
The uptake of energy efficient technologies can definitely help corporates and organisations, both private and public, reduce their energy footprint. Essentially, this segment of the market is relatively an easy target because there is a regulatory body (like BEE) and a number of corporates who want to responsibly create infrastructure. The Bureau of Energy Efficiency has been driving the labelling of energy efficient buildings.
 
What are the emerging trends in HVAC industry? And how is Danfoss, as a supplier to this industry, tapping into these opportunities?
Across the HVAC industry, energy savings and precision system control are the main reasons to use adjustable frequency drives in HVAC systems today. At Danfoss, providing automatic energy optimisation is our core expertise. Along with our drives, the efficiency of fans or pumps remains high at reduced speeds, thus leading to significant savings in energy consumption.
 
We are involved in engaging with stakeholders – equipment manufacturers and regulatory bodies – to help set some standards on what the country needs. As a company, from an industry perspective, we are trying to ensure that there is strong awareness on energy efficiency and the use of energy efficient products. 
 
We see opportunity to help improve automation levels that help in both energy efficiency and improvement in plant productivity – through our valves, drives and electronic controllers and support the industry on improved safety standards through products offerings that reduce leaks and training stakeholders on best practices.
 
In March this year, Danfoss India announced its partnership with ISHRAE for Integrated Approach towards Project Delivery (IAPD) initiative. What is the objective of this tie up?
The collaborative project between Danfoss and ISHRAE, known as Integrated Approach to Project Delivery (IAPD), is a model that aims to adopt a holistic approach to design and development of buildings involving various players in a project development at an early stage. The basic objective is to streamline the processes involved in construction activity thereby ensuring implementation of energy efficient practices and faster project delivery at lower cost. This helps in increasing value, reduction of waste during construction and maximise efficiency in construction.

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IAPD seeks to increase awareness among various stakeholders like real estate developers, construction experts, architects and engineers in the air conditioning and construction related segments. In lieu of this collaboration, a guidebook with the right framework for collaborative and energy efficient practices will be created and a series of panel discussions are planned throughout this year to create awareness. The very first panel discussion was held in Hyderabad last month and we are looking at hosting it in different parts of the country to raise awareness.
 
How do you view the present status of the manufacturing industry in India? What are the challenges facing this industry?
The manufacturing sector is reviving and is in the process of setting the bar for economic progress in India. One of the biggest challenges for manufacturers is the need for testing labs- we have set up three world class labs that help our clients do testing for their technologies.
 
Can India emerge as a major manufacturing hub for HVAC industry?
Going by the prediction that Indian manufacturing sector can touch $ 1 trillion by 2025, the future of the sector looks promising. India can emerge as a manufacturing hub for HVAC industry given factors like growth of construction projects, low cost operations, demand and energy efficient solutions that are at their disposal.
 
What are the growth plans of Danfoss in India? Are you looking at expansion in India?
‘India 2015’ is Danfoss India’s growth outline for the coming years. We go wherever growth takes us. It outlines to tap further into the fast growing Indian market. The objective will be met by increasing the base business and leverage three key mega trends in India capable of driving growth across the entire product portfolio: Urbanisation, cold chain, power and energy. As part of the growth plan, tier 2 cities will be penetrated to get closer to the customers. In addition, we are revamping our customer service solutions through an integrated approach.
           
We are investing significantly towards our manpower as well as manufacturing capability. Our Rs 500 crore Platinum LEED rated facility in Oragadam, Chennai is nearing completion and will be launched soon. The new facility will cater to R&D, manufacturing, administration and sales. Additionally, it will extend our capability to manufacture filter driers, pressure switches and panels for variable frequency.