Today, Danfoss announced the launch of ‘India 2015’, a growth strategy that outlines how Danfoss plans to tap further into the fast growing Indian market aiming to triple the net sales by 2015. As part of the strategy Danfoss expects to invest half a billion DKK over the next four years in a new R&D and manufacturing facility and simultaneously expand its sales effort throughout the country. During this period, Danfoss will also ramp up its headcount in India from 200 to well above 1,000 by 2015. Most of these employees, will work in R&D and manufacturing performing tasks for Danfoss key business divisions.
“Over the past decades, India has emerged as the world’s second fastest growing economy, and in the coming years India is expected to stay on the growth path. This will provide significant opportunities for Danfoss across our entire product portfolio. India 2015 describes how we plan to leverage this and take growth to a higher level in India by expanding our sales foot print and establishing R&D and manufacturing on a much larger scale than previously,” says Niels B. Christiansen, President and CEO in Danfoss.
Some of the key factors that have led Danfoss to invest further in India are a large pool of qualified engineers, a growing affluent middle class and a home market that is increasing in size. Moreover, a number of underlying mega trends in urbanization, increasing demand for cold chain infrastructure as well as power and energy products is expected to drive strong demand for Danfoss products.
“India’s urbanization will accelerate in tandem with the increasing GDP, and this means India’s cities will be met by influx of millions of people at a pace unprecedented in history. As people move to the cities, the demand for power and energy will grow. The same goes for ventilation, air conditioning and a more efficient cold chain infrastructure to keep food fresh during transport and storage. This will fuel growth for Danfoss in areas such as industrial refrigeration, as well as frequency converters and products related to solar and wind power,” says Noel Ryan, head of Danfoss India.
Danfoss’ next step will be to find a location for its new India facility. Once found, the new facility will become Danfoss India’s new headquarters and house all functions including sales, customer service, administration, IT, procurement, R&D and manufacturing. Danfoss key offices in India, which are currently located in Chennai, Mumbai, Gurgaon (New Delhi), Bangalore, Ahmedabad, will be maintained and new locations are likely to be added to extend sales coverage.
Danfoss has a long track record of doing business in India. From 1964 to 1991, Danfoss sold its products via an Indian joint venture partner. In 1991, as India embarked on an economic reform program that opened up the economy to foreign companies, Danfoss expanded its presence selling its products via a network of distributors. In 1998, it established its own sales company, Danfoss India, which currently employs 204 people. India is already a major contributor to growth and profitability in Danfoss. In 2010, Danfoss India had sales of 380 million DKK, and in 2011 this is expected to grow significantly.
For more information:
Mads Cordt Gyldenkærne, Corporate Communications Advisor at Danfoss: mobile +45 2388 9403 or macgy@danfoss.com