According to the 2023 financial report, Danfoss Power Electronics and Drives has exhibited exceptional performance, attributed to the remarkable opportunities and immense potential present in India and the Asia Pacific region.
Danfoss Power Electronics and Drives (DPD) in Asia Pacific and India have delivered remarkable sales performances in the first half of 2023. Notably, DPD's sales in Asia Pacific have shown significant growth compared to June 2022. The Asia Pacific Region has experienced triple the growth compared to market growth during this period, surpassing expectations. Meanwhile, India has also shown impressive double sales growth from 2019 to 2022 and approximately 30%-40% growth as of June 2023.
The Asia Pacific and India regions have emerged as promising destinations for investment and global economic growth. With the Asia region receiving 40% of global Foreign Direct Investment (FDI) for the third consecutive years and demonstrating consistent growth, the region's potential remains unparalleled. These regions continue to shine as bright spots on the global economic landscape.
According to Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), approximately 80% of global growth for the current year and following year is projected to originate from emerging markets and developing economies. India is anticipated to contribute more than 15% to this growth.
Significant investments are flowing towards the East due to the synergy, potential and resources we can tap on from both Asia Pacific and India. India's growth doubled from 2019 to 2022, while the Asia Pacific Region (APR) experienced market expansion exceeding threefold in the same period. These remarkable figures underscore our commitment to sustainable growth, emphasizing our appeal to potential partners. This surge in opportunities across Asia Pacific and India offers us the opportunity to harness this potential and progress together. Both India and the Asia Pacific region display a high level of adaptability, allowing us to explore collaborative growth between the two.
Acknowledging the efforts of its dedicated DPD teams in the API region, Danfoss attributes its remarkable first half-year performance to its employees. The strong foundation set by these results aligns with the company's Core & Clear Strategy 2025, positioning Danfoss as a key player in driving innovation and sustainability in engineering technologies.
Danfoss remains committed to significant investments in M&A, digitalization, innovation, and the expansion of capacity and regional presence, all aimed at delivering top-tier solutions to customers and partners. The overarching goal remains to establish itself as the preferred technology partner, driving global decarbonization alongside customers through enhanced energy efficiency, elevated machine productivity, reduced emissions, and widespread electrification.
"By leveraging its strong growth momentum, strategic integrations, and global efforts, we will continue to grow in both regions in 2023 and lead the way in shaping a sustainable future, driving energy efficiency and achieving net-zero targets. It is now the moment to collectively advance India and the Asia Pacific region forward, working hand in hand, to realize a future of engineering tomorrow for Danfoss. After all, the purpose of growth lies in its sustainability, a factor that resonates strongly with external entities, further enhancing our collaborative potential,” says Krisada Phetsuksiri, Head of Asia Pacific and India Region - Drives.
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Marketing Communication Manager, Asia Pacific Region
About Danfoss A/S:
Danfoss engineers solutions that increase machine productivity, reduce emissions, lower energy consumption, and enable electrification. Our solutions are used in such areas as refrigeration, air conditioning, heating, power conversion, motor control, industrial machinery, automotive, marine, and off- and on-highway equipment. We also provide solutions for renewable energy, such as solar and wind power, as well as district-energy infrastructure for cities. Our innovative engineering dates back to 1933. Danfoss is family-owned, employing more than 42,000 people, serving customers in more than 100 countries through a global footprint of 95 factories.