Danfoss Announces Major Rs 1,500 Crore Investment in India for Expansion
Chennai: Danfoss, a leading Denmark-based provider of energy-efficient solutions, has unveiled plans to invest Rs 1,500 crore in India over the next five years. This significant commitment was announced by Ravichandran Purushothaman, President of Danfoss India, highlighting the company's strategic focus on enhancing its manufacturing capabilities and localisation efforts in the country.
Investment Details and Expansion Plans
The investment will be directed towards multiple expansion initiatives, including increased localisation and the development of a compressor plant. These efforts are aimed at accelerating the production of global products from India. Purushothaman stated, "Over the past five years, we have invested about Rs 1,200 crore in India. We are looking at investing Rs 1,500 crore between now and 2030."
Currently, approximately 57% of Danfoss's production in India is localised, with an ambitious target to reach 80% by 2030. The company is also doubling its capacity at the compressor plant in Bengaluru and expanding its footprint into newer products, particularly those driven by India-led research and development (R&D).
Boosting Global Exports from India
Danfoss aims to significantly increase its global exports manufactured from India. Presently, only 2% to 3% of products made in India are for global markets. Purushothaman expressed optimism, saying, "Hopefully, in the next five years, this will increase to 20% to 25%, with products for global markets being manufactured from India." Additionally, the company is establishing world-class labs in India to support innovation and quality.
Company Overview and Market Impact
Danfoss India, a wholly-owned subsidiary of the Danfoss Group, serves various industries with products such as drives, heating valves, controls, and solutions for refrigeration, air conditioning, HVAC, district cooling, hydraulics, and underfloor heating. The Indian subsidiary contributes roughly 5% to the group's global turnover, which was euro 9.4 billion in CY2025.
Purushothaman highlighted growth opportunities in specific segments: "We expect our data centre segment to grow from 7% of our turnover to about 10% to 11% this year. The second biggest opportunity we see is in the energy transition space, particularly heat pumps." The company exports to key markets including the US, Europe, and China.
Impact of West Asia Conflict
When asked about the effects of the West Asia conflict, Purushothaman noted minimal direct impact on India until early April. However, he acknowledged challenges such as increased freight costs for exports and limited vessel availability, leading to delays of about two weeks in shipping durations.
This investment underscores Danfoss's commitment to strengthening its presence in India, leveraging the country's manufacturing potential to drive global growth and innovation in energy-efficient solutions.
