Daikin, a very popular Japanese brand, manufacturer Air conditioners to cater to the world population. They have their own Indian unit, Daikin Air-conditioning India Pvt Ltd (DAIPL) which reported an annual turnover of RS 3250 in 2017-2018. In fact, Daikin India has been implementing, targeting vast exports in and to East Africa, Bangladesh, and Sri Lanka as well. Their Indian manufacturing unit comprises of two plants in Rajasthan.
Daikin India, MD, and CEO, Mr. Kanwaljeet Jawa has been the stronghold through it all. A step to enter the commercial refrigerator business was also taken last year.
The current intention
Their major goal is to achieve the sales forecast of RS 4200 in 2018-2019. To follow and fill their existing loopholes, their third manufacturing unit is on its way in southern India. In Fact, they are investing to create a distribution base of 10,000 over 2020. This would not only help them grab the semi-unexplored markets of the affluent Indians but also help in increasing production for exports to SAARC countries and existing international footholds.
Exploring Indian Advantages
The decision to set up new units has been major because of India’s cost situation. India’s expertise and cheap labour allow effective products at low costs for export. This gives them the first mover advantage (in cost) over their foreign target markets, especially ones with similar weather conditions as of India. Rising connectivity and logistic ease allows fast delivery all over India and abroad.
The long-term outlook
An increase in world exports, Indian sales and target achievements as a very big possibility. A rise in earnings would lead to higher investments and better infrastructure to ensure future growth. India might as well see the AC penetration rates touch double digits as compared to the recent single digits.
Let’s just say, Daikin India seems to very well known about its way ahead to explore the expanding Indian market and its specialties. This is a take away for other firms existing in India or planning to start their Indian journey.