Daikin is one of the oldest Japanese companies. It was founded in 1924 for different reasons with a different name. It was renamed in 1963 to Daikin Kogyo Co Ltd and later was changed to Daikin Industries in 1982. The Japanese company operates from Osaka in Japan and is headquartered there. It has established its business in Japan, China, Philippines, Australia, India, Southeast Asia, Europe, North America, and South America.
Daikin, however, is looking to expand in many countries which are nearby India. It has deeply rooted in India and is fighting toe to toe with LG, Samsung, Voltas and other companies in the air-conditioner business. Daikin has brought many new things in the world of AC’s, it is the inventor of VRV (Variable Refrigerant Volume). This has earned Daikin Industries a lot of accolades from all over the world. Its AC’s are some of the best in the market. However, its marketing strategies are not as good but the quality of the product always manages to make some noise in the market.
Daikin is also planning its third manufacturing unit in India. It already has two existing units in Neemrana, Rajasthan. The third manufacturing unit is mostly going to take place in the southern part of India. This will increase the production of the AC’s and other products it is trying to foray into. The reason it has chosen India for its third plant is that it is trying to target the SAARC countries (South Asian Association for Regional Cooperation). India is one of the best places to install your manufacturing unit according to Kanwaljeet Jawa, MD, and CEO of Daikin India. Daikin India is rumored to have churned out revenue of about INR 4,200 Cr in the year of 2018-19. The Financial Year 18’s turnover was around INR 3250 Cr.
MD Jawa said that the countries associated with SAARC have similar weather conditions to that of India. This will help them produce one product for many countries and will reduce the time required for shipping the product. Apart from this, the price of the product will also go down and it will help the consumers more than the company.
Daikin can currently produce around 15 lakh AC’s, 1 lakh cassette units, 20 thousand ductable units, 1000 chillers, and around 50 thousand VRV units. The company has also forayed into refrigeration and cold chain units during sometime last year. The main aim of the company is to reach the annual sales turnover of 100 billion yens in the next two years. All of the above measures taken by the company are in order to achieve this goal. It will be interesting to see if their strategies reap success over the next two years or not.