Danfoss Doubles Down on India: ₹1,200 Crore Power Play

Danfoss, a global leader in energy-efficient solutions, is strengthening its presence in India with a ₹1,200 crore investment over the next three years, aiming to double its revenue to €1 billion by 2028. The Denmark-based company is leveraging India's strong economic growth and increased localisation to drive its expansion.

Of the total investment, ₹1,000 crore will be allocated to establish Danfoss' seventh manufacturing facility in Talegaon, Pune, while the remaining funds will be used to enhance capacity and introduce new product lines at its Chennai campus.

“Localisation is a key priority for us, especially given evolving geopolitical factors,” said Ravichandran Purushothaman, President of Danfoss India.

India remains Danfoss’ fastest-growing market, achieving strong double-digit growth in 2024. Despite a temporary slowdown in Q2 due to elections, business rebounded in the latter half of the year. Danfoss India surpassed ₹4,000 crore in revenue in 2024 and is projected to reach ₹5,000 crore in 2025.

The company’s growth in India is driven by rising demand in key sectors such as data centers, industrial decarbonisation, and energy storage. Danfoss' energy-efficient cooling solutions and grid modernisation technologies are expected to support India’s renewable energy ambitions, targeting 500 GW capacity. “The new 45-acre Pune facility, set for completion by mid-2025, will be instrumental in achieving our €1 billion goal,” Purushothaman added.

Danfoss is also expanding its Chennai facility, increasing production for drives, refrigeration, cooling, and air conditioning controls at its 50-acre site, with space reserved for future growth over the next decade.

Globally, Danfoss closed 2024 with revenues of €9.7 billion, down from €10.7 billion in 2023, with an operating EBITDA of 11.3%. The company invested €488 million in R&D, equivalent to 5% of its turnover, with a substantial portion allocated to India.

By 2028, Danfoss aims to manufacture 80-85% of its India sales domestically. “We have achieved around 55% localisation, but scaling up production is crucial to meeting our target. The new Pune facility and Chennai expansion are central to this effort,” said Purushothaman.

To enhance its market reach, Danfoss is implementing an “80-City Distribution Strategy,” expanding its channel partner network from 60 to 80 cities over the next two years.

The company currently employs 4,100 people, with half based in Chennai, and has been growing its workforce by 8-10% annually over the past three years.

Danfoss is also bolstering its R&D capabilities in India, with significant investments in lab facilities at its Chennai and Pune centers. “Over the past decade, this has enabled us to develop, test, and validate products locally, reducing dependencies and enhancing our global market reach,” Purushothaman concluded.

News by Rahul Yelligetti.