The Indian subsidiary of Denmark based heating, ventilation and air-conditioning (HVAC) major, Danfoss is keen on acquiring start-ups, said a top official.
“We are open for acquiring start-ups in the fields of energy monitoring, automation, product traceability, supply chain and food retail,” said Ravichandran Purshothaman, president, Danfoss Industries India. “Recently, our parent company acquired three start-ups. Acquisition of start-ups by Danfoss India is also on our radar.”
“We have not set aside any budget for the acquisition. When we acquire a firm, it will cater to the needs of Danfoss globally. During calendar year 2016, our exports (sourcing of components by the parent company) stood at ₹400 crore. This we want to touch ₹1,000 crore by 2020,” he said.
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Mr. Ravichandran said they have some traditional thinkers in the Research and Development wing, who not only objected but also took time to implement new ideas. However, the parent company got a step-up by hiring a start-ups, who came out with additional man power, new process and innovative ideas in shorter time.
“We have an innovation hub in Germany and Denmark, where in short-listed innovators are given funds, assistance and time to turn their ideas into a successful product. Two good ideas came out of the innovation hub -- how to sell cold rooms on net (food retail space) and energy monitoring in supermarket,” he said.
“Globally, our strategy is to grow revenue by 10% every year, of which 7% through organic and 3% through inorganic route. As far as Indian subsidiary is concerned, we would like to grow our revenue from ₹1,000 crore (January-December 2016) to ₹2,000 crore by 2020 and in exports from ₹400 crore to ₹1,000 crore by 2020,” he said.
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“To achieve the target, we have to grow by 20-25% for the next three-four years. Till date, we have been tracking growth at 18%. We are working with some of our key customers in to make India a sustainable economy. Our focus growth areas are food, climate, infrastructure and energy. Technology and value addition in horticulture are going to be the big game changer for India,” he said.
Briefing about the Indian operations, he said the number of products in the supply chain has increased from three to 10 and it was shipped to more countries now. Danfoss was also planning to double its head count in supply chain arena by the year end to 250.
“Several State governments are proposing smart cities. These cities require modern and energy efficient technologies that are going to bring in transparency in energy consumption in building. Smart cities are going to redefine the cities and Danfoss has a big role in it,” he said.