The Indian subsidiary of the Denmark-based heating, ventilation and air-conditioning (HVAC) major Danfoss is embarking on a two-pronged strategy to win a place among the group’s top five markets by sales in the next few years, according to a top official.
“As per the plan, our team members are working towards occupying a place among the top five slots within the group in terms of sales by focusing on two key drivers: expanding the distribution network and improving indigenisation level,” Ravichandran Purushothaman, president, Danfoss Industries Pvt. Ltd. told The Hindu.
“This would call for improving the local content to 90%, from the current 65%, hiring more people, focusing on distribution network, developing more India-centric products and moving into 35 more Indian cities,” he said.
Currently, Danfoss India is ranked among the top 10 within the group. It is planning to achieve a topline of ₹2,000 crore by end of 2021. Danfoss is bullish on more than doubling it to about ₹5,000 crore on account of strong demand for energy efficiency, energy storage and electrification products.
When Kim Fausing, president and CEO, Danfoss, visited India during 2017, he told this correspondent that Danfoss India had the potential to find a place among the top five in terms of topline in the next five years by improving localisation to 60% from 20%.
“We have already reached that goal of 65% indigenisation. In 2019, we were ranked eight in the group. But we slipped to ninth due to pandemic-led lockdown in India, whereas other markets were still operating. There has been a shift in ranking due to inorganic growth that changed the sales structure. We have solid programme now and are keen to move up,” he said.
Asserting that they are adopting a hybrid working model in which 50% staff are either working from office or home, he said the pandemic did not affect the operations or the staff.
“Our capacity utilisation is 110% y-o-y and ahead of 2019 level. We are seeing over 20% growth due to strong demand for our products and services from food processing, retail, textiles, plastics, pharma, data centre processing sectors,” he said.
On Thursday, Danfoss said that it had posted double-digit growth in H1 with strong pipeline of projects and orders in H2.
