Daikin Air-conditioning India Pvt Ltd, a 100 per cent subsidiary of the $14-billion Daikin Industries Ltd, will begin commercial production of residential air-conditioners at its integrated air-conditioner manufacturing plant at Neemrana in Rajasthan in June this year.

Until now, these air-conditioners were being imported from the company's three plants in Thailand, Mr Kanwaljeet Jawa, Managing Director, said here on Wednesday.

Daikin India set up its Neemrana plant in 2009 with an initial investment of Rs 210 crore and invested another Rs 250 crore last year on expansion of its India operations. Mr Jawa indicated that the company could set up new plants in other States as well, but declined to elaborate at this stage.

Unlike its competitors, Daikin does not make window air-conditioners and focuses on manufacturing split ACs from 0.75 tonne capacity, priced at Rs 22,500 apiece, to 2,700-tonne chillers which come at Rs 27,000 per tonne.

At present, Daikin India, which reported a 300 per cent growth last year, has a 12 per cent market share in room ACs, over 50 per cent in variable refrigerant volumes (VRVs) and 15 per cent in chillers, which it expects to grow substantially in the coming summer with the launch of a new range of energy-efficient air-conditioning solutions for residential, light commercial and commercial segments.

Beefing up distribution

In an aggressive marketing drive, the company is doubling its distribution base with a 2,000-strong dealer network and is setting up 100 Daikin exclusive Solutions Plazas across India over the next 12 months with a focus on Tier-II and III as growth hotspots, Mr Jawa said.

While the air-conditioning industry witnessed dull growth in 2011, Daikin grew multi-fold despite the higher prices of its products since they were found to be energy-efficient, he said. India's air-conditioning market is expected to grow at a CAGR of 20 per cent over the next five years, he added.

In the commercial segment, Daikin's VRV brand is expected to garner a 65 per cent market share in India over the next three years, compared to 50 per cent last year. The company also expects to attain a 15 per cent share in chillers by leveraging local manufacturing at Neemrana.

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