Danfoss, a leading player in providing energy-efficient solutions, said India continues to be the fastest-growing region for the Danish Group, experiencing robust double-digit growth in the first half of the year.
While activity levels in Europe and China continue to be sluggish and the US shows signs of a slowdown, India maintains solid growth momentum, according to the company.
The strong growth in Indian business is fueled by expanding opportunities in energy efficiency and electrification. “With the rapid expansion of data centres, commercial buildings, and cold chain infrastructure, coupled with the government’s strong support for decarbonisation, we’re confident in our plans to double sales by 2025 (from Rs.2000 crore plus in 2022),” said Ravichandran Purushothaman, President, Danfoss India.
“With our expertise in electrification, energy efficiency, and climate-friendly technologies, we are well-positioned to be a preferred decarbonisation partner for our customers in India, he added. In 2023, the company reported a total sales of over ₹3,400 crore.
The Denmark-headquartered group is undertaking a localisation and capacity expansion programme in its Indian operations with an investment outlay of ₹500 crore to capitialise on emerging growth opportunities in the country. This expansion will also involve the company hiring about 500 people in the next couple of years, Purushothaman told this paper a few months ago.
Despite significant growth over the past three years, both organically and through mergers and acquisitions, the first half of 2024 has been challenging for Danfoss Group due to lower demand in key markets.
The Group’s sales declined by 9 per cent to €5 billion, with half-year EBITA falling 22 per cent to €533 million, resulting in an EBITA margin of 10.6 per cent, down from 12.4 per cent last year. The group’s net profit decreased by 28 per cent to €291 million.
Given the current downturn in various markets, the group expects full-year sales to be at the lower end of the projected range of €10.0-11.5 billion (€10.7 billion in 2023).