Danfoss has announced the launch of India 2015, a growth strategy which aims to triple the net sales in India by 2015
As part of the strategy, the company expects to invest £57m over the next four years in a new R&D and manufacturing facility and simultaneously expand its sales effort throughout the country. During this period, it will also ramp up its headcount in India from 200 to well above 1,000 by 2015. Most of these employees, will work in R&D and manufacturing, performing tasks for the company’s key business divisions.
Noel Ryan, head, Danfoss India, states, “As people move to the cities, the demand for power and energy will grow. The same goes for ventilation, air conditioning and a more efficient cold chain infrastructure to keep food fresh during transport and storage. This will fuel growth for Danfoss in areas such as industrial refrigeration, as well as frequency converters and products related to solar and wind power.”
He adds, “India’s urbanisation will accelerate in tandem with the increasing GDP, and this means India’s cities will be met by influx of millions of people at a pace unprecedented in history.”
Niels B Christiansen, president and CEO, Danfoss, informs, “Over the past decades, India has emerged as the world’s second-fastest growing economy, and in the coming years, India is expected to stay on the growth path. This will provide significant opportunities for Danfoss across our entire product portfolio. India 2015 describes how we plan to leverage this and take growth to a higher level in India by expanding our sales footprint and establishing R&D and manufacturing on a much larger scale than previously.”
Some of the key factors that have led the company to invest further in India are a large pool of qualified engineers, a growing affluent middle-class and a home market that is increasing in size. Moreover, a number of underlying mega trends in urbanisation, increasing demand for cold chain infrastructure as well as power and energy products is expected to drive strong demand for the company’s products.