Danfoss India to invest Rs 1,200 cr by 2028

CHENNAI: Energy-efficient solutions Denmark’s wholly-owned Indian subsidiary Danfoss has earmarked

Rs 1,200 crore capex over the next three years, of which Rs 200 crore has been set aside for Chennai campus capacity expansion, Ravichandran Purushothaman, president, Danfoss India said on Tuesday.

The Chennai facility is operating 100 per cent on renewable energy, he said, noting that Danfoss is increasing focus on localisation given the geopolitics. “We are targeting 80-85 per cent localisation by 2028,” Purushothaman said, adding the company is on track in this regard, having achieved 55 per cent localisation already. Danfoss India is scaling up operations at its 45-acre site in Pune and at Oragadam (where it has only used half of the 50-acre facility).

Sharing the global results of Danfoss as well as outlining the business plans of the Indian subsidiary, he said with sales of Euro 9.7 billion and operational EBITA margin at 11.3 per cent, the Danish entity has stayed resilient, defying global economic headwinds.

“We are looking at a global growth of about 4 to 6 per cent on the topline in the year 2025,” he said, noting that India is the fastest growing region for the Danfoss Group, with the subsidiary achieving a strong growth last year. It is also the group’s sixth largest market and the target is to become top 3 by 2028. Danfoss India has

already crossed Rs 4,000 crore revenue mark in 2024 and is eyeing Rs 5,000 crore revenue this year. By 2028, it expects to breach Euro 1 billion in revenue.

“Growth softened in the Q2, which was the election quarter and it rebounded at the H2 of the year and we had a very strong double-digit growth last year. The reason for the growth is in India we are seeing very strong momentum in data centres. Artificial intelligence and the investment on digitalisation is driving the data centre capacity in India and data centre cooling is one of the hotspots for us right now,” he said, highlighting semiconductors and industrial decarbonisation as the other two key growth drivers.

He also spoke about the opportunity in marine sectors. “India is one of the largest producers of marine products and there is a good amount of capacity expansion we have seen in the marine industry actually. So these have been the highlights of where the markets are growing,” Purushothaman said. R&D investments have been the mainstay of Danfoss, which has invested Euro 488 million, which is 5 per cent of its turnover. “Despite all the challenges we saw in the business, we never reduced our investment in R and D. We have also reduced our emissions by 19 per cent last year on the baseline,” he added.

As part of ‘80-city distribution strategy,’ Danfoss expects to boost its network from 60 to 80 within two years. Danfoss has also globally launched a programme called GreenAsk, wherein it has identified top 25 suppliers, to enable them to become carbon neutral.