Daikin Production units in Rajasthan

An aspiring air-conditioner company, Daikin air-conditioners will soon start their production procedure from Neemrana in Rajasthan. This is their second plant in the state which will start from October of this year. They have an yearly capacity of six lakh units and elevating their production capacity to 1.2 million as mentioned by Kanwal Jeet Jawa.

The CEO, Kanwal Jeet Kawa also mentioned that, “We have stretched the capacity of our existing plant to 6 lakh ACs. The second plant, an expansion of the existing plant at Neemrana where we have invested an additional Rs 600 crore, will increase the volumes by another six lakh units taking the total volume 1.2 million ACs annually. Daikin India has been growing double the pace at which the industry is expanding. So, we needed the new capacity which will come on-stream from October this year”.

The Indian Air Conditioners have a new star rating called Indian Seasonal Energy Efficiency Ratio. This has been started by Bureau of Energy Efficiency for air conditioners.

This year, the Indian economy has high chances of elevating. The estimated rate of growth is 7%. This has been connected with the air-conditioning growth in the market, which usually gets doubled with economy growth.

Jawa also added, “That would translate to a growth of 12-15% for the AC industry. But as we have seen in the past, Daikin has been growing double the industry average and we expect about 25% growth in the current year”.

Since long, the buyers have this notion that the Daikin Air conditioners are less economical and expensive. But, the CEO of the company totally refuses this and says, that the higher sales proves that the AC prices are affordable and decent. In the last seven years, there have been a steep hike in prices from Rs. 300 crore to Rs. 3250 crore.

Jawa also added, “Daikin is not a price leader. We just want to give efficient ACs. In order to reach out to all segments of customers Daikin now has a four-tier pricing strategy. Over the years, the company in India has moved from eruption to disruption. Now, we are in an explosion stage”.

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