Daikin India Bullish on East Market; Odisha a Key Growth Driver

• New Factory at Sri City fully operational

• Targets 30% growth; 210 Crore Revenue from Orissa

• Aggressive Brand Building & Channel Expansion

12^th April 2025, (Odisha Tazanews) Bhubaneshwar :- Daikin Airconditioning India Pvt. Ltd. (DAIPL), the fully owned subsidiary of Daikin Industries Ltd., Japan & the market leader in the air-conditioning market in India today launched a host of new air-conditioning products for the Odisha market amidst major fanfare & excitement. Daikin observes’s Odisha as a potential market, so we will continue to invest in developing the market with a view to dominate the room AC market.The Daikin products bring with them with strong technology from Daikin Global that offers lower cost of ownership and topped with unmatched quality and durability.

On this occasion, Mr. Kuldeepak Virmani, Senior Vice President & Executive Director, Daikin Indiasaid, “With India experiencing strong and sustained growth, we are poised to accelerate our expansion across Odisha, adopting a more aggressive approach to strengthen our market presence. The launch of new products is a strategic move in Daikin’s mission to enhance its market share and industry leadership. Our commitment remains steadfast in delivering an exceptional consumer experience, backed by a highly skilled sales, service, and maintenance network, supported by our dedicated dealer partners and employees.” 

The East market has grown over 32% in the last year, and Daikin India predicts it to be a INR 1600 crores by 2026, prompting us to launch a host of new products & increase our dealer network extensively. With robust infrastructure & housing development, we are witnessing a high demand for smart & energy efficient air-conditioning solutions. We are planning to invest in heavy marketing & promotions across Orissa to secure 18% market share end of FY 25-26. Daikin India, now operationalised new facility at Sri City, Andhra Pradesh, spread across 75.5 acres mirrors its commitment for excellence and innovation; strategically positioned to cater to the increasing demand for state-of-the-art air conditioning products manufactured in India, for domestic and international consumption. Daikin notably is the principal investor in the Production Linked Incentive (PLI) program in the air-conditioning category, implemented by the government to encourage domestic production of air conditioners.

Mr. Kuldeepak Virmani commented, “The commercial launch of our new manufacturing plant in Sri City marks a significant milestone for Daikin, reinforcing our commitment to innovation, sustainability, and growth in India. This state-of-the-art facility is set to enhance our production capabilities, ensuring a stronger supply chain and a more efficient, energy-conscious approach to HVAC solutions. With this expansion, Daikin takes a major step forward in strengthening its leadership in the industry, catering to the growing demand for cutting-edge, eco-friendly air-conditioning solutions.

More than just increasing capacity, this investment reflects our long-term vision—to drive excellence, foster strategic partnerships, and contribute to India’s evolving industrial landscape, ensuring shared success for all stakeholders.” The Indian government’s Production-Linked Incentive (PLI) scheme has been instrumental in boosting localization within the RAC industry, encouraging substantial indigenization of approximately 75% over the next three to four years through ongoing backward integration efforts by industry players.

Notes to Editor:

Industry reports anticipate a robust increase of 22% in residential air conditioner (RAC) volumes for FY25, highlighting substantial growth potential. This is attributed to the current low adoption rate, which stands at only 7-9% among total urban Indian households, significantly lower than the 90% observed in developed nations. Moreover, consumers are increasingly seeking energy-efficient products with a reduced total cost of ownership. Daikin remains dedicated to environmental responsibility, and the new plant in Sri City incorporates eco-friendly practices in line with the company’s commitment to sustainability. The facility is designed to minimize environmental impact through energy-efficient processes and waste reduction initiatives, aligning with Daikin’s global vision for a greener future.

About Daikin Airconditioning India Pvt. Ltd.:

Daikin Airconditioning India Pvt.Ltd.( DAIPL) is a 100% subsidiary of Daikin Industries Ltd., Japan, a global leader in the manufacturing of commercial-use and residential air conditioning systems. Backed by the superior technology, the organization offers a wide range of energy-efficient air conditioning solutions to the Indian customers. It has been successfully offering premium air conditioning solutions in the Indian market for large-scale projects. Robust growth is forecasted in India’s air-conditioning market in the future and Daikin intends to further increase its market share of residential and large-scale projects.