Energy efficiency solutions provider Danfoss is upbeat on the rapidly evolving Indian market and continues to drive localisation across different product streams. It is slowly but steadily transforming itself to be a global supplier.
Apart from serving the domestic market, the company, which is part of Denmark-based Danfoss, looks to strengthen production and export products to China and the Asia-Pacific. The company started exports to Europe and North America and may soon start shipments to Latam.
“The focus is on being a global supplier for Danfoss over the next 3-4 years,” Ravichandran Purushothaman, Managing Director of Danfoss Industries, said. “The company has made rapid strides with sales volume crossing the ₹1,000-crore mark. We have put together a number of elements and are aiming at doubling revenue to ₹2,000 crore by 2020. The growth targets are backed by our manufacturing- cum-R&D Centre near Chennai,” he told BusinessLine.
The company has achieved significant localisation in some products and has developed a network of over 25 vendors and suppliers. This has put “us in a position” to serve the energy-efficiency market, Purushothaman said.
The company’s parent has, over the years, made a number of acquisitions and the recent ones such as Sondex Holdings, stake in Leanheat, acquisition of Prosa in 2017 and Vacon India had helped expand product and solution offerings.
Referring to Leanheat, he said it has interesting technology-based solution which helps assess the power requirements of large apartments complex, monitor usage and control power usage.
Potential for value add
The company products and services focus on the manufacture of drives and refrigeration applications which are expected to see a major upstick in the post-GST era where consolidation in warehouses is predicted.
“A number of sectors in the economy are doing well and there is potential for value addition in the areas of agriculture and food processing. In these areas, the energy demand is high. If addressed, there is potential to bring about huge savings on energy consumption,” he explained.
While a new breed of energy service companies has come up, there is no back-up funding. This hampers growth of energy efficiency in manufacturing and process industries.
“There is some anomaly in the way we are looking at energy efficiency. While we are looking at 28 per cent GST, we at Danfoss and industry believe that it should be at zero per cent till the energy efficiency takes off,” he said.
“The company is laying thrust on digitalisation where new technologies, including 3-D printing, will bring about a big change,” he said.
Source: 6 September 2017, Danfoss Industries aims at becoming a global supplier of energy-efficient solutions