Daikin Announces Major Expansion in India with Rs 2,800 Crore Investment
OSAKA: Japanese HVAC giant Daikin has unveiled plans for a significant expansion of its operations in India, committing a fresh investment of Rs 2,800 crore to bolster its manufacturing and research capabilities in the country.
The announcement came following high-level discussions in Osaka, where Union Minister for Commerce and Industry Piyush Goyal engaged with Daikin Industries President and COO Naofumi Takaneka. The substantial investment package includes an allocation of approximately Rs 1,300 crore dedicated specifically to Research and Development (R&D). This focus area aims to innovate high-capacity air conditioning systems and chillers specifically engineered for the rapidly growing data center market in India.
Strengthening Local Manufacturing
During the meeting, Minister Goyal urged the Japanese major to deepen its localization efforts. Specifically, he recommended that Daikin transition from merely assembling compressors in India to full-scale, end-to-end manufacturing of compressors and their critical components within the country.
This push aligns with India’s broader “Make in India” initiatives and the Production Linked Incentive (PLI) scheme for white goods, under which Daikin is already an active participant. Responding to the Minister’s suggestion, Takaneka affirmed that the company’s upcoming R&D center will focus on developing cutting-edge products tailored to the specific climatic requirements of the Indian subcontinent.
A Long-Term Commitment
Daikin has maintained a consistent growth trajectory in India since establishing its flagship facility in Neemrana in 2009. Over the past decade and a half, the company has steadily expanded its footprint, including the formation of a joint venture for compressor manufacturing in 2025 and the establishment of its own compressor production unit.
Takaneka emphasized that the company is aiming for comprehensive market coverage, spanning residential cooling, commercial infrastructure, and high-demand data centers. As part of its roadmap for the future, Daikin has confirmed that its state-of-the-art innovation and R&D hub is scheduled to be fully operational by 2028.
As the company continues to scale its operations, this latest fresh investment marks a pivotal step in strengthening the bond between Japanese technological expertise and India’s burgeoning manufacturing landscape.
