NEW DELHI: Daikin India will invest Rs 330 crore in the current financial year to double its production capacity for room air conditioners in the country, notwithstanding the current slowdown in the market.
At present, the company has a manufacturing capacity of half million units per annum of room air conditioners at its plant in Neemrana in Rajasthan.
"We have decided to double our manufacturing capacity for room air conditioners and take it to one million units. We will invest Rs 330 crore for that," Daikin Airconditioning IndiaManaging Director Kanwal Jeet Jawa told PTI.
He, however, did not disclose whether the company would add the new capacity at the existing plant or would set up a fresh plant.
When asked what was the rationale behind expanding capacity at a time when the country is going through an overall demand slump, he said: "There are a lot of pressures due to economic slowdown but this is also time for us to grow. We have a long term focus about growth in India."
Daikin India is targeting 30 per cent growth in turnover in the current fiscal, lower than what it had projected earlier due to the current economic slowdown.
"Earlier, we had targeted 40 per cent growth rate but looking at the current scenario we have revised our target downwards. Still, we will do better than the industry," Jawa added.
Daikin India had reported Rs 1,800 crore turnover in the last financial year.
The company, which recently started exporting to Nepal and Sri Lanka, is looking at expanding its export base and establishing India as an export hub for Daikin.
"Contribution of exports to our turnover is very small right now. It is less than five per cent but we will expand that going forward. We may look at exporting to South-East Asian countries, South Africa and Middle East," Jawa added.
The company will enhance its distribution network by adding 46 more standalone stores and 400 more dealers to its distribution network.
At present, Daikin India has 104 standalone stores and 1,800 dealers.