Danfoss, a global leader in energy-efficient solutions, is expanding its footprint in India with a ₹1,200 crore investment over the next three years as it aims to double its revenue to €1 billion by 2028. The Denmark-based company is banking on strong economic growth and increased localisation efforts to accelerate its expansion.

Of the total investment, ₹1,000 crore will be used to establish Danfoss' seventh manufacturing facility in Talegaon, Pune, while the remaining funds will enhance capacity and introduce new product lines at its Chennai campus.

“The driving force behind this investment is our commitment to localisation, which has become even more crucial due to evolving geopolitical factors,” said Ravichandran Purushothaman, President of Danfoss India.

India remains Danfoss’ fastest-growing region, recording strong double-digit growth in 2024. Despite a temporary slowdown in Q2 due to elections, the company saw a rebound in the latter half of the year. Danfoss India surpassed ₹4,000 crore in revenue in 2024 and is on track to achieve ₹5,000 crore this year.

Danfoss’ growth in India is being fueled by rising demand in key sectors such as data centers, industrial decarbonisation, and energy storage. The company’s energy-efficient cooling solutions and grid modernisation technologies are expected to play a crucial role as India targets 500 GW of renewable energy capacity. “Our ambition is to reach €1 billion as quickly as possible, with the new 45-acre Pune factory set to be completed by mid-2025 and playing a crucial role in this growth,” Purushothaman added.

In Chennai, Danfoss is expanding production for drives, refrigeration, cooling, and air conditioning controls at its 50-acre facility, which has room for future growth over the next decade.

Danfoss Group closed 2024 with revenues of €9.7 billion, down from €10.7 billion in 2023, with an operating EBITDA of 11.3%. The company invested €488 million in R&D, equivalent to 5% of its turnover, with a significant portion allocated to India.

By 2028, Danfoss aims to manufacture 80-85% of its India sales domestically. “We have achieved approximately 55% localisation, but reaching our target will require significant production scaling. The new Pune unit and Chennai expansion are key to this effort,” Purushothaman said.

To strengthen its market presence, Danfoss is rolling out an “80-City Distribution Strategy,” expanding its channel partner network from the current 60 cities to 80 within the next two years.

The company currently employs 4,100 people, with half based in Chennai, and has been growing its workforce by 8–10% annually over the past three years.

Danfoss is also strengthening its R&D capabilities in India, with its Chennai and Pune centers receiving significant investments in lab facilities. “Over the past decade, this has enabled us to develop, test, and validate products locally, reducing external dependencies and enhancing our ability to serve global markets,” Purushothaman added.