(Photo : Daikin website)
Daikin AC

Daikin Industries Limited, the world's largest air conditioning manufacturer is eyeing to grow their business in India to $119.1 million by 2030, a company official said. 

Kanwal Jeet Jawa, Daikin's chief executive officer of India operations said that the company is looking to expand in India as air conditioners have become necessary to live comfortably in the country's temperature, Bloomberg reported. 

Daikin signs MoU

The report noted that Daikin has signed a memorandum of understanding to acquire an additional 33 acres to build a new plant near its current factory in southern India, as the company ramps up operations in the nation. 

"About 93 percent of people in India still don't own air conditioners and that's the future market for us," said Jawa. 

Jawa also expressed his confidence about the growing Indian market, and added that the residential air conditioning market in the country could reach 30 million units by the end of this decade. 

In the residential segment, Daikin is facing market competition from Tata Group's Voltas Ltd. and South Korea's LG Electronics Inc.

He further noted that Daikin will also ramp up the production of air conditioners in Indian plants, as the firm wants to export significant units to countries in the Middle East, Africa, and Latin America by 2026. 

The Potential of the Indian AC Market

A recent report by the International Energy Agency said that India is one of the world's fastest-growing markets for air conditioners. 

IEA also added that India is set to surpass the United States to become the second-largest market for air conditioners behind China by 2036. 

The rising middle class in the nation is also expected to contribute to the air conditioning market, as the country witnessed one of the hottest years ever recorded in 2023.