ENA Sectors 2024-09-20 17:34:19 <p><span style="font-size:14px"><strong>New Delhi, Sep 20 (KNN)</strong> Daikin Industries, Japan's leading air-conditioning manufacturer, has made a substantial investment of Rs 1,400 crore into its Indian subsidiary, Daikin Air-conditioning India.</span></p> <p><span style="font-size:14px">This marks the largest capital infusion to date for the company's operations in India, according to recent reports.</span></p> <p><span style="font-size:14px">The investment, aimed at bolstering local production capabilities, was executed in two phases. </span></p> <p><span style="font-size:14px">Regulatory filings with the Registrar of Companies (RoC) indicate that Rs 600 crore was invested in June, followed by an additional Rs 800 crore in August. </span></p> <p><span style="font-size:14px">Consequently, the subsidiary's paid-up share capital has increased to Rs 1,582.9 crore.</span></p> <p><span style="font-size:14px">In anticipation of future growth, Daikin Airconditioning India has also expanded its authorised share capital from Rs 1,500 crore to Rs 3,000 crore. </span></p> <p><span style="font-size:14px">This move, implemented in May, allows for potential additional capital infusions.</span></p> <p><span style="font-size:14px">KJ Jawa, Chairman and Managing Director, Daikin Airconditioning India, stated that the funds will be utilised to enhance manufacturing capacity, with a particular focus on increasing the production of components such as compressors. </span></p> <p><span style="font-size:14px">The company aims to raise the localization rate of its air conditioners from 75 per cent to nearly 90 per cent, further solidifying its position in India's production-linked incentive (PLI) scheme for air conditioners.</span></p> <p><span style="font-size:14px">The investment will support various aspects of the company's operations, including construction, research and development infrastructure, skill development, brand promotion, and internal operations. </span></p> <p><span style="font-size:14px">A significant portion of the funds will be directed towards maximizing the potential of Daikin's 75-acre manufacturing facility in Sri City, Andhra Pradesh, which includes a compressor and device factory.</span></p> <p><span style="font-size:14px">This strategic move comes as Daikin India competes in the Rs 30,000 crore Indian air-conditioning market, alongside major players such as Tata-owned Voltas, LG Electronics, and Havells-owned Lloyd.</span></p> <p><span style="font-size:14px">The substantial investment underscores Daikin's commitment to the Indian market and its ambition to strengthen its manufacturing presence in the country. </span></p> <p><span style="font-size:14px">As the air conditioning industry in India continues to grow, this capital infusion positions Daikin to capitalize on emerging opportunities and enhance its competitiveness in the sector.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 39354 https://knnindia.co.in/news/newsdetails/sectors/daikin-invests-rs-1400-crore-investment-in-indian-operations 2024-09-20 17:34:19 knnindia.co.in