Danfoss India plans to invest Rs 500 crore over the next three years to expand its manufacturing and R&D facilities which will generate over 2,000 jobs.
India will be the Danish-headquartered company’s manufacturing hub for the Asia-Pacific and its largest global R&D centre.
The company is among the top manufacturers of electronic controls for power sector including renewable energy, refrigeration, air-conditioning and commercial compressors.
The investments will be in place by 2015, when the company will set up a 50-acre factory in Oragadam, an industrial suburb to the west of Chennai.
It will employ over 2,000 workers including 1,000 in R&D and an equal number in administration and manufacturing. The company now employs over 300 people.
Mr Noel Ryan, President, Danfoss India, who inaugurated a Rs 17-crore factory to manufacture filter-driers, a component that protects cooling equipment from moisture, said this is its second factory for the product after the one in Mexico.
The new factory is an export-oriented unit with a capacity to manufacture two million pieces a year and adds ‘significant’ production capacity to Danfoss, he said, but declined to share the total production numbers.
TN support for land
This factory will export 80 per cent of its production and sell the balance in India. Danfoss can cater faster to its customers in the region as the unit will substitute the supply from Mexico which will cater to other markets there.
The company has sought the State Government’s assistance for land for its new factory at Oragadam.
Its present location at Sholinganallur, Old Mahabalipuram Road, will house the R&D facility, he said.
The multinational €4.5-billion company sees India as the next major contributor of growth.
After recovering from the global financial crisis of 2008, it had two ‘fantastic years’ in 2010 and 2011.
As it faces ‘Euro zone’ concerns, India will contribute to its growth in the Asia-Pacific, where it expects to grow 30 per cent year-on-year, he said.