Danfoss expands India footprint with new investments, targets €1 billion revenue by 2028

Danfoss, a leading player in providing energy-efficient solutions, seeks to double its revenue to reach €1 billion in India by 2028, supported by potential for faster growth based on economic conditions and ongoing investments in the country.

The Denmark-based company is investing ₹1,200 crore in its India operations over the next three years, with ₹1,000 crore allocated for its seventh manufacturing unit in Talegaon, Pune. The remaining amount 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.

Data centres

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

Purushothaman stated that Danfoss’ expansion in India will be driven by key growth areas such as data centres, where demand for energy-efficient cooling solutions is rising rapidly. The company’s heat pumps and industrial decarbonisation solutions are aimed at supporting India’s transition to a low-carbon economy, while its focus on energy storage and grid modernisation will be crucial as the country targets 500 GW of renewable energy. “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,” he added.

In Chennai, Danfoss is increasing capacity for drives, refrigeration, cooling, and air conditioning controls. The facility sits on a 50-acre site, with ample room for expansion 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 per cent. The company invested €488 million in R&D, equivalent to 5 per cent of its turnover, with a significant portion dedicated to India.

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

As part of its expansion, Danfoss is rolling out an “80-City Distribution Strategy” to strengthen its channel partner network, having already expanded to 60 cities with plans to reach 80 within two years.

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

“The two R&D centres in Chennai and Pune have received substantial investment in lab capabilities, enabling local product development, testing, and validation without external dependency. Over the past decade, this has strengthened our ability to create solutions for global markets,” Purushothaman added.