Denmark’s Danfoss to speculate Rs 100 crore in TN

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Denmark's Danfoss to invest Rs 100 crore in TN

By Venkatachari Jagannathan

Chennai, November 18th (IANS): Danish company Danfoss A / S has decided to pump 100 rupees into expanding the production of its drives nearby, a top official in India said.

He also said exports from the nearby plant rose 15 percent during the Covid-19 pandemic as there was no production at Danfoss’ other plants.

The company also plans to increase its workforce from currently around 950 to 300.

“With the central government’s announcement of the PLI for various sectors, more companies will invest in expansion, which in turn will be beneficial for Danfoss actuators,” Ravichandran Purushothaman, President of Danfoss India, told IANS.

He said the Rs 100 crore reinvestment will also increase the local content in the company’s drives from 40 percent to 90 percent by 2022.

The company’s drives find extensive applications in industries such as food and beverage, plastics, HVAC, air compressors and textile manufacturers, chemicals, cement, steel, water, oil and gas, marine, paper, and others.

Danfoss India is a wholly owned subsidiary of Danfoss A / S valued at 6.3 billion euros.

The company’s business areas are divided into power solutions, cooling, drives and heating and supply components and systems for original equipment manufacturers.

According to Purushothaman, export orders have increased this year due to the lockdown of Danfoss factories in other locations due to Covid-19.

“This year our exports have grown by 15 percent. Last year we shipped products worth 500 rupees,” said Purushothaman.

While exports for Danfoss India increased, the Covid-19 had an impact on domestic sales and the company will close this year with sales of around Rs.1,600 billion – Rs.1,700 billion.

“According to our original target, we would have had sales of Rs 2,000 by 2020, but the coronavirus has spoiled that,” added Purushothaman.

He said the food, pharmaceutical and fishing industries are expected to see good growth and the three agricultural laws will transform the agricultural sector in India.

“In the dairy sector, processing is only 35 percent, while there is currently little processing in the fish and shrimp sector,” he said.

The Indian government is investing heavily in solar inverters and aiming for 175 GW of installed renewable energy capacity, which in turn would increase the demand for our drives, he added.

Purushothaman was asked about the Covid-19 findings and said the company was able to serve the export market because the workers had multiple qualifications.

“There was a shortage of manpower. We had about 20 percent of our workforce with multi-skilled workers and they worked on different production lines. In the future, we will train our workers on all production lines,” he said.

He said Danfoss has invested a good amount in digitization around the world, which has proven useful with Covid-19.

“There was no problem with employees who work from home. More customers are quickly switching to digital mode. We have offered our services in digital mode. Instead of customers visiting our facility to see the products and processes, we have the same online pooling of our global products featured technical resources. This in turn cut travel costs dramatically, “said Purushothaman.

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