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CORPORATE NEWS [latest news list] February 13, 2008
Establishment of New Air Conditioning Equipment Production
Factory in the Republic of India

Daikin Industries, Ltd. (Head office: Osaka, Japan; hereafter "Daikin"), through its subsidiary Daikin Airconditioning India Pvt. Ltd. (Head office: New Delhi; established: April 2000), has acquired an industrial site to establish a new air-conditioning equipment production base in the Neemrana Industrial Area of the state of Rajasthan, Republic of India, as of February 12, 2008.

With an investment of approximately 3.7 billion yen, construction of the new factory will begin next spring and operations are scheduled to commence in March 2009. Manufacture of multi-split type commercial-use air-conditioning equipment and chillers (large-capacity air-conditioning heat source equipment) is first planned at the factory. By reducing supply lead-time and meeting market needs in terms of product specifications, Daikin intends to strengthen its competitiveness in the Indian AC market. Product supply to Southwest Asia, the Middle East and Africa is also envisioned in the future.
Aiming to further improve the level of product quality and service, Daikin will also establish a research & training center within the factory grounds for the purpose of enhancing workmanship in terms of installation, commissioning, after sales service, etc.

The scale of the Indian AC market in fiscal 2007 is regarded as 110 billion yen, while AC ownership stands at less than two percent. Construction of large-scale commercial facilities and projects, including construction and upgrading of airports, has increased sharply accompanying recent economic growth. Air-conditioning demand is expected to surpass 200 billion yen in 2010.
Daikin Airconditioning India Pvt. Ltd. currently imports and sells air-conditioning equipment and enjoys high market share in the commercial-use luxury air-conditioning market, and has established the Daikin brand in the country. It has domestic sales bases in major cities and plans sales of approximately nine billion yen in fiscal 2007.
In year 2006 Daikin purchased OYL Industries and last year Daikin Airconditioning India Pvt. Ltd. newly established its applied business handling McQuay brand chillers (large-capacity air-conditioning heat source equipment). It then fully entered the market for large-scale projects such as airports. Large growth is forecast in India's commercial-use market in the future and Daikin intends to further increase its market share of large-scale projects. It projects sales in excess of 30 billion yen in fiscal 2010, the year the new Indian factory will be fully operational.

Outline of new factory
1) Location: Neemrana, Rajasthan, Republic of India
2) Investment amount: Approx. 3.7 billion yen
3) 160,000 square meters
4) Start of production: March 2009
5) Items produced: Multi-split type commercial-use air-conditioning equipment (VRV), large-capacity air-conditioning heat source equipment (air-cooled and water-cooled chillers)
6) Production capacity (on an annual basis): In the range of 20,000 VRV units and 1,800 chiller units

Outline of Daikin Airconditioning India Pvt. Ltd.
1) Company name: Daikin Airconditioning India Pvt. Ltd.
2) Location: New Delhi, Republic of India
3) Capital: Approx. 400 million yen
4) Investment ratio: Wholly owned subsidiary of Daikin Industries, Ltd.
5) Founded: April 2000
6) Business description: Production and sales of air-conditioning equipment
7) Employees: 230 (as of the end of September 2007)
8) Sales: Approx. 9 billion (2007 plan)

  For more information, please contact
     Daikin Industries, Ltd.
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