Daikin Industries, Ltd. (Head office: Osaka, Japan; President and COO: Yukiyoshi Okano) established Daikin Air Conditioning Greece S.A., a sales affiliate for air conditioning equipment, in Athens, Greece, on May 29, 2006. (Capitalization: 1 million euros [approximately 140 million yen]; Head office: Athens)
In December 2003, Daikin opened the Daikin Greece representation office to focus on market research and build a sales network in Greece. With a foundation in place after two years of operation, the new company was incorporated as a wholly owned subsidiary of Daikin Europe N.V., a subsidiary of Daikin Industries, Ltd, to further improve market access. (With the establishment of the new sales affiliate, the representation office has been abolished.)
Previously, all of the European sales affiliates selling air conditioning equipment (10 companies in total) had been established through mergers with existing local distributors. However, this represents the first time that a sales affiliate has been independently established and brings the total number of European sales affiliates to eleven companies.
Sales for this year are estimated to reach 25 million euros (approximately 3.5 billion yen). By building and strengthening the sales network covering the entire country of Greece and increasing the sales force, Daikin will set its sights from this time forth on achieving sales of 48 million euros (approximately 6.7 billion yen) in the year 2010.
The air conditioning market in Greece ranks 6th in overall sales in Europe and occupies roughly 6% of the total demand in Europe at 300 million euros (approximately 42 billion yen; fiscal year 2004 estimates by Daikin). It is also a fiercely contested market based on price where residential air conditioners occupy 60% of the total sales amount.
Because of the country's Mediterranean climate, air conditioning is a necessity in Greece where the distribution rate ranges between 40-50%, the highest level in Europe. With the establishment of this new company, Daikin aims to strengthen current sales activities and firmly establish the Daikin brand in the Greek market.