By 2030, India will be our biggest manufacturing hub

Japanese air conditioning firm Daikin has drawn big plans for its India operations.

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It aims to double its capacity to make India its largest global manufacturing hub by 2030.

Daikin India chairman and MD K.J. Jawa talks to Raghav Aggarwal about the outlook for the AC market, the impact of seasonal demand fluctuations, and how the company plans to tap India's potential to drive both domestic sales and global exports.

How do you view the current Indian AC market and its future potential?

India's residential AC penetration is still low at around 7%, which signals massive headroom for growth. With rising incomes, increased electrification, housing demand, smarter homes and greater environmental awareness, we expect adoption to rise significantly in the coming years. The commercial AC segment is also poised for strong growth, especially as urban infrastructure expands. Daikin India already holds an 18-19% market share in the residential segment and over 60% in the commercial VRV (variant refrigerant volume) systems category. We believe we are well-positioned to lead the market as it matures.