Daikin To Set Up Global R&D Centre In India With ₹1,000 Crore Investment

Daikin Industries is making another big bet on India. The Japanese air-conditioning company plans to invest ₹1,000 crore to set up a new research and development (R&D) centre here.

The centre will focus on building software and developing products for chillers and air-conditioning systems.

This comes at a time when demand for cooling is picking up across segments, from households to data centres. There is also a shift in how global companies see India now. It is no longer just about selling here, but also about building from here. So, what does this investment actually signal going forward?

What Is Daikin Planning With Its ₹1,000 Crore India Investment?

The focus of this investment will be on developing advanced air-conditioning technologies, including solutions for commercial use and data centres.

The company is expected to hire around 500 engineers. The location will likely be near Neemrana, where it already has a strong manufacturing base. That helps as research and production can work closely instead of operating in isolation.

Daikin already has multiple set-ups in India, including centres for R&D. But, this one is different. It will be Daikin’s first global R&D centre outside Japan. This means the work done here will not just be for India. It will feed into products and solutions used worldwide.

That is a significant shift. It moves India from being a support base to becoming part of Daikin’s global setup.

Why Is India Key To Daikin’s Growth Strategy?

India has been on Daikin’s radar for a while. The company has been expanding manufacturing, scaling distribution, and pushing deeper into the market year after year.

The numbers reflect that. Daikin India’s revenue is estimated to be around ₹13,000 crore, with steady growth. It has a target of ₹15,000 crore by FY27.

Besides India’s ability and efficiency, there could also be some structural reasons for this move. Air conditioner penetration in India is still relatively low. At the same time, temperatures are rising, urbanisation is picking up, and incomes are gradually improving. Cooling is no longer a luxury, but a necessity in many parts of the country.

So, the opportunity for this space is growing in India and that is where Daikin comes in.

Founded in 1924 and headquartered in Osaka, Japan, the company is one of the world’s largest HVAC (heating, ventilation and air conditioning) manufacturers. It operates across residential, commercial, and industrial cooling, with a presence in multiple global markets. The firm’s annual revenues cross $33 billion.

Now, India is starting to play a bigger role in Daikin’s overall business. The company wants it to be its largest base outside Japan.

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What Does This Mean For India’s AC Market And Investors?

When a global player puts this kind of money into R&D, it usually nudges the whole industry. Things start moving a bit faster.

In India, that could mean more competition for players like Voltas, Blue Star Limited and Bosch Home Comfort India.

From an investor’s point of view, Daikin itself is not listed in India. But the spillover effects could matter for the broader AC and cooling ecosystem.

At the same time, it is worth being cautious. Higher competition and increased investments could put pressure on margins, especially if companies are forced to spend more on technology and localisation without immediate returns.

If demand continues to grow, and if companies manage this transition well, the sector could see steady expansion.

Sources:

The Economic Times

ET EnergyWorld