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issue: September 2008 APPLIANCE Magazine

International Report: India
Daikin Sets Up AC Manufacturing in India

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by Adite Chatterjee, India Correspondent

Air-conditioning activity in India: Daikin invests in manufacturing as ISHRAE and AHRI harmonize standards.

APPLIANCE Correspondent in New Delhi - Adite Chatterjee reports on the Appliance Industry in India:

The impact of online shopping for appliances.
• India’s energy labeling makes its mark.
• Appliance industry incentives in the India budget.
• Consumer durables grow in 2008.

India’s growth story continues to attract interest from global companies. Daikin Industries Ltd. (Osaka, Japan) is one of them. Daikin’s wholly owned subsidiary in India, Daikin Airconditioning India Pvt. Ltd., has been importing and selling air-conditioning equipment and has established itself in the commercial-use premium air-conditioning market in India. Now the company plans to invest Rs 1600 million (approx. US$38 million) to set up a production facility in Neemrana, in the state of Rajasthan. The factory will become operational by September 2009 and the company expects to reach sales revenues of about Rs 11 billion (approx. US$260 million) by financial year 2010.

Daikin is partnering with Rajasthan State Industrial Development and Investment Corp. (RIICO) in the Neemrana venture. The managing director of Daikin Airconditioning India was quoted in the Indian media saying the company aims to serve India locally manufactured products as much as possible.

Daikin’s current plans are based on the steady economic growth that the country has enjoyed, leading to a rise in disposable incomes, consumerism, and changing lifestyles. Moreover, Daikin India’s compound annual growth rate of about 35% in the past three years has also given a fillip to its expansion plans.

India and U.S. Harmonize on HVACR Equipment Performance Standards

The Indian Society of Heating, Refrigeration and Air-Conditioning Engineers (ISHRAE) will get access to equipment and component performance standards from the Air-Conditioning, Heating and Refrigeration Institute (AHRI) to facilitate the development of harmonized standards that address India’s specific needs.

The agreement sets forth a framework that promotes a process for effectively sharing AHRI’s standards. The agreement provides ISHRAE with the ability to more widely disseminate AHRI’s standards among the nation’s standards developers; it establishes a process to ensure ISHRAE is notified when AHRI standards are revised and updated; and it provides ISHRAE greater access to AHRI’s standards developers to assist them with technical issues relating to India’s specific needs and conditions.

According to ISHRAE president Ashish Rakheja, India has a rapidly growing need for credible HVACR equipment performance standards. “Our country has become a hub for multinational companies and we are experiencing major growth, especially in the construction of multi-million-square-foot buildings,” he said. “The engineers responsible for these projects are bringing with them an awareness of the importance of standardization and international best practices. In addition, India is becoming a major force in the green movement led by the Indian Green Building Council and supported by an LEED rating system and the launch of the Energy Conservation Building Code last year. For these reasons, we need to strengthen our equipment performance standards, which is why we turned to AHRI for assistance in this area through this agreement.” 


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