Daikin Shriram to upgrade products, expand dealer network

Our Marketing Bureau in Mumbai

In a bid to spur the commercial air conditioner market, the Rs 38-crore Daikin Shriram Airconditioning Pvt Ltd — a 80:20 joint venture between Japan-based Daikin Industries and Siddharth Shriram group company — has upgraded its existing range of split and commercial air conditioners. The company targets its sales turnover to touch Rs 100 crore and expects to achieve break-even in the current financial year, says Daikin Shriram Airconditioning managing director Mr Takao Nakamoto.

Adds Mr Nakamoto: “Once we achieve a sales turnover of Rs 200 crore, we will look forward to various consolidation plans which may include setting up a greenfield project. We will also work on the possibility of converting Indian operations into a wholly-owned subsidiary.”

To meet the target, the company will unveil a new range of commercial air conditioners with outdoor units in 4.1 tonne, 6.4 tonne and 7.7 tonne capacities. Comments Daikin Shriram Airconditioning general manager (marketing) Mr Rajnish Ohri: “In the current air conditioners market scenario, while split air conditioners is growing at 8-10 per cent and market for window air conditioners is stagnant, that for commercial air conditioners is growing at 25 per cent and is likely to grow by an additional 20 per cent by 2002-end.”

Daikin Industries has chosen India as a hub for exporting its range of air conditioners to South-Asian markets and plans to set up Daikin Solution Plaza in Chennai, Lucknow and Chandigarh at an investment of Rs 30 lakh by next year-end. The company targets to expand its existing number of dealers from 160 to 250 by 2002-end.” The new range will be available under the brand name ‘Shriram’ priced between Rs 39,000 and Rs 3.40 lakh.

The company will release advertisements for the new range by the end of this month at an investment of Rs 6 crore compared to Rs 2 crore last year.