Danfoss India Records Double-Digit Growth in H1 2024

India remains the fastest-growing region for the Danfoss Group, with strong double-digit growth in H1 driven by increasing opportunities in energy efficiency and electrification, supporting the Group’s ambitious plans to double sales in India by 2025.

August 31, 2024. By News Bureau

Danfoss India, a subsidiary of the Denmark-based Danfoss Group, has witnessed vital growth in the domestic market and the company is confident of doubling its sales by 2025 and will be implementing new strategies. Danfoss continues to see strong performance and stability, especially in its various verticals which are climate solutions, drives, and most of the electrification businesses.

Ravichandran Purushothaman, President, Danfoss India, remarked, “India continues to be the fastest growing region for Danfoss group, and we're proud to be at the forefront of the country's sustainable transformation. With the rapid expansion of data centres, commercial buildings, and cold chain infrastructure, coupled with the government's strong support for decarbonisation, we're confident in our plans to double sales by 2025.”

He further added, “Our innovative products and solutions are designed to support India's carbon neutral ambitions, and we're committed to being a trusted partner for our customers as they navigate this journey.”

The Group’s global sales amounted to EUR 5 billion, and a half-year EBITA of EURO 533 million corresponding to an EBITA margin of 10.6 percent as against 12.4 percent last year.

According to the statement issued by the company, Danfoss India is experiencing robust growth, driven by the rapid expansion of data centres, commercial buildings, and cold chain infrastructure across the country.

Additionally, the Indian government's strong push towards decarbonisation, coupled with initiatives like the Production-Linked Incentive (PLI) schemes, is further fuelling the growth momentum.

Globally, after three years of significant growth, organically and through M&A, the first half of 2024 has proven to be challenging for Danfoss Group due to lower demand in select key markets. The company is exploring strategic alternatives to reduce its cost base. The expected growth and profitability performance are dependent on the development of global supply chain stability, the geopolitical environment, and inflation as well as general global growth rates.

Danfoss Group has also initiated the implementation of an updated operating model, aiming to further support the long-term growth strategy, strengthen innovation and improve performance. “Guided by a focus on market and customer proximity, scalability, and simplification, we want to establish stronger end-to-end accountability in the business, increase cost competitiveness, and speed up decision-making across the company,” noted the statement.

The activity level in Europe and China continues to be soft and is expected to continue for the rest of the year, while the US shows signs of a slowdown. However, India continues to demonstrate strong growth momentum.

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