Chennai: Danish company Danfoss A/S has decided to pump in Rs 100 crore towards expanding its drives’ production near here, said a top official in India.
He also said that exports out of its plant near here went up by 15 per cent during the Covid-19 pandemic due to non-production in Danfoss’ other plants.
The company also plans to increase its headcount by 300 persons from the current about 950.
With the central government announcing PLI for various sectors, more companies will be investing in expansion, which in turn augurs well for Danfoss drives, Ravichandran Purushothaman, President, Danfoss India, said.
He said, the fresh investment of Rs 100 crore will also increase the local content in the company’s drives from 40 per cent to 90 per cent by 2022.
The company drives find extensive applications in industries such as Food and Beverages, Plastics, HVAC, Air Compressor and Textile OEMs, Chemical, Cement, Steel, Water, Oil & Gas, Marine, Paper and others.
Danfoss India is a wholly-owned subsidiary of $6.3 billion-euro Danfoss A/S.
The company’s business segments are classified under power solutions, cooling, drives and heating and it supplies components and systems for original equipment manufacturers.
Purushothaman said exports orders increased during the current year owing to lockdown of Danfoss factories in other places due to Covid-19.
This year, our exports grew by 15 per cent. Last year, we shipped out about Rs 500 crore worth of products, Purushothaman said.