Danfoss India, the Indian subsidiary of Danfoss Group, a Denmark-based engineering company specialising in energy-efficient technologies, plans to invest around ₹1,500 crore over the next five years. The investment will support the company’s strategy to expand manufacturing capabilities, accelerate innovation, and tap into emerging opportunities in data centre cooling, compressors, battery energy storage systems, and heat pump technologies. The move comes at a time when rapid growth in data centres and increasing demand for energy-efficient infrastructure are creating new opportunities for advanced cooling and electrification solutions.
Focus on Localisation and Manufacturing Expansion
As part of its expansion strategy, Danfoss India is working to increase localisation of its manufacturing operations. Currently, the company’s localisation level stands at around 55–57%, and it aims to increase this to approximately 80% in the coming years. Ravichandran Purushothaman, President of Danfoss India, highlighted the company’s plans during a media interaction. “We are expanding our localisation; our current localisation is about 55–57 per cent and we want to take it to 80 per cent,” he said. In addition, the company plans to double production capacity at its compressor manufacturing plant in Bengaluru while expanding into new India-led product segments.
Data Centre Boom Drives Cooling Demand
The rising demand for data centre infrastructure is emerging as a major growth driver for Danfoss. With global digitalisation accelerating, the need for advanced cooling systems and energy-efficient technologies has increased significantly. Globally, data centre-related sales now account for about 7% of Danfoss’ total revenue, nearly doubling year-on-year. According to Purushothaman, the company expects this share to increase to around 10–11% in 2026 as investments in digital infrastructure continue to grow.
India Emerging as a Key Market
Danfoss India is currently the fifth-largest market for the Danfoss Group. However, the company expects India to become its third-largest market by 2030. At present, India contributes around 5% of the company’s global revenue, but strong growth in sectors such as infrastructure, marine applications, OEM partnerships, and data centre cooling is driving expansion.
Electrification and Heat Pumps Gain Momentum
Purushothaman believes that global energy disruptions could accelerate electrification across multiple applications, particularly in heating and cooling systems. One technology expected to benefit from this shift is heat pumps, which offer energy-efficient heating solutions and support decarbonisation efforts in residential, commercial, and industrial sectors.
As reported by thehindubusinessline.com, by investing in advanced cooling systems, battery energy storage solutions, and heat pump technologies, Danfoss aims to strengthen its position in the global energy-efficient infrastructure and climate solutions market while supporting India’s transition toward a more sustainable energy future.
