Daikin Establishes Global Capability Centre in India
Pioneering Technology and Services Development
Japanese air-conditioner manufacturer Daikin has taken a significant step by setting up a Global Capability Centre (GCC) in India. This initiative comes in partnership with EY, focusing on enhancing capabilities in various areas, including information technology, digital services, data management, finance, artificial intelligence, and related fields. A senior official from Daikin made this announcement recently.
Details of the New Facility
The new GCC will be situated in Gurgaon and will be named the Daikin Innovation and Services Hub. This facility is expected to employ nearly 700 personnel, marking a substantial investment in India’s workforce.
A Strategic Move, Not Just Cost Reduction
It is essential to note that Daikin’s objective in establishing this hub is not merely to reduce costs but to build these essential capabilities within India. According to a corporate presentation, this facility is set to be a precursor to a larger, future GCC in the country.
Shifting Mindsets
The success of this initial project could pave the way for additional centres in India. A transformative shift in the mindset of Daikin’s parent company has facilitated the opening of this GCC, alongside India’s vast talent pool.
Significance of Indian Operations
As per the company executive, the Indian market is becoming increasingly vital for Daikin. India is expected to contribute significantly to the parent company’s growth in the coming years.
Robust Market Presence
Daikin is one of the largest players in the air-conditioning market in India, with projected revenues of Rs 12,500 crore for the fiscal year 2024-25.
Global Production Hub
In addition to expanding capabilities, Daikin aims to establish India as a global production hub. This includes exporting air-conditioners to diverse markets such as Africa, South America, Sri Lanka, Bangladesh, and Bhutan.
New Export-Oriented Plant
To further enhance its production capabilities, Daikin is also in the process of setting up an export-oriented plant in Sri City, which will support its global supply chain effectively.
Diversification into Component Manufacturing
Furthermore, Daikin has ventured into component manufacturing in India, including the production of compressors. This diversification highlights the company’s commitment to developing local capabilities.
Leadership Representation
Notably, KJ Jawa, the managing director of Daikin India, is also the only non-Japanese member on the board of the parent company in Japan, showcasing the importance of Indian leadership in the organization’s strategy.
Conclusion
Daikin’s establishment of the Global Capability Centre in India marks a pivotal moment for both the company and the country’s industrial landscape. This strategic initiative underscores the importance of India in Daikin’s global operations and points towards a promising future for technological and economic collaboration.
Questions & Answers
1. What is the purpose of Daikin’s Global Capability Centre in India?
Daikin’s GCC aims to build capabilities in IT, digital services, data management, and AI, among other areas, focusing on strategic development rather than cost reduction.
2. Where will the new facility be located?
The Daikin Innovation and Services Hub will be located in Gurgaon, India.
3. How many employees will the facility employ?
The facility is expected to employ around 700 personnel.
4. What are the projected revenues for Daikin in India for 2024-25?
Daikin anticipates revenues of Rs 12,500 crore in India for the fiscal year 2024-25.
5. Who is KJ Jawa in relation to Daikin?
KJ Jawa is the managing director of Daikin India and the only non-Japanese member on the board of the parent company in Japan.
