Ravichandran Purushothaman, President, Danfoss India Region, at a press conference in Chennai, 26/3/26
Photo : Bijoy Ghosh
| Photo Credit:
BIJOY GHOSH
Danfoss India, a subsidiary of Danfoss Group, a Danish engineering company specialising in energy-efficient technologies for infrastructure, cooling, heating, and industrial automation, is planning to invest around ₹1,500 crore over the next five years. The investment will be used to accelerate production of compressors and battery energy storage systems, take advantage of cooling solutions demand from the data centre boom, and to increase its focus on energy-efficient solutions like heat pumps.
However, the ongoing US-Iran war, is also likely to pose a challenge to growth plans, and the company is monitoring supply chain disruptions and freight costs.
“We are expanding our localisation; our current localisation is about 55-57 per cent and we want to take it to 80 per cent,” Ravichandran Purushothaman, President, Danfoss India, said in an interaction with media persons on Wednesday. “We are also looking to double our production capacity in compressor plant in Bengaluru and are also expanding our footprint into newer products in India, especially more India-led,” he added.
Danfoss India is the fifth largest entity for the Group, and by the end of 2030, it will be the third biggest market for Danfoss, the executive added. “We are roughly 5 per cent of the global turnover roughly right now,” he added.
In financial year 2025 (January-December), Danfoss’ total sales reached EUR 9.4 billion, representing 3 per cent organic growth. Cash flow rose to a record EUR 734 million. The India region saw strong double‑digit growth in local currency, driven by strong momentum with OEMs and investments in the marine and infrastructure segments and data centre cooling systems. Danfoss invested about 5.3 percent in R&D in 2025. Globally, data centre sales reached approximately 7 per cent of our total sales, almost doubling year-on-year. “We expect our data center share to go from 7 per cent to about 10-11 per cent in 2026,” Purushothaman said.
As for the outlook for 2026, given the War, they are keenly watching any strain in demand from infrastructure sector and also expect cost escalation and logistics disruption to be among the key troubles for the entire sector.
“We are not seeing much impact till about first week of April on our supply chain. But what we are seeing as a challenge is the increase in freight for exports, availability of vessels for exports,” he said. “What used to take a normal time is getting extended by two weeks at the moment actually,” he added. Suppliers are also watching for shortage of LPG, PNG and Helium among other requirements, he added.
Purushothaman expects electrification of many applications as a result of the war, particularly the use of heat pumps.
Published on March 26, 2026
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