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Danfoss to invest ₹1,500 crore over next 5 years on data centre cooling and heat pumps

Danfoss to invest ₹1,500 crore over next 5 years on data centre cooling and heat pumps

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Danfoss to invest ₹1,500 crore over next 5 years on data centre cooling and heat pumps

by Asia Today Team
March 26, 2026
in Tech
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Ravichandran Purushothaman, President, Danfoss India Region, at a press conference in Chennai, 26/3/26
Photo : Bijoy Ghosh

Ravichandran Purushothaman, President, Danfoss India Area, at a press convention in Chennai, 26/3/26
Photograph : Bijoy Ghosh
| Photograph Credit score:
BIJOY GHOSH

Danfoss India, a subsidiary of Danfoss Group, a Danish engineering firm specialising in energy-efficient applied sciences for infrastructure, cooling, heating, and industrial automation, is planning to take a position round ₹1,500 crore over the subsequent 5 years. The funding can be used to speed up manufacturing of compressors and battery power storage techniques, reap the benefits of cooling options demand from the information centre increase, and to extend its concentrate on energy-efficient options like warmth pumps.

Nevertheless, the continued US-Iran conflict, can also be more likely to pose a problem to development plans, and the corporate is monitoring provide chain disruptions and freight prices.

“We’re increasing our localisation; our present localisation is about 55-57 per cent and we need to take it to 80 per cent,” Ravichandran Purushothaman, President, Danfoss India, mentioned in an interplay with media individuals on Wednesday. “We’re additionally seeking to double our manufacturing capability in compressor plant in Bengaluru and are additionally increasing our footprint into newer merchandise in India, particularly extra India-led,” he added.

Danfoss India is the fifth largest entity for the Group, and by the tip of 2030, it will likely be the third largest marketplace for Danfoss, the manager added. “We’re roughly 5 per cent of the worldwide turnover roughly proper now,” he added.

In monetary 12 months 2025 (January-December), Danfoss’ whole gross sales reached EUR 9.4 billion, representing 3 per cent natural development. Money circulation rose to a document EUR 734 million. The India area noticed robust double‑digit development in native foreign money, pushed by robust momentum with OEMs and investments within the marine and infrastructure segments and knowledge centre cooling techniques. Danfoss invested about 5.3 p.c in R&D in 2025. Globally, knowledge centre gross sales reached roughly 7 per cent of our whole gross sales, nearly doubling year-on-year. “We anticipate our knowledge middle share to go from 7 per cent to about 10-11 per cent in 2026,” Purushothaman mentioned.

As for the outlook for 2026, given the Struggle, they’re keenly watching any pressure in demand from infrastructure sector and likewise anticipate value escalation and logistics disruption to be among the many key troubles for the whole sector.

“We aren’t seeing a lot impression until about first week of April on our provide chain. However what we’re seeing as a problem is the rise in freight for exports, availability of vessels for exports,” he mentioned. “What used to take a traditional time is getting prolonged by two weeks for the time being really,” he added. Suppliers are additionally expecting scarcity of LPG, PNG and Helium amongst different necessities, he added.

Purushothaman expects electrification of many purposes on account of the conflict, significantly the usage of warmth pumps.

Revealed on March 26, 2026



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