Financial Daily from THE HINDU group of publications
Wednesday, Apr 20, 2005
Financial Daily from THE HINDU group of publications Wednesday, Apr 20, 2005 |
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Corporate
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Outlook Daikin looks to post profits this fiscal Our Bureau
Mr. Hayashi Toshiki (right), Managing Director, Daikin Airconditioning India Pvt Ltd, with Mr S. Egawa, Deputy General Manager Global Operations, Daikin Industries Ltd. (Japan), at a press conference in the Capital on Tuesday. - Kamal Narang
New Delhi , April 18 JAPANESE air-conditioner maker Daikin Industries Ltd today said that it would be posting a net profit this fiscal. "We had a net loss of Rs 1 crore in the just-ended financial year on a turnover of Rs 130 crore. This fiscal we hope to make net profit and expect turnover to grow to about Rs 150 crore and post a net profit of about Rs 3 crore," said Mr Hayashi Toshiki, Managing Director of Daikin India, at a news conference. The company, which entered India in 2000 with an 80:20 joint venture with the Shriram group, bought over the Indian partner's 20 per cent stake in November last year, and Daikin India is now a fully-owned subsidiary of the $6-billion Japanese major. Mr Toshiki said that the company has made investments of about Rs 70 crore so far in India, which includes the Rs 50 crore pumped in by the parent company last year to wipe out accumulated losses. The company, however, made it clear that it did not intend to set up assembly or manufacturing facilities in India until volumes cross 100,000 units a year. It currently imports the products from its facilities in Thailand and Japan. The company has benefited from the Indo-Thai Free Trade Agreement (FTA), with about 60 per cent of its imports from Thailand, gaining as a result of the duty reductions, Mr Toshiki said. Daikin sold some 20,000 units in the Indian market last year. The company is bullish about the growth prospects of the Indian market and has said that the market is likely to witness 16-18 per cent growth this fiscal, higher than the other world markets. The premium segment in the split air-conditioners market would see demand perking up by 30-35 per cent, according to the company. The company, which is present in 100 Indian cities through 200 dealers, is eyeing a turnover of Rs 500 crore in the next five years. Daikin India operates in the high-end segment of the AC market, with almost 70 per cent sales being to commercial establishments and 30 per cent to the household segment.
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