Danfoss has announced plans to invest ₹1,500 crore in India over the next five years as part of a broader strategy to strengthen its manufacturing base, expand localization, and accelerate new product development in one of its fastest growing global markets. The investment, scheduled between 2026 and 2030, reflects the company’s confidence in India’s industrial growth trajectory and its rising importance in Danfoss’ global operations.
Company officials said India continues to play a central role in Danfoss’ long term strategy, supported by strong momentum in infrastructure development, electrification initiatives, and sustainability focused policies. In 2025, Danfoss India recorded strong double digit growth in local currency terms, driven largely by increased demand from original equipment manufacturers and expanding investments across infrastructure and marine sectors. According to Ravichandran Purushothaman, President of Danfoss India, data centre cooling solutions have emerged as a particularly important growth segment as India rapidly scales its digital infrastructure.
The company is also expanding its domestic manufacturing footprint as part of its localization strategy. Danfoss aims to increase localization levels from the current 50 to 60 percent range to nearly 80 percent by 2030, supported by the development of a stronger supplier ecosystem. A major new manufacturing facility currently under construction on a 45 acre campus in Talegaon near Pune is expected to be ready early next year. In Bengaluru, the company is doubling compressor production capacity to support railways, metro systems, and electric buses.
India is also becoming an important innovation and engineering hub for Danfoss. The company operates four Global Capability Centres across the country with approximately 3,500 to 3,700 employees, about half of whom are engineers. Additional investments are planned in battery storage projects, including collaboration with NTPC and a pipeline estimated at around 2 gigawatts. The company is also developing multiple application centres in India to support customer simulation and testing requirements.
Danfoss expects India’s contribution to its global operations to rise significantly over the next several years. Currently accounting for about five percent of total global revenue, India is targeted to become the company’s third largest market by 2030. Around 40 percent of production from the Chennai facility is already exported, and the company expects between 20 and 25 percent of its global product output to originate from India within the next five years. Key growth sectors identified include liquid cooling systems for data centres, marine electrification technologies, cold chain infrastructure for food and seafood industries, and renewable energy integration solutions including battery storage.
Globally, Danfoss reported sales of €9.4 billion in 2025 with organic growth of three percent. Operational EBITA reached €1.213 billion with margins improving to 12.9 percent, while net profit rose by 21 percent to €446 million. The company said its data centre business nearly doubled year over year and now contributes seven percent of total sales. For 2026, Danfoss expects revenue between €9.1 billion and €10.6 billion, with operational EBITA margins projected in the range of 12.8 to 14.3 percent, even as supply chain disruptions and higher freight costs linked to geopolitical tensions in West Asia continue to present challenges.
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