Daikin Industries Ltd has announced plans to set up a new research and development subsidiary in India and build an R&D centre in Haryana, as rising construction of data centres, factories and commercial facilities drives demand for large-scale HVAC systems across the Global South.
The company said its board of directors approved the establishment of Daikin Research and Development India Private Limited at a meeting held on Saturday. The new entity, which is scheduled to be completed by June 2028, will be set up in Haryana and will focus on the development of heating, ventilation and air-conditioning systems. The facility will serve as a core base for developing products and solutions for markets including Asia, Oceania and Africa.
The company said the move comes amid rapid economic growth and urbanisation in the Global South, which has led to rising construction of data centres, factories and commercial facilities. This, in turn, has increased demand for HVAC systems for large-scale facilities.
Daikin said strengthening local product development capabilities had become necessary to address market-specific requirements, including regulatory needs.
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India has been chosen as a development hub due to its engineering and IT talent base, as well as the growing presence of related industries, the company said. The new R&D centre will particularly support development work for large-scale HVAC systems.
The proposed subsidiary will have a registered location in New Delhi and is expected to be established in July 2026. It will have a capital base of Rs 8 billion, or about JPY 13.6 billion, based on an exchange rate of Rs 1 to JPY 1.7.
Daikin Industries will hold 100% ownership of the subsidiary through the Daikin Group, including 0.001% indirect ownership. The representative and personnel details are yet to be decided.
The company said the establishment of the subsidiary is expected to have a minimal impact on its consolidated financial results for the fiscal year ending March 31, 2027.
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