Japan's Daikin Industries Ltd has announced plans to establish a new research and development subsidiary in India, focusing on heating, ventilation and air-conditioning systems. According to reports from Essential Business Intelligence, the company's board of directors approved the establishment of Daikin Research and Development India Private Limited at a meeting held on Saturday. The new entity is scheduled for completion by June 2028 and will be located in Haryana, serving as a core base for developing products and solutions for markets including Asia, Oceania and Africa.
The proposed subsidiary will have a registered location in New Delhi and is expected to be established in July 2026. As reported by Essential Business Intelligence, the subsidiary will have a capital base of ₹8 billion, or approximately JPY 13.6 billion based on an exchange rate of ₹1 to JPY 1.7. Daikin Industries will hold 100% ownership of the subsidiary through the Daikin Group, including 0.001% indirect ownership. The company stated that 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.
According to Essential Business Intelligence, 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 increased demand for HVAC systems for large-scale facilities has created significant growth opportunities. The company emphasized that strengthening local product development capabilities had become necessary to address market-specific requirements, including regulatory needs. 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 establishment of India-specific research and development centers is part of a broader localization trend that manufacturers are increasingly focusing on, with companies designing products that address unique Indian consumer requirements such as voltage fluctuation tolerance, high ambient temperature performance, water-saving technologies, and compact urban living spaces.
The new R&D centre will particularly support development work for large-scale HVAC systems, addressing the growing demand across the Global South. As reported by Essential Business Intelligence, rising construction of data centres, factories and commercial facilities has created substantial market opportunities for HVAC systems. The facility will serve as a core base for developing products and solutions for markets including Asia, Oceania and Africa, positioning India as a strategic hub for the company's global expansion plans. The localization trend is creating significant opportunities for domestic suppliers and contract manufacturers, with local vendors becoming increasingly integrated into appliance supply chains and helping develop a stronger ecosystem for components, packaging materials, tooling, and industrial services.
