Daikin Industries, a Japanese airconditioning systems manufacturer, will finally be expanding in Kenya as part of its global strategy to increase its footprint across the emerging markets.
Its entry was delayed in 2020 due to the Covid-19 pandemic.
“Kenya has been globally highlighted as the new hot spot for business growth and Daikin is poised to partner in this economic & infrastructural development,” Daikin Industries said in an emailed statement Tuesday.
The East African market has great potential for air conditioning penetration, which will be supported by the Daikin production facilities in India, according to Daikin India Chairman and managing director Kanwal Jeet Jawa.
“We are introducing cost-competitive and reliable products to the East African market specifically customized for this weather patterns, and fulfilling Kenya’s energy labelling standards. We are strong believers in cost competitiveness which is offering quality products at the right price through local partnerships, powered by advanced technology and with value-addition. Despite being a price-sensitive market, East Africa has the potential to grow our sales which we will aim to achieve through our volume zone strategy,” said Jawa.
The company operates multiple research and development labs across India, that is steadily exploring air conditioning products that are future-ready, eco-friendly and affordable.
The India manufacturing facility currently produces over 1 million air conditioning units annually and with the new facility operational over the next few years, it will take Daikin’s total production capacity to 2.5 million air conditioning units.
Daikin seeks to replicate the Indian success model across all emerging markets including East Africa mainly due to the price-sensitivity similarities and create a strong foothold and prominence through – People, Processes, Products, Distribution & Brand.