- The move is anticipated to bolster Daikin’s product position into the thriving commercial air-conditioning market.
- The transaction deal has been speculated to be around Rs 100 to Rs 125 crore ($1.3 million to $1.7 million).
The ongoing COVID-19 pandemic has compelled businesses operating in the air-conditioning field to come up with vivid industry tactics such as acquisitions, collaborations, and partnerships in a bid to cater to the rising customer needs and taking a prominent space in the overall market. In one such instance, Daikin Airconditioning India has recently announced the acquisition of air handling business of Ahmedabad-headquartered Citizen Industries.
It has been apprehended that this novel move would help the company to enhance its product positioning into the thriving air conditioning market while supporting Daikin to emerge as a complete player into the domestic air-conditioning market providing a comprehensive solution into the segment. Speculations have it that the transaction deal is likely to be sealed at around Rs 100 to 125 crore or USD 1.3 to 1.7 million.
As per credible sources, integration of Citizen’s business would result in acquisition of the ongoing air-side maintenance contracts, horizontal collaboration with American Air Filter, expansion into VRV and applied solution business, thereby catalyzing the economies of scale at the Daikin India factory placed at Rajasthan and its R&D center.
Commenting on this recent move, MD and CEO of Daikin Airconditioning India- Kanwal Jeet Jawa quoted that the recent acquisition of Citizen Industries’ air handling unit business would offer enhanced prominence to its current infrastructure influence while also supporting increased penetration across diverse applications.
Besides, the company can now boast of an entire range of ventilations systems including the applied chillers, air side and controls. He also added that the merger would help Daikin upgrade some of its existing products at the same time and using the cross company benefit allowing the firm’s commercial business to rise from 25% to 35% by 2021 onwards.