Danfoss is proud to support the nation's infrastructure requirements with its efficient technological interventions

RAVICHANDRAN PURUSHOTHAMAN

President, Danfoss India

What are your views on the Union Budget 2023-24?

In the vision for Amrit Kaal, India@100, the placement of Green Growth among the seven priorities will have a significant impact on the industry. This move will provide a much-needed boost to India's ambitious NZE target as it seeks to drive decarbonization and sustainable development. The allocation of funds towards the National Hydrogen Mission, priority capital for achieving energy transition, Green Credit Programme, and Viability Gap Funding for BESS are promising steps that will steer the economy towards sustainable development. Danfoss is aligned with the government's vision and intends to be the preferred decarbonization partner in India's Net Zero journey. The budget interventions for infrastructure and investment, digitalization, supporting the food processing sector, skilling of youth, and transportation are expected to spur growth. With the support of the government's favorable budget proposals, we are hopeful that 2023 will be a game-changer.

How far will the Budget help in pushing the further growth of your business segment?

India is currently at a crossroads in which transitioning to low-carbon systems can lead to economic growth. Union Budget 2023 has several initiatives that can potentially boost Danfoss India's business. The highest ever outlay of Rs 2.4 lakh crore for Railways can create opportunities for the company to supply its energy-efficient solutions to various infrastructure projects. Through the association with the Indian Railways on these projects, Danfoss is proud to support the nation's infrastructure requirements with its highest standard of efficient technological interventions to keep India's trains and metros safe and sustainable.

The National Green Hydrogen Mission announced in the Union Budget 2023-24 is a significant step towards reducing India's carbon footprint and achieving the country's goal of reaching net-zero emissions. There's allocation of Rs 35,000 crore for priority capital investment towards energy security. As India starts to put a lot more focus on green growth, there will be new hotspots emerging in infrastructure, healthcare, metro projects, high-speed trains, food supply chain, data centres, etc.

Implementation of the Budget proposals is key. What are your views in this direction?

One of the key challenges in implementing the budget proposals is ensuring efficient and timely utilization of funds. Another important factor for successful implementation is ensuring collaboration between different stakeholders, including government agencies, private sector, and civil society organizations. Effective collaboration can help streamline efforts, ensure efficient utilization of resources, and enhance the overall impact of the initiatives. This includes regular monitoring and evaluation of the progress made in achieving the intended outcomes and ensuring that the funds are utilized in the intended manner. This can help address any challenges or issues that may arise during the implementation process and ensure timely course correction if needed.

Considering the year 2023-24 is the penultimate year of election, what kind of push in project execution are you expecting this year?

The penultimate year before the general elections is usually critical for the government. It is an opportunity to highlight its performance and impact on people's lives. As a result, the government may look to push for project execution and delivery to demonstrate its commitment to development and welfare. The government is likely to focus on expediting ongoing projects to ensure that they are completed on time and within budget. This may involve the allocation of additional resources, such as funds, manpower, and technology, to address any bottlenecks or delays that may be hindering progress.

Throughout the Budget, a vision is laid out for 'Green Growth' across multiple sectors, with the underlying idea that all future growth in the country must be environmentally responsible. The budget has already announced initiatives such as the National Green Hydrogen Mission and the Clean Air Programme, which can have a significant impact on reducing greenhouse gas emissions and improving air quality. The government may look to accelerate the implementation of such initiatives to showcase its commitment to sustainability and environmental protection.

How are you planning your investment and expansion plans in the year 2023-24?

Over the last few years, Danfoss has invested around $300 million in India. With sustained double-digit growth, we anticipate further investments from the Danfoss group and our global strategy involves strengthening core businesses through enhanced R&D. Our team added over 1,400 technical professionals during and after the pandemic to capitalize on emerging opportunities, bringing our total headcount to approximately 3,400. In India, Danfoss will focus on tapping into emerging business segments that align with India's decarbonization mission, such as PLI schemes, infrastructure, healthcare, metro projects, high-speed trains, food supply chains, and data centres. These areas are expected to provide new opportunities for strong growth.

What kind of growth are you expecting in the year 2023-24? What is your outlook?

In India, Danfoss celebrates its 25th anniversary and is on its way to becoming a preferred sustainability partner supporting India's climate agenda of green transition. The topline double-digit growth for Danfoss India Region in 2022 contributed to the parent company's historical success. In addition, the strong order pipeline gives us a solid foundation for 2023. The company plans to expand to 80 Indian cities in the next two years. Our focus will be on localization of products and tapping into new segments arising from India's decarbonization plans. The Government of India has identified Green Growth as one of the key priorities for Amrit Kaal, which makes Danfoss India even more relevant to the energy efficiency needs of businesses across sectors.

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