The Hindu Business Line : Daikin acquires Shriram group's stake in jt venture

DAIKIN Industries Ltd, Japan (DIL), today announced the acquisition of 20 per cent stake held by the Shriram Group in Daikin Shriram Airconditioning Pvt Ltd (DSL).

With this acquisition, DSL has become a wholly owned subsidiary of DIL and would be named Daikin Airconditioning India Pvt Ltd.

According to the company, Daikin views this acquisition as a significant milestone in its India initiative, which it has considered to be a significant destination in its business map.

For the Shriram Group, the sale of its stake in DSL is part of an overall plan of exiting their air-conditioning business. However, Usha International Ltd (a Shriram Group Company) will continue functioning as a dealer for Daikin's products.

Speaking on this development, Mr Hayashi Toshiki, Managing Director, Daikin Airconditioning India Pvt Ltd, said, "India offers huge potential for our world-class products. In the new arrangement, we continue to sustain our efforts with fresh mind and introduce the latest tech-savvy products which are backed by Daikin's global R&D efforts, which would fuel growth in the air-conditioning industry in India."

According to Daikin, the acquisition is a part of the turn-around strategy developed by DSL's local management to improve financial and operational performance of the venture.

DIL entered the Indian market in the year 2000 by forming DSL as an 80:20 venture with the Shriram Group.

The initial years of the venture were utilised in exploring the market and building a strong brand presence in the country.

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