Daikin Industries (TYO:6367) sees strong growth potential in India and the Southern Hemisphere as air conditioner adoption spreads, Nikkei reported Wednesday, citing Chairman Emeritus Noriyuki Inoue in an interview.

Inoue, who stepped down in 2024, said the company is shifting from local production to centralized manufacturing, with India positioned as a hub to supply Southern Hemisphere markets, according to the report.

He said faster factory construction and hiring overseas have helped Daikin stay ahead of rivals, with about 85% of sales generated abroad, the report said.

While global residential demand is slowing outside Japan, Inoue pointed to India, Africa, and South and Central America as key battlegrounds, citing limited local manufacturing capacity in many hot-climate countries, according to the report.

He also said Daikin must cultivate a third growth pillar beyond air conditioning and chemicals over the next decade to avoid falling behind competitors, the report said.

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