Chennai: A large contingent of officials from Danfoss Industries, a $2.2-billion Danish company, is camping in Chennai to explore more business options in India. The business ideas include setting up a new refrigerator compressor plant and sourcing software from India.

Danfoss, the largest industrial group of Denmark, is a leading producer of precision mechanical and electronic components and of intelligent mechatronic devices. In India the company focuses basically on three product lines - refrigeration, air-conditioning, motion controls, heating and water.

The company has an assembly unit in Chennai through its 100-per cent subsidiary, Danfoss Industries, where it assembles refrigerator-condensing units, and has a turnover of $12 million. Danfoss is now looking at the possibility of building a scroll compressor used in commercial refrigeration and air-conditioning equipment.

Says Guillermo Diaz Trillo, president (commercial compressors): "Nothing has been decided on the investment front. But we are looking at the possibilities of setting up a compressor-manufacturing unit. It could be scroll or reciprocating."

According to him, Danfoss has a plant in China. But the Chinese market is so buoyant that the production there is completely absorbed leaving nothing for exports. "Whether to expand that plant or set up a new one to cater to the other markets is the question that has to be answered." If the company decides to put up a plant in India, the capex incurred will be around $100 million.

On the software side, Danfoss is planning to source software solutions from Indian vendors. According to officials, the Asian software giant Tata Consultancy Services has made a presentation about its capabilities. Says Sven Ruder, president (motion controls): "We are discussing as to the ways to build business in India."

As part of its global launch, Danfoss launched its state-of-the-art VLT AutomationDrive FC 300 used in applications like winders, elevators, palletisers, cranes, bottle washers, textile machines, hoists and centrifuges where torque is an essential criteria. "Drives contribute 67 per cent of the motion control division's revenue," says Ruder.

According to him the new drive will be shipped from the company's Denmark or US plant. "Economies of scale do not warrant a new plant outside these two countries." Says P Ravichandran, vice-president (motion controls) of the Indian outfit: "The new drive is the result of detailed customer research."