Danish company Danfoss will invest close to $100 million in India over the next two years.

The $6 billion company makes components that help improve energy-efficiency and are used in various industrial applications like air conditioning, heating buildings, controlling electric motors and powering commercial vehicles.

The investments will go into expanding its manufacturing and R&D presence in the country, the company’s president and CEO, Niels Christiansen said. Danfoss generates revenue of about $100 million from its India operations and is targeting revenues of $1200 million by 2015, Christiansen said.

The company has been present in India for over 15 years now, and has a manufacturing unit near Chennai which makes filter-driers for refrigeration and air-conditioning units.

Danfoss has already invested close to $88 million for its manufacturing plant and R&D unit in India and is in the process of setting up a new centre in Oragadam near Chennai, he said. “The R&D centre will be among the largest for the company ,” he said. Danfoss now has about 500 employees in India, half of them in the R&D team,” he said.

Danfoss will also channel the investments for expanding the reach of its products into tier-2 cities in India, and also expand its product portfolio in India . The company currently has filter-dries for refrigeration , pressure controls for airconditioning products, and power drives for other Industrial applications. “We are looking at a number of other product lines, but we haven’t finalized them yet,” Noel Ryan, the company’s global head for commercial compressors said.

On completion of the new centre at Oragadam near Chennai , the company plans to make Chennai a global hub for sourcing some of its products. “Some products we make here are also made in Denmark, Mexico or other locations but we plan to have a few products that will be made solely in the Indian manufacturing unit,” Ryan said.