Daikin, a global innovator and provider of advanced, quality air conditioning, heating, ventilation, and refrigeration (HVAC-R) products and solutions, recently set up a training centre in Lagos, Nigeria. The Centre, which aims at providing technical vocational training and manpower development, is in furtherance of its mandate to bridge the skill gap in Nigeria, and Africa generally. In this interview with IFEOMA OKEKE-KORIEOCHA, Tuna Gulenc, Vice President-Sales at Daikin Middle East and Africa (MEA) speaks about the motivation for this initiative, the brand, and its breakthrough solutions for the Nigerian market. Excerpts:
Some say the Nigerian economy is very challenged at this time, yet Daikin is opening outlets locally. Why this confidence in the Nigerian market?
We are a long-term player in the market. We have developed markets and our strong business foundation in Europe, China, Asia, Middle East, starting with a long-term vision, clear strategy and consistent actions and the same applies to Africa.
By 2050, Nigeria is projected to be the third most populated nation in the world and will become a major player in the global economy. Yet the unemployment rate in Nigeria is estimated to reach 33 per cent along with a rise in the market. As a global player, we take responsibility to lead in developing markets and therefore want to provide the people of Nigeria what they deserve. Given the gap in the employment market, we want to engage in partnerships with relevant entities that will help us achieve our goal.
We established our Nigerian sales office back in 2020, and we have two distributors, selling and promoting our products and providing aftermarket support. The opening of our first training center in Nigeria recently, in partnership with ETIWA TECH LTD/GTE has helped us extend Daikin’s expertise and know-how to further build the skills and knowledge in the market. We want to train and hire people in the construction industry, we want to further develop and respond to the growing needs of the Nigerian market.
The new brand store opened earlier in June, in partnership with our authorised Dealer, aims to bring high-level innovation and expertise closer to consumers and provide exceptional products. Daikin experts at the store will also be able to best advise customers on what systems work best for their needs. Consumers can get full support on design, sales, installation, and aftermarket support.
The brand shop will help us introduce technologies and energy efficient products that ensure the best air quality and comfort, keep our commitment of contributing to the society and build knowledge and expertise to develop the skills of the people.
Daikin was founded in 1924. Where is the brand currently in the global air-conditioning and refrigeration market, and in Nigeria?
Daikin Industries Ltd. is a global leader and business powerhouse for manufacturing HVAC-R products. We are the world’s number one air conditioning manufacturing company especially given the number of employees, factories and our leading technologies.
A Forbes 1000 global company with 2021 revenues of nearly $27 billion and more than 88,000 employees worldwide, we have a global footprint of more than 100 factories with a strong presence in Japan, Europe, China, South Asia, India North America and Middle East and Africa. Daikin is considered a pioneer in bringing new technology and refrigerants to the industry in order to increase energy efficiency.
Daikin Middle East and Africa look after the MEA market and Africa is considered as the last frontier. In the 5-year management plan, development of African AC market, localization which means establishing a very strong local presence with sales, after-sales and training capabilities. To create a strong AC culture is a key priority for us.
As Africa becomes key priority for Daikin Group and considering Nigeria represents about 20 percent of the total population of sub-Saharan Africa, we saw a potential and therefore, it was our first and most important market to develop.
We opened our first local office in 2020, hired 11 Nigerian engineers and consultants in after sales and technical services. Our aim is to work hand in hand with local regulators, develop the ecosystem and form a strong sales network in the region. Along with developing a high-end market that has a strong culture of using AC’s, we want to build Daikin’s community that cares for the environment and future generations. Besides this, we are also market leaders in project business and have over 50 sale points in Nigeria.
In Africa, our first and foremost foundation for growth is to educate the technicians, train, and equip them to be readily available for providing services to our customers without any interruptions. We are committed to transferring our expertise to the regulators, extending our global expertise, and closely working with them as consultants to transform the HVAC-R industry in Africa.
Can you mention some of your key projects and clients in the country?
Daikin MEA has worked on several large-scale projects across residential, commercial, and industrial applications. Our two flagship projects in recent years: the renovation of the National Arts Theatre in Lagos, the iconic primary centre for the performing arts, and supplying Bourdillon, the leading architectural and design landmark in Lagos, with our VRV system equipment.
Your company recently introduced some breakthrough solutions into the Nigerian market. What are these?
In line with our clean environment and better air quality and energy efficiency strategy, our aim is to offer state of the art products to the Nigerian market that can help to increase energy efficiency, cut operating costs and improve customer satisfaction.
Given the market condition of Nigeria that sees regular electricity cut offs, it is important that products that consume less energy and electricity are used. Our Inverter technology reduces consumption by 30 percent as compared to traditional on/off systems.
R-32 is a next generation refrigerant that efficiently carries heat and has lower environmental impact. It efficiently conveys heat, can reduce electricity consumption up to approximately 10 percent compared to that of air conditioners using refrigerant R-22. It has a global warming potential (GWP) that is one-third lower and is remarkable for its low environmental impact.
Daikin is the global leader of the VRV market and has brought the technology to Nigeria. It is a multi-split flexible smart system that uses variable refrigerant flow control developed by Daikin to deliver optimum energy savings.
We developed the Daikin Gas Tight Joint (DGT), a fire-free that requires no brazing design and is compatible with most air-conditioning installations.
A recent report by the United Nations Food and Agriculture Organisation said, about 19.4 million people faced food insecurity across Nigeria between June and August 2022. Daikin refrigeration units are up to 50 percent more energy efficient than other units. Our heat recovery and inverter technologies significantly reduce energy costs therefore limiting food wastage.
There is a view that some brands in the market are ‘untropicalised’ and insensitive to local realities such as energy availability and fluctuations. How does Daikin factor Nigeria’s peculiarities into its research and development?
Daikin develops and designs products that are specially made to each region. In Africa, our systems are equipped with Auto Voltage Stabiliser (AVS) and built with robust structure to handle the harsh conditions. Along with an improved compressor design for hot climates, the packaging is also designed to suit Nigeria’s market conditions.
The HVAC-R industry has been identified as a major contributor to global Climate warming. What is Daikin doing to reduce the carbon footprint for instance, and to alleviate the Climate Change challenges especially in Nigeria and Africa?
Given the growth of the world’s population and urbanisation, creating more cities and buildings is unavoidable. Use of AC systems across all living spaces to create comfortable living and working environments is necessary. While AC continues to become a necessity, we are working hard to make it environmentally-friendly as well.
Demand for cooling is increasingly driven by Africa’s urbanisation and growth, Daikin’s strategy is to develop cooling systems to support a sustainable growth of the economy by reducing the energy and the refrigerant induced emissions from the operation of its products. In the spirit of the Paris Agreement, Daikin has formulated Environmental Vision 2050, with a target of reducing greenhouse gas emissions to net zero by 2050. We have established a reduction target for 2030 and incorporated this into our efforts under the Fusion 25 Strategic Management Plan.
At Daikin, we provide solutions that change everyday life for the better. We challenge the evolving climate change with our innovative sustainable solutions and strive to create a new value for the citizens of this world through improved air quality and environment for building a sustainable society. We want to ensure that protection of the environment and improvement of comfort coexists. We are setting new standards in indoor comfort living with unrivalled energy efficiency solutions that are flexible, scalable, and cost-efficient for our customers. Our innovations limit the impact of HVAC-R on the environment (lower emissions, recovery of refrigerants). Daikin uses lower global warming refrigerants (R-32) to reduce environmental and climate impacts.
Over the years, due to the tightening of regulations, there is a growing awareness towards energy efficiency. We developed our Inverter Air Conditioners that have helped spread higher energy efficiency performance and deliver faster, powerful and more comfortable environments. Standards and labelling programmes are important to guide consumers to choose an energy efficient air conditioner. We are supporting the introduction of standards and evaluating the energy efficient performance of inverter technology across our product ranges. In response to supporting the future talent, we are collaborating with local training institutes to train technicians on new technologies.
Daikin is the only comprehensive air conditioner manufacturer developing everything from refrigerant to air conditioners and engaging in the recovery, recycle and destruction of refrigerants. In addition to disseminating low-global-warming-impact refrigerants worldwide, we strictly manage refrigerants during the production, after-sales, and other stages, and we recover, recycle, and destroy refrigerants at the end of air conditioner life so that we can reduce environmental impact throughout the entire life cycle. With a focus on Indoor Air Quality, we also offer a Refilter programme for analysis, optimisation and improvement of HVAC systems.
On a personal note, is this your first visit to Nigeria, and what are your impressions of the country and its people?
I have visited Nigeria a few times. Every time I visit, I feel more attached to the country and the people I meet. The country is full of professionals and high-caliber individuals. We have also had the honour of recruiting some of these personnel who are now a part of the Daikin family.
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