Chennai, May 27 : Heating, ventilation and air conditioning (HVAC) systems global major Danfoss is setting up a 1 MW solar power plant at its upcoming facility in Oragadam, around 55 km from here, a senior company official said, adding the company will also expand its distribution network in smaller cities to cash in on the increasing demand for its products.

"The Rs. 6 crore solar power plant with a five-year pay-back will satisfy 10 percent of our energy needs. The project will go on stream when our new plant starts operations by September/October," Danfoss India president Ravichandran Purushothaman told IANS.

He said the solar power plant is part of the Danish group's global plan of cutting out its carbon footprint by 25 percent by using use renewable energy to the extent of 25 percent by 2025.

The 4,509 million euro turnover Danfoss is a global leader in making products that save energy and reduce emissions. Its products are used in cooling food, air conditioning, heating buildings, controlling electric motors and power mobile machinery.

According to Purushothaman the solar power panels will be mounted on the roof top (factory, car park) and on the ground.

"As the panels are mounted on factory rooftops it takes off sizeable heat and saves on power spent on our air conditioning," he added.

Purushothaman said the company's upcoming $100 million facility will perhaps be the first platinum rated green building/factory in Tamil Nadu.

Even though Danfoss expects a weak to moderate growth globally, the Indian subsidiary closing 2013 with a turnover of $100 million, is looking at double-digit growth.

Purushothaman said the Indian company will be focussing on expanding its distribution network to take advantage of demand from smaller towns.

"Though we primarily sell our products to big air conditioning companies we see demand from smaller towns where some cold storage projects are executed by small players," he remarked.

He said Danfoss India has around 50 channel partners and plans are afoot to increase the same by adding 60 more.

The seafood, meat industries are logging around 15 percent growth. Similarly diary sector is also growing. These sectors needs refrigeration wherefrom demand for our products are derived, Purushothaman said.

According to him, commercial air conditioning segment is the problem area as demand has chilled because of the general slow down in the economy and other factors.

Queried about India being an export hub for some of the products, Purushothaman said the filter driers earlier made in the group's Mexican plant is made here and shipped out.

"Similarly pressure switches made here are exported to Asia Pacific market and also to China," he said. (IANS)