Denmark-based Danfoss plans to make a fresh investment of Rs 500 crore in India as part of its investment-led strategy in India, led by the country’s strong growth outlook.

The capex will be spread over the next 12-20 months, primarily in localisation and expansion of capacity across its six factories.

To spearhead the expansion, the energy-efficient solutions provider will add more than 500 people, taking the total strength from about 3,400 to 4,000 by the end of this calendar year.

The company, which helps its customers to decarbonise their businesses, has identified four to five areas for localisation in order to take advantage of opportunities in the energy transition space.

Danfoss, which  supplies power modules for solar investors and controllers for connecting solar plants to the grid, sees growth opportunities with the government’s increasing focus on round-the-clock (RTC) power supply, as the company also offers standalone battery energy storage system (BESS) solutions.

The proposed investment is motivated by the need to build a value chain in order to prepare for the emerging business opportunities due to the realignment of the supply chain, and the PLI schemes to ais India’s energy transition and associated areas.