The compressor manufacturing unit of Japanese air conditioning and refrigeration giant, Daikin Industries, will soon be established in Sri City, Andhra Pradesh, at an investment of ₹1,000 crore. It will be executed in a partnership with Taiwan's Rechi Precision and the product of this unit will be rotary compressors that are integral to both inverter and non-inverter air conditioners. As per a company statement, the compressors will also be exported to select countries.
The company, Daikin, will have the majority share of this venture. The investment will come into force during the present financial year. The facility in Sri City, which is spread over 75 acres, is to be the largest in the region in Southeast Asia.
Currently, Daikin is producing 2 million air-conditioning units every year in India. The company plans to increase the production capacity up to 5 million units by 2030. It is also a part of Daikin's plan to grab a major chunk of the domestic air conditioning market.
This will help Daikin to offer air-conditioning products at affordable prices to the Indian middle class. The group hopes that, by bolstering its local production capabilities, it will be able to meet growing demand while not sacrificing competitiveness.
