Daikin Partners with Rechi Precision to Enhance Rotary Compressor Manufacturing in India.

Daikin Industries has announced a joint venture with Rechi Precision Co. Ltd to manufacture, design, and sell rotary compressors in India and international markets. Daikin Airconditioning India, a subsidiary of Daikin India, will hold a 51% stake in the joint venture, while Rechi Precision will own the remaining 49%.

This collaboration aligns with India’s push for local manufacturing in the air conditioning ecosystem, with the government advocating for greater domestic production. The joint venture is expected to be operational by the fourth quarter of FY 2024-25, with plans to establish a 33-acre manufacturing site in Sri City, Andhra Pradesh. The partners are projected to invest approximately ₹1,000 crore over the next 4-6 years.

A joint statement highlighted that the venture would combine Daikin India’s market leadership, technical expertise, and sales network with Rechi Precision’s rotary compressor technology and manufacturing capabilities. This partnership aims to provide cost-effective air conditioning solutions, addressing the growing demand for cooling in India.

KJ Jawa, Chairman & Managing Director of Daikin India, expressed enthusiasm about the partnership, noting that it would enable the company to expand its offerings and deliver advanced rotary compressor technologies for residential HVAC solutions. He emphasized that the combination of Daikin’s extensive sales network and Rechi Precision’s compressor expertise would provide customers with more economical and efficient air-conditioning options.

In the initial phase, the focus will be on providing test samples of Rechi Group Taiwan’s rotary compressors to Indian air conditioner manufacturers for adoption and evaluation.

Shoji Uehara, Executive Officer of Daikin Industries, explained that the joint venture is part of Daikin’s mid-term strategy to establish a major hub in India. The venture will help address supply shortages, cater to both Daikin’s internal and external demand, and contribute to India’s “Make in India” initiative.

Rechi Precision, for its part, will provide key technical expertise, research and development, product innovation, and production engineering support to establish a strong sales and service network in India.

HBL