Published On:September 25 2021
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Japanese AC major Daikin to set up third manufacturing facility in Andhra Pradesh.

Daikin India will set up its third manufacturing plant in Andhra Pradesh. The company said this expansion is part of its investment proposal for the recently announced PLI scheme for AC components, making it the first Japanese player to invest under the scheme.

The company inked a land purchase deal at Sri City in Andhra Pradesh to set up a facility that will manufacture ACs and components. The plant will cater not only to domestic demand, but also establish India as a regional hub that will serve international markets.

The company is expected to invest about ₹1,000 crore in the first phase to construct the facility.

It is acquiring land of over 75 acres and the plant is expected to become operational by 2023.

KJ Jawa, Chairman and Managing Director, Daikin India, said the company wants to make India a manufacturing hub to serve markets such as West Asia, Sri Lanka, South America and Africa.

‘India is the fastest growing market for us. Daikin has a clear strategic intent to enhance its air-conditioning, air filtration and refrigeration portfolio, for which India has been identified as a developmental hub. We believe India has the potential to become our offshore delivery centre for R&D and exports," he said.

Jawa added that with AC penetration still at 5-6 per cent, there is huge potential for growth of the air-conditioners segment in the country.

Daikin India’s manufacturing facility in Andhra Pradesh has the potential to create over 3,000 jobs.

The company currently has two manufacturing facilities in Rajasthan and had been scouting for a possible location for its third plant in southern India.

“With the launch of the third manufacturing unit at Sri City, Andhra Pradesh, Daikin aims to achieve aggressive market growth in AC exports over the next few years,” Jawa added.


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