Johnson Controls sets up unit in Chakan

Pune: Johnson Controls (JC) India Pvt Ltd has commissioned its first production facility in Chakan near Pune to make chillers and customized refrigeration equipment.

The entire project, which envisages manufacture of larger chillers from 1,000 to 3,500 tonnes for use in air conditioning systems for SEZs and IT parks. The company will set up make air handling and fan coil units over the next five years, according to Mr Pramoda Karkal, Vice-President and Managing Director India, Building Efficiency division, JC.

The new plant—christened York India Ltd (acquired by JC in December 2005) since the process of the merger of the two legal entities is still underway and is expected to be completed by March 2008— will manufacture two models of chillers. The local content at the moment is around 10%, and will be increased to 65% in the next year, Mr Karkal said, adding that compressors would continue to be imported from China.

With an installed capacity of 1,000 chillers per annum, part of the production from the Chakan unit will be used to service a $16 million contract from the Indian Navy for heating, ventilation and air conditioning systems for four new ships. The first of the deliveries will be made by March 2008.

JC India is a wholly owned subsidiary of the $36-billion, Milwaukee, US-based Johnson Controls. The new plant is expected to generate revenue of Rs 60 crore in the first year, Mr Karkal said.