Daikin to Establish Southeast Asia's Largest Factory in Andhra Pradesh

Japanese air-conditioning giant Daikin has announced plans to invest INR 1,000 crore in Andhra Pradesh. The company aims to operationalize this investment within the current fiscal year. In partnership with Taiwan-based Rechi Precision, Daikin will set up a compressor manufacturing unit in Sri City, spanning approximately 75 acres. The facility is expected to be the largest of its kind in Southeast Asia.

The unit will manufacture rotary compressors used in both inverter and non-inverter air conditioners, catering to export markets. Daikin will hold a majority stake in the joint venture with Rechi Precision.

With this new facility, Daikin will have three manufacturing units in India. The company currently produces two million compressors annually across its two existing units and targets expanding production capacity to five million units by 2030.

Daikin stated that this strategic expansion will make air conditioners more affordable for middle-class consumers in India. The company also expressed its ambition to become a market leader in air-conditioner sales in the Indian market.