Daikin Air-conditioning India, a wholly owned subsidiary of Daikin Industries Japan, on Thursday, announced the commercialisation of its integrated air-conditioning & compressor manufacturing facility at Sri City, Andhra Pradesh.
The new plant is spread across 75.5 acres, which aims to cater to the increasing demand for state-of-the-art air conditioning products manufactured in India, both domestically and internationally.
Daikin is the principal investor in the Production Linked Incentive (PLI) program in the air-conditioning category, which has been implemented by the government to encourage domestic production of air conditioners.
K J Jawa, Chairman and Managing Director of Daikin India, commented, “This facility will not only enhance our production capabilities but will also strengthen our position as a leading provider of energy-efficient and sustainable HVAC solutions in the region.”
Commenting on the occasion, Masanori Togawa, President & CEO, of Daikin Industries said “We have about 100 production units globally and a customer base in over 170 countries but India holds a special significance. As we expand our manufacturing footprint in India, we reemphasise the importance of India in Daikin’s global vision. The country’s dynamic market and skilled workforce align perfectly with our mission, and we are confident that the new facility will not only elevate the standard of HVAC solutions but also contribute significantly to the growth of the industry in India and the surrounding regions.
According to the company, the facility is dedicated to the development of climate-friendly air conditioning solutions for markets in West Africa, Sri Lanka, Bhutan, Nepal, Bangladesh, the Middle East, South America, and East Africa.
Industry reports anticipate an increase of 15-20 per cent in residential air conditioner (RAC) volumes for FY24, highlighting substantial growth potential.
This is attributed to the current low adoption rate, which stands at only 7-9 per cent among total urban Indian households, significantly lower than the 90 per cent observed in developed nations.
