Daikin Air-conditioning India has revealed its plans to initiate operations at its third manufacturing facility in India by the end of 2023, according to a media release issued on Monday.
The upcoming 75-acre factory, located in Sri City, Andhra Pradesh, is strategically positioned to meet the rising demand for domestically and internationally manufactured air conditioning products in India.
Daikin declares its primary investment status in the production linked incentive (PLI) program in the air-conditioning category, a government initiative aimed at promoting domestic production of air conditioners.
Citing industry reports that project substantial growth potential, Daikin notes that the volume of residential air conditioner (RAC) sales is expected to witness significant growth by 2025.
The current low adoption rate of 7-8 per cent among urban Indian households is a contributing factor, notably lower than the 90 per cent rate observed in developed countries.
Furthermore, there is a discernible consumer trend toward favoring energy-efficient products with reduced total cost of ownership. In response to the global proliferation of air conditioners, Daikin has ramped up its investments in India, paving the way for the establishment of its third manufacturing facility.
KJ Jawa, Chairman and Managing Director of Daikin India states, “With these long-term investments across – People, processes, technology, R&D and skill development, Daikin India envisions to strengthen its standing as the preeminent producer & seller of air-conditioning equipment, refrigeration, purification & compressors throughout India & overseas.”
He further said, “Our cutting-edge factory & production standards exemplify the organization’s dedication to environmental stewardship and sustainability, in line with Daikin’s goal of attaining Net Zero carbon dioxide emissions by the year 2050. The future factories will be committed to the research and development of environmentally sustainable air conditioning systems for East Africa, West Africa, Sri Lanka, Bhutan, Nepal, and Bangladesh, as well as the Middle East and South America.”
Capitalising on India’s reputation as a reliable manufacturing hub, favorable policies, progressive government reforms and a streamlined business environment, Daikin India is poised to leverage the anticipated surge in air conditioning demand over the next 5-10 years, as outlined in the media release.
