Daikin Air-conditioning India has laid the foundation stone for its 3rd manufacturing facility at Sri City, Andhra Pradesh.
The new facility coming up with an investment of ₹1,000 crore, is expected to be ready for commercial production next year and would make Daikin India the largest manufacturer of air-conditioners (ACs) in the country serving the growing domestic and international demand.
In line with Daikin’s aspiration to achieve net zero CO2 emissions by 2050, the company will develop climate-friendly ACs to serve export markets such as West Africa, Sri Lanka, Bhutan, Nepal, Bangladesh, the Middle East, South America and East Africa.
“This investment is an essential part of the long-term growth strategy of ‘Fusion 2025’, aiming at expanding and balance our global manufacturing footprint to best serve customers worldwide. Our long-term strategy is to operate with an agile set-up to swiftly react and adapt to dynamic market requirements by enhancing capacities and R&D capabilities. All this makes Sri City factory strategically very important for us,” KJ Jawa, Chairman & MD, Daikin India said.
With AC penetrations still at 7 per cent in India, there is a considerable potential for market expansion and growth. Consumers are looking for energy-efficient and IA-enabled products with alow-cost of ownership. At Daikin, we are witnessing a rapid adoption of ACs across the globe, thereby justifying India investment, it said.
As an endorsement to the ‘Make in India’ vision, and in line with the Centre’s Production Linked Incentive Scheme (PLI), Daikin preferred Sri City to set up its first manufacturing base, owing to its world-standard infrastructure and thriving Japanese ecosystem. We are also pleased to announce that, Daikin is the first major brand to join Sri City this year, with the potential to create over 3,000 jobs, said Ravindra Sannareddy, Founder MD, Sri City.
April 07, 2022