Daikin lays foundation stone for its upcoming third manufacturing plant in Sri City, Andhra Prades – The New Indian Express
NEW DELHI: Daikin India on Thursday said it had laid the foundation stone for its upcoming third manufacturing plant in Sri City, Andhra Pradesh, in which the air conditioner maker would invest Rs 1,000 crore in the first phase.
This new plant would be ready for commercial production in 2023 and would make Daikin India the largest manufacturer of air conditioners (AC) in India, according to a company statement.
Daikin plans to manufacture air conditioners and key components such as compressors at this plant for which Daikin has obtained government approval under the Production Linked Incentive (PLI) scheme.
“This Daikin India plant will meet growing domestic and international demand with its cutting-edge products,” Daikin said, adding that this unit would serve export markets such as West Africa, Sri Lanka, Bhutan, Nepal, Bangladesh and the Middle East. , South America and East Africa.
Daikin India is a 100% subsidiary of the Japanese company Daikin Industries, world leader in air conditioning.
“Our long-term strategy is to operate with an agile setup to react and adapt quickly to dynamic market demands by improving R&D capabilities and capabilities. All of this makes the Sri City plant strategically very important to us. It will be a marvel manufacturing plant to have all Industry 4.0 digitization standards,” said Daikin India President and Managing Director KJ Jawa.
With AC penetrations still at 7% in India, there is considerable potential for market expansion and growth, he said.
“With India’s status as a reliable manufacturing destination with favorable policies and ease of doing business affirmed by the Indian government’s PLI program, Daikin India is perfectly positioned to take advantage of the explosion in demand. expected over the next 5 to 10 years. Increased production capacity and sustained investment will enable Daikin India to continue to dominate the air conditioning industry,” he said.
According to industry sources, Daikin has so far invested more than Rs 2,000 crore in India to set up its two factories and a research and development (R&D) center in Neemrana, Rajasthan.