APN News

  • Friday, September, 2021| Today's Market | Current Time: 10:06:10
  • First Japanese AC company to invest under the PLI scheme in India

    3rd Factory for Daikin India

     Daikin Air-conditioning India Pvt. Ltd., a 100% subsidiary of Daikin Industries Ltd., Japan – the world’s leading air-conditioning company today signed the land lease deed at Sri City for manufacturing air-conditioners (AC) and components, as part of the recently announced Production Linked Incentive Scheme (PLI) by the Government of India for promoting domestic manufacturing  in the AC manufacturing sector.

        Location:         Sri City, Andhra Pradesh

        Total Area:      75.5 Acres

        Operations From:        Year 2023

    Daikin India is the first Japanese AC company to take this pioneering and leadership step to invest in India, with a view to give prominence to – ‘Atmanirbhar’ India (self-reliant). Sensing a big manufacturing opportunity in India, and as an endorsement for the Indian government’s ‘Make in India’ vision, Daikin chose Sri City in Southern India as one of the hottest next destination to set up its 3rd manufacturing base.

    Speaking on the Momentous occasion, Kanwaljeet Jawa, MD & CEO, Daikin India affirmed, “For the AC segment, as a strategy, we are increasing our focus on markets that are witnessing rapid growth. India is the fastest growing market for us. Daikin has a very clear strategic intent to enhance its Air-conditioning, Air filtrations & refrigeration portfolio for which India has been identified as a developmental hub. We believe India has the potential to become our offshore delivery centre for R&D and exports. We believe it can serve as a regional hub for markets such South America, Middle East and Africa.”

     “With AC penetrations still at 5-6 percent in India, there is huge potential for air conditioner, and consumers are looking for energy-efficient products with a lower total cost of ownership. At Daikin, we are witnessing a faster adoption of ACs across the globe pointing us towards making this investment in India,” Jawa added.

    He further said, “The favourable business environment here, coupled with world class infrastructure, talent pool and support from both the state and central governments, etc., will certainly pave the way for some more investments from the small, medium and large scale companies of Japan.”

    Speaking on the Land Signing Presentation, Ravindra Sannareddy, Founder Managing Director, Sri City said, “We feel extremely glad to welcome Daikin Group, a worldwide leader in air-conditioning and refrigeration, with global headquarters in Japan, to the Sri City community. Daikin’s choice to locate their production unit at Sri City, their first in Southern India, underlines it as an attractive location for the consumer durables industry.”

     “We are pleased to announce that this is the first major investment in Sri City this year, with a potential to create over 3000 jobs and reaffirming the fact that Andhra Pradesh, with its very competitive incentive policy and investor-friendly business environment, remains at the top of investors’ minds around the globe and across various sectors,” Ravindra Sannareddy added.”

    With India gaining a status of a reliable manufacturing destination, favourable policies, bold government reforms and ease of doing business, Daikin India took the first move towards a significant investment over the next two – three years. This 3rd factory of Daikin will serve both domestic & international markets with its cutting edge India-manufactured products. With the starting of the third manufacturing unit at Sri City, Andhra Pradesh, Daikin aims to achieve aggressive market growth in the AC exports over the next few years. Daikin wants to make India its manufacturing hub to serve markets such as West Asia, Sri Lanka, Middle East, South America and Africa.