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Daikin India To Set Up Third Manufacturing Facility At Sri City, Andhra Pradesh
The new factory, to be completed by 2023, will elevate the company to become the largest manufacturer of ACs in India
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Daikin Air-conditioning India Pvt Ltd (Daikin India), a 100 per cent subsidiary of Daikin Industries Ltd., Japan (Daikin) – the world’s leading air-conditioning company, laid the foundation stone at the site of its upcoming third manufacturing facility at Sri City, Andhra Pradesh. This new factory, spread over 75.5 acres, will be ready for commercial production in 2023 and elevate Daikin India to become the largest manufacturer of air-conditioners (ACs) in India.
This Daikin India factory will serve the growing domestic and international demand with its cutting-edge products. 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, Middle East, South America and East Africa.
Daikin India is the first Japanese AC company to take this pioneering & leadership stride to invest in India at such scale with a view to give prominence to – ‘Atmanirbhar’ India Policy (self-reliance). Readying itself for growth and market expansion opportunity in India and an endorsing Indian government’s ‘Make in India’ vision, Sri City was chosen to set up the new manufacturing facility.
Commenting on the occasion, KJ Jawa, Chairman & MD, Daikin India, said, “This investment is an essential part of the long-term growth strategy of - ‘Fusion 2025’ - aiming to expand 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. It going to be a manufacturing marvel having all Industry 4.0 digitisation standards.”
With AC penetrations still at 7 per cent in India, there is considerable potential for market expansion and growth. Consumers are looking for energy-efficient and IA enabled products having low cost of ownership. At Daikin, we are witnessing a rapid adoption of ACs across the globe, thereby justifying this bold investment in India. “The combination of innovative Japanese technologies complimented by Indian production expertise will ensure the manufacturing of high-quality products and services which Indian and global consumers are looking for, thus fulfilling our philosophy of ‘in the market, for the market’. Consequently, we continue to investment in expanding our sales and marketing operations in India & export regions to enhance product & service backbone,” he affirmed.
With India’s status of a reliable manufacturing destination with favourable policies and ease of doing business affirmed by the Government of India’s PLI Scheme, Daikin India is perfectly poised to take advantage of the demand explosion predicted over the next five to 10 years. The augmented production capacity and sustained investments will ensure Daikin India continues to dominate the AC industry powered by – People, Product, Processes and Passion.
Commenting on the occasion, Ravindra Sannareddy, Founder MD, Sri City, said, “We are very pleased to welcome Daikin Group, into Sri City’s Japanese Enclave. As an endorsement to the ‘Make in India’ vision, and in line with the Government of India’s Production Linked Incentive Scheme (PLI), Daikin preferred Sri City to set up its first manufacturing base in Southern India, 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 3000 jobs.”