Daikin India signs land deal at Sri City, Andhra Pradesh
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Sri City, Andhra Pradesh, India – Daikin Air-conditioning India Pvt. Ltd., a 100 percent subsidiary of Daikin Industries Ltd., Japan – one of the world’s leading air-conditioning companies has signed the land purchase deal at Sri City, Andhra Pradesh, for manufacturing of ACs & components as part of the recently announced PLI scheme by the Government of India in the AC manufacturing space.

Daikin India is the first Japanese AC company to take this pioneering & 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 an endorsement for the Indian government’s ‘Make in India’ vision, Daikin chose Sri City in Southern India as one of the hottest next destinations to set up its third manufacturing base.

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 third 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.

Speaking on the Momentous occasion, KJ Jawa, Chairman & Managing Director, 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.

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.”