Daikin Expands Manufacturing in India with PLI Scheme

By the end of 2023, Daikin Air-conditioning India Pvt. Ltd. will have commenced operations at its third state-of-the-art manufacturing facility in India. The 75-acre new factory, situated in Sri City, Andhra Pradesh, will serve as a testament to Daikin's dedication to innovation and excellence. It is strategically positioned to cater to the increasing demand for state-of-the-art air conditioning products manufactured in India, both domestically and internationally. Daikin is the principal investor in the Production Linked Incentive (PLI) program in the air-conditioning category, which is implemented by the government to encourage domestic production of air conditioners.

The establishment of the new factory will substantially increase Daikin's production capacity, thereby bolstering the expansion of the brand in India & overseas. This expansion is positioned to make a substantial contribution to the continued success of Daikin in India. Residential air conditioner (RAC) volume growth is anticipated to increase significantly by 2025, according to industry reports, indicating substantial growth potential. The present low adoption rate of 7-8% among urban Indian households as a whole is the cause of this, which is considerably lower than the 90% rate observed in developed countries. Moreover, there is a growing trend among consumers to prefer energy-efficient products that have a diminished total cost of ownership. As a result of observing the rapid global proliferation of air conditioners, Daikin increased its investments in India in preparation for the construction of a third manufacturing facility.

“The establishment of the new Daikin facilities across India signifies not only the organization's extravagant commitment to excellence but also a noteworthy achievement in its far-reaching worldwide strategy. With these long-term investments across – People, processes, technology, R&D and skill development, Daikin India envisions to strengthen its standing as the preeminent producer & seller of air-conditioning equipment, refrigeration, purification & compressors throughout India & overseas. Our cutting-edge factory & production standards exemplify the organization's dedication to environmental stewardship and sustainability, in line with Daikin's goal of attaining Net Zero carbon dioxide emissions by the year 2050. The future factories will be committed to the research and development of environmentally sustainable air conditioning systems for East Africa, West Africa, Sri Lanka, Bhutan, Nepal, and Bangladesh, as well as the Middle East and South America”, said KJ Jawa, Chairman & MD, Daikin India.

Given India's burgeoning reputation as a dependable manufacturing hub, its favourable policies, progressive government reforms, and streamlined business environment, Daikin India is strategically positioned to capitalise on the anticipated surge in air conditioning demand over the subsequent 5-10 years. Consistent investments and increased production capacity will guarantee that Daikin India remains the undisputed leader in the air conditioning industry, bolstered by its superior products, technology, brand, and distribution.