Daikin signs land deal with Sri City

VIsakhapatnam/Vijayawada Daikin Air-conditioning India Pvt. Ltd., a 100% subsidiary of Daikin Industries Ltd., Japan-the world's leading air-conditioning company on Friday signed the land lease deed at Sri City for manufacturing ACs and components, as part of the recently announced PLI by the Government of India for promoting domestic manufacturing in the AC manufacturing sector.

The project which will be operational from 2023 has been allotted 75.5 acres.

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), according to a press release.

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, the release stated.

Speaking on the loccasion, 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."

He said "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.

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."