Daikin Air conditioning, India, is eyeing a turnover of at least $2 billion during the financial year 2024-25, backed by an exponential growth of domestic market, greater export opportunities and the government’s support under Atma Nirbhar Bharat and the PLI scheme. The new plant at Sri City, Andhra Pradesh, for manufacturing of air-conditioners and components as part of the PLI scheme is expected to be ready for commercial production by this year-end. It will expand the company’s room ACs production capacity by one million units, and help it grow exports in existing and new markets.
“The construction of the plant is almost getting over. Production of compressor at the plant will start somewhere around July-August, 2023, while room AC production will start around September-October. For getting the PLI benefit, we have to have production from the new plant next year and we are on schedule, on time and on cost,” said Kanwaljeet Jawa, Chairman and MD at Daikin Air conditioning India. This 75-acre plant will be the company’s third manufacturing base after facilities at Neemrana, Rajasthan.
Total production capacity of the two plants in Neemrana for room air-conditioners stands at 1.5 million units per year.“Our new factory at Sri City will have an additional capacity of 1 million units per annum. So essentially, by the next calendar year, we will have a total capacity of 2.5 million room air-conditioners,” Jawa informed, adding the company currently has around 18-19 per cent market share in the country’s split room AC category.