Japan’s leading air conditioning giant, Daikin Industries Ltd, has announced the construction of its largest global manufacturing hub in Sri City, Andhra Pradesh. This massive project spans over 75 acres and represents a major step in making India a global center for air conditioner (AC) production and innovation.
The new facility will not only manufacture residential and commercial air conditioners, but also produce key components such as compressors, motors, and circuit boards. With 75% of the manufacturing localized, the plant is expected to significantly reduce import dependency and boost India’s self-reliance in the cooling technology sector. According to Daikin India’s Managing Director, Kanwal Jeet Jawa, the company aims to make India a global manufacturing and export hub for its air conditioning products. (Source: The Economic Times)
A Global Export Powerhouse
Once fully operational, the Sri City facility will cater not only to the Indian domestic market but also to over 100 countries across regions such as the Middle East, Africa, South America, and Southeast Asia. This marks a massive expansion of Daikin’s global footprint and highlights the growing importance of India in the company’s international supply chain.
The export potential of this new hub aligns with India’s “Make in India” initiative, promoting the country as a global manufacturing powerhouse. The Indian government’s Production Linked Incentive (PLI) scheme for white goods has also encouraged global companies like Daikin to deepen their local investments. (Source: Business Standard)
Focus on Innovation and R&D
Beyond large-scale manufacturing, Daikin’s new facility will house a state-of-the-art Research and Development (R&D) center. The R&D unit will focus on developing energy-efficient, eco-friendly, and affordable cooling solutions tailored for both Indian and global markets. Engineers at the center will work on next-generation inverter technologies, sustainable refrigerants, and smart AC systems designed for changing climatic needs.
Daikin officials stated that the integration of R&D and production will help the company respond faster to evolving global demands and create products optimized for various climates. This focus on innovation-led manufacturing reflects Daikin’s long-term vision to make India a hub for advanced cooling technology. (Source: Financial Express)
Boost for Local Economy and Jobs
The project is expected to generate thousands of new jobs, both directly and indirectly. From skilled engineers and technicians to logistics and supply chain roles, the Sri City facility will open vast employment opportunities for locals. In addition, the creation of a large supplier ecosystem around the plant is likely to boost small and medium enterprises (SMEs) in the region.
The government of Andhra Pradesh has welcomed Daikin’s investment, emphasizing that it will strengthen the state’s position as a manufacturing hub for high-tech industries. The project aligns with the state’s strategy to attract foreign direct investment (FDI) and promote industrial growth through world-class infrastructure in Sri City. (Source: The Hindu BusinessLine)
India’s Rising Role in Global Manufacturing
Daikin’s move mirrors a broader trend among multinational corporations increasingly turning to India for large-scale production. Factors such as competitive labor costs, policy reforms, a growing domestic market, and an expanding logistics network have made India a preferred destination for manufacturing.
The new Daikin facility also supports India’s commitment to sustainable development. With the global focus on energy-efficient appliances, the company’s investment in green manufacturing will contribute to reducing carbon emissions and promoting climate-friendly technologies.
In a statement, Daikin executives highlighted that the Sri City plant will be a “model of modern manufacturing and sustainability,” using advanced automation, renewable energy, and smart production systems. (Source: Reuters)
Looking Ahead
The completion of this mega project will mark a new chapter in India’s industrial journey. With Daikin’s technological expertise and India’s growing industrial strength, the collaboration is poised to redefine how cooling solutions are developed and distributed worldwide.
As Daikin’s largest global hub takes shape in Sri City, it not only strengthens India’s reputation as a manufacturing leader but also reinforces the country’s role in driving green and innovative technologies for the future.
