Daikin–Rechi Begins Work On ₹547-Crore Compressor Plant In Sri City
The facility will come up on 33.10 acres with a planned built-up area of 1.33 lakh square metres and will be developed in three phases: Reports
NELLORE: Daikin–Rechi India Pvt. Ltd. on Wednesday commenced construction of its rotary compressor manufacturing facility at Sri City, marking a significant boost to India’s Heating, Ventilation and Air Conditioning (HVAC) manufacturing sector.
The joint venture between Daikin Air-conditioning India Pvt. Ltd., a wholly owned subsidiary of Japan’s Daikin Industries Ltd., and Taiwan’s Rechi Precision Co. Ltd., will invest ₹547 crore in the first phase. The project is expected to generate around 500 direct jobs.
The bhoomi pooja ceremony was led by Kanwaljeet Jawa, Chairman and Managing Director of Daikin India, along with Sekida Naoto, Director of Daikin–Rechi India, and senior leadership teams from both companies.
The facility will come up on 33.10 acres with a planned built-up area of 1.33 lakh square metres and will be developed in three phases. Phase I will establish production lines with an annual capacity of 2 million rotary compressors, scalable to 9 million units in subsequent phases. The compressors will initially cater to domestic air-conditioner brands before expanding to export markets.
Jawa described the project as a milestone in Daikin’s localisation journey under the Prime Minister’s ‘Make in India for the World’ vision, stating that it would strengthen the HVAC ecosystem, facilitate technology transfer and enhance skill development. He thanked the Andhra Pradesh government and Sri City management for their support.
Sri City founder and Managing Director Dr Ravindra Sannareddy termed the investment a major addition to the region’s OEM and supply chain network, reflecting collaboration between Japanese precision, Taiwanese expertise and Indian enterprise.