Construction of Carrier’s ₹863 Crore Manufacturing Unit Begins in Sri City

Nellore: Andhra Pradesh has taken a major step toward becoming “India’s Cool Capital” on Wednesday with the Carrier Global Corporation beginning the construction of its ₹863-crore air-conditioning and refrigeration manufacturing facility at the Sri City Special Economic Zone in Tirupati district — the company’s first manufacturing unit in South India.

AP IT minister N. Lokesh led the landmark ground-breaking ceremony in the presence of Revenue minister Anagani Satya Prasad, Carrier Global chairman and CEO David L. Gitlin, Carrier Climate Solutions president Michael L. Gierges, Carrier India managing director Sundaresan Narayanan, industrialist Srini Raju, and Sri City founder and managing director Ravindra Sannareddy.

Calling the event a “historic milestone,” Lokesh said the Carrier project will not only create substantial employment, but also accelerate Andhra Pradesh’s ambition of building a full-stack industrial ecosystem — spanning energy, AI-driven data centres, advanced cooling systems, and next-generation manufacturing.

“Carrier’s arrival is a strong endorsement of Andhra Pradesh, our industrial ecosystem, and Chief Minister N. Chandrababu Naidu’s vision,” the minister declared, underlining that the state is rapidly emerging as a global hub for manufacturing and digital infrastructure with its focus on “speed, scale, and execution.”

Highlighting Andhra Pradesh’s rapid rise in the HVAC sector, Lokesh said the state has already earned recognition as “India’s Cool State,” with nine major AC manufacturers, over 30 component suppliers, and investments exceeding ₹12,000 crore. He asserted that AP will contribute nearly 60 per cent of India’s air-conditioner production by 2027, with the figure likely to rise to 80 per cent soon after.

The minister said Carrier’s presence would trigger the growth of supplier networks, attract ancillary industries, strengthen global supply chains, and create thousands of jobs for local youth. He praised Sri City’s inclusive industrial model, pointing out that nearly half of its workforce comprises women. He went on to name Sri City as “Stree City.”

Lokesh explained that the state aims to build India’s first fully integrated ecosystem — linking AI data centres, renewable energy, cooling technologies, thermal management systems, and advanced component manufacturing. According to him, the global demand for advanced cooling systems and data centre equipment presents a massive opportunity for Andhra Pradesh to emerge as a strategic manufacturing destination.

David Gitlin described the Sri City project as a defining chapter in Carrier’s India journey. He said their $100-million investment reflects the company’s long-term commitment to innovation, sustainability, and local empowerment.

Michael Gierges thanked the Andhra Pradesh government for its business-friendly policies and appreciated Sri City’s support in facilitating the project.

Sundaresan Narayanan described Andhra Pradesh as “the future of India” and expressed gratitude to the state leadership for its support.

Ravindra Sannareddy said Carrier’s decision to establish its facility at Sri City reflects Andhra Pradesh’s industrial potential in India’s hyper-growth journey. “Under the visionary leadership of Chief Minister N. Chandrababu Naidu and the constant encouragement of minister Lokesh, this facility will drive sustainable innovation, empower local talent, and establish Sri City as a global hub of excellence,” he declared.

The upcoming Carrier facility is spread over 39 acres. It will manufacture high-end chillers and energy-efficient cooling systems, while significantly expanding local supply chains and export capabilities through five nearby ports. The company is scheduled to commence operations by the end of next year, with the plant generating nearly 3,000 direct and indirect jobs.

Senior state officials, including Tirupati district collector S. Venkateswar and superintendent of police Subbarayadu attended the ceremony.