Japanese Air Conditioning (AC) company, Daikin has come forward to set up an AC manufacturing unit in Andhra Pradesh under the production-linked incentive (PLI) scheme for white goods.
This unit will be set up on an area of 75.5-acre land at Sri City in Visakhapatnam.
In this context, the officials had made an agreement on constructing the AC manufacturing unit in phases.
It is estimated that Daikin would have to invest more than Rs 1,000 crores in the first phase. With this unit, it is expected that more than 3,000 jobs will be created.
The unit will probably start its operations in 2023 and will have a total capacity of 1.5 million units per year which can serve both domestic and international markets.
Daikin official said that the company wants to start a manufacturing hub in India to serve markets in West Asia, Sri Lanka, South America, and Africa.
At present more than 75 percent of the AC components used in India are imported from China, Taiwan, and Vietnam. However, the company is now planning to manufacture the key AC components as the government is aggressively pushing for.
Daikin has so far invested around Rs 2,000 Crores in India for setting up two factories and a Research and Development centre near Neemrana, Rajasthan. Once the third plant in Vizag is completed, Daikin is planning to export the ACs manufactured here.