Daikin Industries, the world’s largest air-conditioning manufacturer, is making a bold move in the red-hot Indian AC market by setting up a massive 33-acre manufacturing facility in Sri City, Andhra Pradesh. This investment is a significant step in expanding Daikin's production capacity in India, marking its third manufacturing plant in the country. But why is Daikin, a global powerhouse, betting so heavily on India? Let’s explore.
The Indian AC Market: A Rising Star India's air conditioning market is on the verge of explosive growth. With rising temperatures and heat waves becoming more frequent, air conditioners are rapidly shifting from being a luxury to a necessity. The Room AC (RAC) market in India is expected to grow at a compound annual growth rate (CAGR) of 12%, reaching a market size of INR 50,000 crore by 2028-2029.
This growth potential is attracting giants like Daikin, which has already committed to producing 5 million AC units by 2030, with 4 million dedicated to the domestic market alone. Why India? Tapping into a Massive Opportunity Daikin’s Strategic Expansion The new Sri City plant is a key part of Daikin’s strategic management plan, known as "FUSION25," which focuses on establishing a major base in India. This facility not only enhances Daikin's production capacity but also supports its commitment to sustainable practices and regional growth.
The plant will cater to both domestic and export markets, supplying high-efficiency air conditioning units to neighboring Asian countries, the Middle East, and Africa. Daikin's latest investment is more than just a factory; it’s a statement of faith in India's growth story. With government support, a growing market, and rising consumer demand, the future of the AC sector in India is looking cooler—and more lucrative—than ever before.
Edited by Rahul Bansal.
