Japanese air conditioning behemoth, Daikin Industries Ltd., the world’s number one manufacturer of heating, ventilation, and air conditioning (HVAC) systems, is aggressively ramping up its operations to establish India as its single largest global manufacturing hub by 2030.
The strategic move is centered around a massive expansion drive, positioning India not just as a crucial domestic market but as a powerhouse for global exports, with the aim of shipping “Made in India” ACs to over 100 countries.
- Largest Manufacturing Base: Daikin’s commitment is underlined by its new 75-acre manufacturing facility in Sri City, Andhra Pradesh, which is its third major plant in India and is already recognized as Daikin’s largest factory in Southeast Asia. This facility, which began commercial operations in late 2023, is a cornerstone of the company’s global strategy.
- Doubling Capacity: Daikin plans to double its annual residential AC production capacity in India from 1.5 million units to 3.0 million units by 2030. The overall production goal is to reach 5 million AC units annually.
- Massive Investment: The company has committed a significant investment, with total investments in India’s world-class infrastructure, including manufacturing and R&D, reaching over crore. Recent capital infusions in 2024 further support the expansion of the Sri City plant and component manufacturing.
- Global Export Hub: India is set to become a vital node in Daikin’s global supply chain. Products manufactured in India are already being exported to markets in Africa, the Middle East, South America, Sri Lanka, and Bangladesh. By 2030, the company expects to nearly triple the volume of exported products.
- High Localization: Aligned with the Indian government’s Production Linked Incentive (PLI) scheme, Daikin is a primary investor in the AC category and is focusing heavily on indigenization. The company is boosting its local manufacturing of critical components, including compressors, to increase the localization level to and eventually to nearly .
- R&D Innovation: Reinforcing India’s role beyond just a production center, Daikin inaugurated its third R&D center in Neemrana, Rajasthan, in early 2025, with an investment of crore. The center will employ over 500 engineers to develop HVACR products for both Indian and global markets.
K.J. Jawa, Chairman and Managing Director of Daikin India, has stated that the company’s biggest ambition is to make India Daikin’s largest manufacturing hub globally by 2030, reinforcing the nation’s growing stature as a reliable, cost-effective, and high-quality manufacturing destination. This expansion is a strong vote of confidence in India’s economic potential and its skilled workforce.
