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Mitsubishi Electric to Invest Over Rs. 1,800 Cr. in Tamil Nadu AC & Compressor Manufacturing Unit

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Mitsubishi Electric India, a subsidiary of Japan’s Mitsubishi Electric Corporation, will be setting up a greenfield Air Conditioner and compressor manufacturing unit in Tamil Nadu with an investment of about Rs. 1,891 crore (USD 231.2 million).

Mitsubishi Electric’s Gummidipoondi Unit to be its First AC & Compressor Production Unit in India

Mitsubishi Electric’s upcoming room AC & compressor manufacturing unit at Peruvoyal village in Gummidipoondi taluk, Tamil Nadu will be the company’s first such unit in India.

On 9th May 2023, the company signed a Memorandum of Understanding with the Tamil Nadu state government for the development of this facility, and subsequently the ground-breaking ceremony for this unit was conducted by the state’s Chief Minister.

This facility is expected to sprawl over a 52-acre land parcel owned by Origins by Mahindra, a Joint Venture between Mahindra World City, Chennai, and Japan’s Sumitomo Corporation.

Room AC & Compressor Manufacturing to Begin by End of 2025

The aforementioned unit is expected to commence room AC production in October 2025, and have an initial annual production capacity of 3,00,000 units.

Mitsubishi Electric expects to start rolling out compressors from this plant by December 2025 with an initial annual capacity of 6,50,000 units.

Project to be Funded by FDI, to Generate over 2,000 Employment Opportunities

The entire funding for setting up Mitsubishi Electric’s facility will be secured through the Foreign Direct Investment (FDI) route.

Further, it was stated at the ceremony by Tamil Nadu’s Chief Minister that this new plant will open over 2,000 employment opportunities, 60% of which are expected to be for women.

Mitsubishi’s Upcoming Tamil Nadu Factory to Bring it Closer to its 2025 Goals

The company’s aforementioned room AC and compressor manufacturing facility is a step towards realising its ‘Advanced and Innovative 2025 Strategy’, which was conceived in 2021.

As per this strategy mentioned in the company’s investor presentation dated 11th November 2021, Mitsubishi Electric has planned a global sales target of 1.26 trillion Japanese Yen (JPY) from its Air Conditioning and refrigeration segment in FY-25.

The company expects to execute these sales at an operating profit margin of 12%.

With its upcoming maiden AC and compressor factory in Tamil Nadu, Mitsubishi Electric is therefore in process of expanding its global manufacturing footprint and hence its worldwide presence.

About Mitsubishi Electric India: Mitsubishi Electric India was incorporated in the year 2010. It offers a wide range of products for the Indian market including Air Conditioners, Factory Automation and Industrial Systems, Semiconductor & Devices, Transportation Systems, and Visual & Imaging. It has two manufacturing facilities in Pune and one in Bengaluru with multiple offices in major cities of India.