Daikin and Rechi Precision to Revolutionize India's Compressor Market

Daikin Industries has partnered with Taiwan's Rechi Precision to manufacture compressors in India through a joint venture. The project, based in Andhra Pradesh, aims to boost domestic production and enhance affordability and availability of air conditioners, with substantial investment expected over the next few years.

Japanese air conditioning giant, Daikin Industries, is joining forces with Taiwan's Rechi Precision to set up a manufacturing facility for compressors in Sri City, Andhra Pradesh, India. This joint venture will focus on the production of rotary compressors for both inverter and non-inverter air conditioners for domestic and overseas markets.

The endeavor will see Daikin as the majority stakeholder, leveraging its established presence in the Indian HVAC market, while Rechi brings its expertise in rotary compressor technology. Industry insiders predict an investment of approximately Rs 1,000 crore over a 5-6 year period, with operations expected to commence in the fourth quarter of fiscal year 2024-25.

This collaboration aims to cater to the growing demand for cost-effective air-conditioning solutions in India by providing an enhanced portfolio of advanced compressor technologies. Additionally, the partnership aligns with Daikin's mid-term strategy to solidify India as a major hub for compressor production, supporting both domestic consumption and international export opportunities.

(With inputs from agencies.)