Daikin Airconditioning India Pvt. Ltd., a subsidiary of Daikin Industries, Ltd., and Taiwan-based Rechi Precision Co., Ltd. have announced plans to establish a joint venture in India focused on manufacturing, designing, and selling compressors for the heating, ventilation, and air conditioning (HVAC) sector. Operations for the joint venture, named Daikin-Rechi India Pvt. Ltd., are projected to commence by the end of fiscal year 2025, pending regulatory approvals and the completion of a manufacturing facility.
The venture will initially focus on assembling rotary compressors produced by Rechi in India, targeting the residential HVAC market. Future plans may involve investment in a dedicated manufacturing facility to meet the rising demand for compressors in India. The joint venture will be headquartered at Daikin India’s Okhla office in Delhi.
The collaboration aligns with Daikin’s ongoing strategy to expand its supply chain capabilities in India. Daikin began local production in India at its Neemrana factory in 2009 and opened a new facility in Sri City in 2023. The Sri City plant produces residential and commercial air conditioners and integrates components manufacturing, including compressors, into its operations.
Rechi Precision, established in 1989, specializes in rotary compressors, motors, and other HVAC components. It will contribute its manufacturing expertise to the partnership. The ownership structure of the new company will see Daikin India holding a 51% stake, while Rechi will retain 49%.
The total initial capital investment in the joint venture is estimated at approximately $1.8 million. The company’s business activities will include development, manufacturing, sales, and after-sales service for air conditioning compressors in the Indian market.
The move reflects growing demand in India’s HVAC sector and both companies’ intention to secure a stable supply chain for critical components.