Mitsubishi Electric India inaugurated a new air-conditioner and compressor manufacturing facility in Chennai, Tamil Nadu, marking an expansion of its local manufacturing footprint and a step toward higher localisation of heating, ventilation and air-conditioning (HVAC) equipment in the country.

The facility, located at Gummidipoondi on the outskirts of Chennai, has been developed with an investment of INR 21 billion. It has an annual production capacity of 300,000 indoor and outdoor room air-conditioners and 650,000 compressor units, aimed at supporting domestic demand while reducing reliance on imported components.

The company said the plant has been designed using Japanese manufacturing technologies and data-driven processes, with a focus on quality control, energy efficiency and sustainable operations. The facility is expected to support higher localisation of room air-conditioners and compressors, components that have traditionally depended on imports, while strengthening supply chain resilience.

“India is witnessing rapid growth in demand for energy-efficient and high-quality air-conditioning solutions,” said Atsushi Takase, Managing Director, Mitsubishi Electric India. “This facility will support this demand through local manufacturing, enable faster response to customer needs, strengthen quality control and ensure sustainable operations. It will position India as a core hub within Mitsubishi Electric’s global air-conditioning business.”

Spread over 210,000 square metres, the plant is Mitsubishi Electric India’s second manufacturing facility in the country within two years. The company had inaugurated a factory automation systems manufacturing plant in Pune in 2023. The Chennai facility represents a milestone in Mitsubishi Electric’s 15-year manufacturing presence in India. The project is expected to generate more than 2,100 direct and indirect employment opportunities and contribute to the development of the regional supplier ecosystem.

The facility was inaugurated through a virtual plaque unveiling by the Chief Minister of Tamil Nadu, M K Stalin, in the presence of the Consul General of Japan, Muneo Takahashi, and senior leadership of Mitsubishi Electric India.

“This inauguration reflects Tamil Nadu’s growing manufacturing potential and our commitment to enabling businesses from India and across the world to strengthen manufacturing, expand operations and grow sustainably in the state,” Stalin said.

The investment aligns with the Government of India’s Make in India initiative and Tamil Nadu’s industrial development framework. By manufacturing air-conditioners and compressors domestically, Mitsubishi Electric India aims to reduce import dependence, encourage local sourcing of components and develop technical capabilities among suppliers in line with global manufacturing standards.

Mitsubishi Electric India is a wholly owned subsidiary of Mitsubishi Electric Corporation and operates across multiple segments, including air-conditioning systems, factory automation and power systems, with manufacturing and sales operations across India.