Daikin India to set up JV in India with Taiwan’s Rechi Precision to manufacture compressors

NEW delhi

Daikin Industries, Osaka, a Japan-based global manufacturer of air conditioning and refrigeration systems, will set up a joint venture with Taiwan's Rechi Precision to manufacture compressors in India at Sri City, Andhra Pradesh.

Daikin through its local subsidiary, Daikin Airconditioning India and Rechi Precision, announced setting up a JV to "manufacture, design and sale" rotary compressors for inverter & non-inverter ACs in India and some overseas markets, according to a joint statement.

Though the company has not announced the investment, it said Daikin will be the majority partner in the JV.

According to industry insiders, around Rs 1,000 crore will be invested in the JV in the next 5-6 years.

"The joint venture is expected to become operational by the 4th quarter of FY24-25. The manufacturing facility shall be established at Sri City, Andhra Pradesh," it said.

Established in 1989 in Taiwan, Rechi Precision is a global leader in the manufacturing of rotary compressors, motors and other components in the field of HVAC Business (heating, ventilation, air conditioning, and refrigeration).

Daiking is among the leading players in the Indian HVAC market and had a revenue of around Rs 10,500 crore in the financial year ended on March 31, 2024.