Highly India’s air-conditioning compressor plant goes on stream

India's largest air-conditioning compressor plant, set up by Chinese major Highly at a cost of $ 72 million, went on stream near here on Tuesday.

The green-field expansion is part of global air-conditioning compressor manufacturer's strategy to expand presence in the BRIC countries with an investment of $1.1 billion.

Shanghai Hitachi, a JV between Highly Group and Hitachi AP, global leading AC compressor manufacturer, commissioned this plant situated in Ahmedabad district. It has a capacity of making two million sets per annum. The 33,000 square meters facility was inaugurated by Gujarat Energy Minister Saurabh Patel, according to a press release.

While other three plants of the company in China, each having a capacity to produce six million sets per annum, Highly’s total capacity will now go up to 20 million sets. The Ahmedabad unit has been set up by the company's Indian arm, Highly Electrical Appliances India Pvt. Ltd (Highly India).

Shen Hong, Managing Director of Highly India said, Shanghai Hitachi entered Indian market in 2003. Now it has nearly 40 per cent share of the country's market for AC compressors. India has become the most important overseas market for Highly, he added.

Currently, India's AC market demand is 3.5 million sets with an expected 20 per cent average annual growth rate. With inadequate local supply, manufacturing of ACs largely relies on imported compressors. Highly, a listed room air conditioner compressor enterprise in China, is the first manufacturer of Chinese air conditioner compressor industry to invest in India.

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