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Mitsubishi Electric India (MEI), a part of the $37 billion Japanese major Mitsubishi Electric, will invest ₹1,891 crore in a new air-conditioner and compressor factory project near Chennai.
This is the company’s first such plant in India to be set up to meet the rising demand for air conditioners in the country.
The investment is by way of 100 per cent foreign direct investment which would generate employment of more than 2,000 people, said a press release.
The company on Tuesday signed a memorandum of understanding (MoU) with the State government for the project.
Tamil Nadu Industry Secretary S Krishnan and Kazuhiko Tamura, MD, Mitsubishi Electric India, signed the MoU in the presence of Chief Minister MK Stalin, who also unveiled the virtual foundation stone for the project.
The facility will be set up on a 52 acre land at Origins by Mahindra in Peruvoyal Village, Gummidipoondi Taluk, Thiruvallur District. The production is targeted to start in October 2025.
The initial annual capacity will total up to 3,00,000 room air conditioners and by the beginning of December 2025, the capacity will more than double to 6,50,000 compressors, the press release said.
Advance & Innovation 2025 Strategy
Introduced in November 2021, Mitsubishi Electric’s Advance & Innovation 2025 Strategy is targeting global sales of air conditioning and refrigeration systems worth $10.5 billion by the fiscal year ending March 2026.
A major part of the MEI’s production is set to be exported.
The State government is taking all possible measures to improve the export sector, said Chief Minister Stalin in his speech.
The project will open up opportunities for many ancillary industries to enter Tamil Nadu, thereby, reducing imports.
Mitsubishi Electric Corporation Group President Yasumichi Tazunoki at the MoU signing and foundation stone laying ceremony for air conditioner and compressor factory of Mitsubishi Electric, in Chennai, Tuesday, May 9, 2023. (PTI Photo)
The project proposes to employ more than 60 per cent of women in the factory, and has assured to provide necessary training, learning, and development initiatives to its employees.
This would definitely strengthen the efforts taken by this government towards the welfare of women in the State, the Chief Minister said.
Since the launch of the Tamil Nadu Research & Development Policy in July 2022, more than 50 companies have set up a new technical centre including R&D Centres in the State, and some have expanded their existing centers.
This has created employment opportunities for nearly 1,22,000 persons, he added.
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