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Fujitsu General to invest $200 m in AC manufacturing facility in India

KV Kurmanth Hyderabad | Updated on February 16, 2018

 

Fujitsu General, the Japanese air-conditioner maker, is planning to set up a $200-million manufacturing facility in India as it increases the focus on the market here. The facility is likely to be located in Andhra Pradesh or Telangana.

This $200 million is part of the $1-billion investments that the firm is planning to invest globally on expansion.

The company, however, might take two years to firm up the plans for setting up the manufacturing facility in India. It will have a dedicated research and development team to work on models suited for the local market.

The firm, which presently operates only in the premium category with an average price tag of ₹50,000 is looking at introducing models that can attract more buyers in the other segments of the market.

For the upcoming summer season, the firm has unveiled a line-up of 26 air-conditioners, which include one that can deliver even at the temperatures of 52°C and work in power supply of 155 to 265 volts.

M Ejazuddin, CEO and Director, EGPL (ETA General Pvt Ltd), told BusinessLine that the proposed manufacturing facility in the South could kick start operations with an initial capacity of 10 lakh units a year.

“Our turnover for the last fiscal in India was ₹1,500 crore. We are witnessing an annual growth rate of 20-25 per cent. Our products range from ₹25,000 to ₹1.5lakh,” M Ejazuddin said.

The company has a share of 4 per cent in the Indian market of 60 lakh units a year. “India is a key market for us. It contributes about 10 per cent of our annual global volumes of 35 lakh units,” said Etsuro Saito, President, Fujitsu General.

The firm has showcased the new range of 26 ACs here on Thursday. The present range of 12 models will make way for the new models launched today.

“We would like to increase the market share to over 5 per cent in the next two years. The firm has a network of 2,500 dealers and 350 service franchises,” Ejazuddin said.

Published on February 15, 2018

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