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Guangdong Meizhi Compressor Co (GMCC), a Midea Group company with a global market share of around 34 per cent, is setting up its first manufacturing facility for compressors outside China in India.
Krishan Sachdev, Managing Director, Carrier Media India and Midea Group, India Region, told BusinessLine the Midea Group and GMCC chose India because of their faith in the potential of the Indian market.
“We believe that this will greatly enhance not just our Make in India initiative, but it will help other companies to also make in India because they will have a local source of compressors,” he added. The facility will be located at the Technology Park at Supa Parner in Maharashtra. Eric Wang, Vice-President at Midea Group, pointed out that India poses the biggest potential for Midea Group owing to its increasing purchasing power, calling India a “strategic growth market for Midea Group.”
“The production capacity of this facility is 45 lakh total capacity once it is fully established and running. It will cater to a very significant part of the entire Indian air conditioning market,” Sachdev said.
He pointed out that there are only a limited number of compressor manufacturing facilities in the world as it is a “high investment” and “high technology” product. Wang also drew attention to how the compressor is a “concentrated industry”, which is also very technology and capital intensive.
Way forward
Midea Group also earmarked an estimated investment of ₹1,350 crore over the next five years at the Technology Park at Supa Parner in Maharashtra, for manufacturing home appliances, HVAC and compressors. Likely to commence operations in 2020, the Technology Park is expected to generate employment opportunities for over 2,000 people in direct and indirect employment.
The production capacity is 15 lakh in residential ACs and 2.5 lakh in light commercial ACs under the Carrier Midea India facility.
The Midea India facility will offer 5 lakh each for refrigerators, washing machines, water purifiers and water heaters. This will also include the 45 lakh production facility for compressors.
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