Mitsubishi Electric’s Rs 2,100 Crore Chennai Plant Strengthens India

To cement its commitment to the Indian market, Mitsubishi Electric India has launched a Rs 2,100-crore manufacturing plant close to Chennai to manufacture room air conditioners and compressors.

It is the second manufacturing plant that the company has had in India in two years, the first one being the Factory Automation Systems in Pune in 2023. The plant will be located in Chennai and will be able to produce 300,000 AC units and 650,000 compressors each year.

Atsushi Takase, Managing Director, Mitsubishi Electric India, said, “We were importing ACs, and will now manufacture in Chennai.” The move towards local manufacturing aims to enhance supply stability, shorten lead times, and support Mitsubishi Electric’s double-digit growth ambitions in India.

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It is projected that local production will generate more than 2,100 direct and indirect jobs and make it better responsive to seasonal demand and convert customer preferences. Earlier, Mitsubishi Electric air conditioners in India were mainly produced in Thailand and Japan. The Chennai plant will now enable the organization to be in closer harmony with local regulatory standards, such as energy-efficiency standards.

Mitsubishi Electric has been present in India for more than 20 years, and sales of air-conditioners started in 1999. In 2010, an integrated sales company was founded. Although the company does not reveal revenue information on individual product lines, the total revenue in India is about 4,200 crore.

The main target of the Chennai plant will be the domestic market, which is currently at 11.9 million AC units in 2024 and exceeds that of Japan, with 10 million AC units. Mitsubishi Electric India believes that its air-conditioning business has a double-digit CAGR in FY2025-2030, and India is a strategic location in terms of growth with Europe and the Americas