Daikin mulls third AC plant in India.

Bullish about the Indian market as well as prospects of making the country an export hub, Japanese air conditioning major Daikin is mulling a third plant even as its second facility in Rajasthan is taking shape to be ready by September, a top company official said.

The company, however, expects the capacity of room air conditioners, which will more than double to 1.2 million units from the existing 500,000 units once the second unit starts, to prove insufficient by 2019, said Kanwal Jeet Jawa, managing director, Daikin Airconditoning India Pvt. Ltd.

The second plant on 40 acres, with an investment of ₹600 crore, will enhance the capacity for Variable Refrigerant Volume units and chillers too.

The existing plant in Neemrana, which was set up with an investment of ₹1,100 crore, is operating at a capacity of 95 per cent. The capacity of the third plant would depend on market growth. If the pace of growth is more than 15-18 per cent, Daikin would opt to add a plant with one million units capacity, Mr. Jawa said.

Noting that Daikin’s project team is likely to a decision after March 2018, Mr. Jawa, who heads the wholly owned subsidiary, said Maharashtra, Andhra Pradesh and Telangana were being considered for the facility. While preference would be for a location near the coast so as to facilitate exports, the company would examine other options, including taking over sick units, with land parcels, in and around Hyderabad.

THE HINDU