INDIA: Daikin’s Indian subsidiary plans to set up a joint venture with Taiwanese compressor company Rechi Precision to manufacture and sell rotary inverter compressors for the Indian air conditioning market.
Daikin-Rechi India is expected to commence operations in the fourth quarter of 2025 at a site in Sri City, Andhra Pradesh, India. Annual production and sales volume is planned to reach two million units in India by 2027.
The joint venture will be 51% owned by Daikin Airconditioning India and 49% by Rechi. The aim of the alliance is to leverage Daikin’s business base in the Indian market and Rechi’s manufacturing capabilities for low-cost, high-quality compressors.
Rechi Precision was founded in 1989 and is headquartered in Taoyuan, Taiwan. It manufactures rotary compressors, motors and other components for the air conditioning industry with sales in many countries including China, Poland, the United States, Thailand, Brazil, the Czech Republic and Egypt.
Initially, the new joint venture will assemble Rechi rotary compressors and sell them for use in residential air conditioners in India. In the future, the two companies are also considering investing in a new plant with manufacturing capacity to meet the rapidly growing demand for compressors in the Indian market.
Daikin continues to invest in strengthening its supply capabilities in the Indian market. Since the launch of local production at the Neemrana plant in 2009, Daikin has expanded its production of compressors as well as residential and commercial air conditioners.
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