Hon’ble Chief Minister of Tamil Nadu, Thiru M.K. Stalin lays foundation ceremony for Air-conditioner and Compressor factory project by Mitsubishi Electric India (MEI)

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~ Mitsubishi Electric India (MEI) hereby enters this MoU with the Government of Tamil Nadu, to facilitate the timely establishment and operation of manufacturing facility for Room Air Conditioners and Compressors at Thiruvallur District, Tamil Nadu ~

· Leading the Way with Technology and New Alliances.

· A New Step towards Development.

· Expanding production in key growth areas to grow A/C and refrigeration businesses.

Chennai, 9th May 2023

Electronics equipment manufacturer Mitsubishi Electric India has signed a memorandum of understanding (MoU) on Tuesday,9th May 2023 with the Government of Tamil Nadu followed by a foundation laying ceremony. Hon’ble Chief Minister of Tamil Nadu, Thiru M.K. Stalin lays foundation laying ceremony for Air-conditioner and Compressor factory project by Mitsubishi Electric India (MEI) in the presence of Mr.Thangam Thennarasu (Hon’ble Minister of Industries,Government of Tamil Nadu), Mr.S Krishnan, I.A.S (Additional Chief Secretary to Government of Tamil Nadu,Industries Department), Mr V Vishnu, I.A.S, (MD & CEO, Guidance, Tamilnadu) Mr.Kazuhiko Tamura (MD, Mitsubishi Electric India), Mr. Yasumichi Tazunoki (Group President, Mitsubishi Electric Corporation) and Mr. Masayuki Taga (Consul General, Consulate General of Japan in Chennai) held in Chennai.

Mitsubishi Electric India (MEI) hereby enters this MoU with the Government of Tamil Nadu, to facilitate the timely establishment and operation of manufacturing facility for Room Air Conditioners and Compressors in Thiruvallur District, Tamil Nadu.

To assist the rising demand in the Indian market, MEI shall be investing Rs 1,891 crore or 26.7 billion yen (about 222.5 million U.S. dollars), by way of 100% foreign direct investment which would generate employment of more than 2000 people.

The local production is targeted to start in October 2025. The initial annual capacity will total up to 300,000 of room air conditioners and by the beginning of December 2025, 650,000 compressors.

The demand to replace older air conditioning and refrigeration systems with newer models is expected to continue growing as consumers and companies shift to energy-saving and low-GWP refrigerants. Mitsubishi Electric’s Advance & Innovation 2025 Strategy, introduced in November 2021, is targeting sales of air conditioning and refrigeration systems worth 1.26 trillion yen (about 10.5 billion U.S. dollars) with an operating profit of 12% by the fiscal year ending March 2026 in worldwide. In line with this strategy, the company is accelerating its launch of high-performance, energy-saving and environmentally friendly products to offer natural refrigerants that meet local needs, expand production for stable product supply and shorter lead times, and introduce lifecycle solutions encompassing sales, service, facility management and product recycling.

MEI’s air conditioning and refrigeration systems business in India, after its establishment in 2010, started importing and selling products. Thereafter, MEI grew the business by expanding its sales channels and establishing a market position as a premium brand supplying a wide variety of high-quality, high-performance products.

This State of Art manufacturing facility will be constructed on a 52 Acre land at Origins by Mahindra in Peruvoyal Village, Gummidipoondi Taluk, Thiruvallur District, Tamil Nadu and is expected to strongly support MEI’s stable product supply as the Indian market continues to grow due to its increasing population and expanding economy. It will also strengthen development capabilities to meet local demands and provide product lifecycle solutions incorporating air conditioning and refrigeration equipment.

The factory will implement various initiatives for carbon neutrality, including the minimization of carbon dioxide emissions through enhanced thermal insulation, the use of highly efficient air conditioning and heated-water systems, and LED lighting. Furthermore, it will meet sustainable development goals (SDGs) through measures such as reusing wastewater through underground filtration treatment and site greening.

Tamil Nadu has well developed infrastructure with an excellent connectivity of airports, ports, roads within India and overseas countries, for Industrial Parks, Industrial Corridor for plug and play facilities for new manufactures, well-organized Infrastructure Facilities for Social, Health and Educational. It is also recognized as an “Achiever” among the Coastal states by DPIIT in Logistics Ease (LEADS 2022).

With Strategic location advantages and multiple Ports, it can be considered as one of the best manufacturing and investment destinations in India, which led MEI to make this strategic Investment in this state. We extend our wholehearted thanks to the Government of Tamil Nadu for their proactive support and steadfast assistance in successfully grounding the MEI’s project in the state.