Daikin India ties up with Rechi to set up AC compressor plant in Andhra

Under this JV agreement, Daikin India will hold a majority share

Daikin India, a 100 per cent subsidiary of Japan-based Daikin Industries, and Rechi Precision, a major in the compressor business, have announced a joint venture (JV) to manufacture, design and sell rotary (inverter and non-inverter) compressors in India and some overseas markets. 

 

“Rechi Precision’s innovative rotary compressor technology complements Daikin India’s portfolio and delivers substantial benefits, including localised products, affordability and enhanced reliability,” the release said. 

 

This is the first partnership for Daikin India in the country.   Under the agreement, Daikin India will hold a majority share. In the initial phase of the partnership, efforts will concentrate on providing test samples of Rechi’s rotary compressors to India’s AC manufacturers to facilitate swift adoption and evaluation, the release said. 

 

The joint venture is expected to become operational by the fourth quarter of the current financial year. “The JV includes plans to build a 33-acre manufacturing plant in Sri City, Andhra Pradesh,” it said. 

 

“This JV formation is in line with our mid-term business strategy to establish a major hub in India. By partnering Rechi Precision, a Taiwanese company known for its cost-effective material procurement and manufacturing expertise and extensive global track record in compressor sales, we aim to build a business foundation for compressor production and sales in India,” Shoji Uehara, executive officer, global operations division, Daikin Industries, Japan said in its release. 

 

He added: “This new company will produce and sell compressors domestically to alleviate supply shortages and cater to both Daikin’s internal and external demand. As we expand our business, we will support the "Make in India" policy as a leading air conditioning company and contribute to the sustainable growth of the Indian market through stable supply.” 

 

“In this joint venture, Rechi will bring technical knowhow, research and development, continuous product development, production engineering capability, and play a key role in setting up sales and service capability in India for rotary compressor business. We are very excited to partner with Daikin and bring the latest technology.” said Chen, Shen Tien, chairman of Sampo Corporation, Holding Company of Rechi Precision.

 

KJ Jawa, chairman and managing director of Daikin India, also said that the partnership marks a significant milestone in broadening Daikin India’s offerings, enabling the company to deliver a wider array of advanced rotary compressor technologies tailored for residential heating, ventilation and air conditioning solutions. 

 

He added: “As the market witnesses growing demand for cost-effective air conditioners, our extensive sales network, customer-centric approach, strong brand reputation, and reliable after-sales support— combined with Rechi Precision’s innovative rotary compressor expertise—will empower us to provide economical and efficient air-conditioning options.”