Daikin forms Indian compressor JV
17th December 2024
INDIA: Daikin’s Indian subsidiary is to form 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 begin operations in Q4 of 2025 from a site in Sri City, Andhra Pradesh, India. Annual production and sales is targeted to reach sales of two million units in India by 2027.
The JV will be 51% owned by Daikin Airconditioning India and 49% owned by Rechi. The alliance aims to utilise 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 multiple countries including China, Poland, USA, Thailand, Brazil, Czech Republic and Egypt.
In the initial phase, the new joint venture will assemble Rechi’s rotary compressors and sell them for use in residential air conditioners in India. In the future, the two companies are also considering investing in establishing a new factory with the production capacity to meet the rapidly growing demand for compressors in the Indian market.
Daikin continues to invest to strengthen its product supply capabilities in the Indian market. Since starting local production at the Neemrana factory in 2009, Daikin has expanded production of compressors as well as residential and commercial air conditioners.
