Mitsubishi Electric India Inaugurates Major Rs 2,100 Crore Manufacturing Hub in Chennai
In a significant move to capitalize on India's rapidly expanding cooling market, Mitsubishi Electric India has officially commissioned a state-of-the-art air conditioner and compressor manufacturing facility in Chennai. The plant, representing an investment of Rs 2,100 crore, was inaugurated virtually by Tamil Nadu Chief Minister M K Stalin on Friday, marking a major expansion for the Japanese conglomerate in the country.
Facility Scale and Production Capacity
The sprawling new facility spans an impressive 210,000 square meters and is designed to have an annual production capacity of 300,000 indoor and outdoor room air conditioners, along with 650,000 compressors. This substantial operation is expected to create over 2,100 direct and indirect employment opportunities, providing a significant boost to the local economy.
Strategic Growth Targets and Business Outlook
Atsushi Takase, Managing Director of Mitsubishi Electric India, outlined ambitious growth plans for the company's air-conditioning division. "We expect our air-conditioning business in India to grow at a double-digit average annual growth rate (CAGR) from FY2025 to FY2030," Takase stated. "The commissioning of the new plant strengthens this outlook by enhancing localization, improving supply stability, and enabling faster response to market needs."
While specific figures were not disclosed, Takase confirmed that air conditioning constitutes the largest business segment among Mitsubishi Electric's three core operations in India, which also include factory automation and semiconductors and devices. The company reported revenue of approximately Rs 4,200 crore in FY25 and is on track to more than double its air-conditioning sales in FY26 compared to FY21 levels.
Focus on Localization and Energy Efficiency
The Chennai plant is strategically positioned to support increased localization efforts and facilitate the production of advanced inverter air conditioners and compressors. This initiative aligns with upcoming regulatory changes, as stricter Bureau of Energy Efficiency (BEE) norms set to take effect in January 2026 are anticipated to drive higher demand for inverter-based systems due to their superior efficiency and performance characteristics.
Market Positioning and Expansion Plans
Mitsubishi Electric is carving out a niche as a premium brand within India's highly competitive room air conditioner market. The company's operations are bolstered by an extensive pan-India network comprising channel partners, distributors, and specialized Sales & Service Dealers (SSDs).
Beyond residential cooling solutions, Mitsubishi Electric is actively expanding its footprint in the commercial cooling sector. This includes:
- Packaged air conditioners
- Variable refrigerant flow (VRF) systems
This expansion is fueled by growing demand from various sectors such as:
- Office spaces
- Retail establishments
- Healthcare facilities
- Data centers
- Infrastructure projects
Supportive Market Environment
India's air-conditioning market continues to exhibit robust growth, sustained by multiple favorable factors:
- Post-GST rate reductions enhancing affordability
- Rapid urbanization trends
- Increasing disposable incomes
- Improving living standards nationwide
- Greater consumer awareness regarding energy-efficient cooling solutions
These elements collectively contribute to the sustained double-digit expansion that makes India such an attractive market for global cooling technology leaders like Mitsubishi Electric.
