Market news, 26 November 2024
Daikin and Rechi Announce Joint Venture to Supply Compressors to Indian HVAC Market
Date:
18 December 2024
Daikin Airconditioning India Pvt. Ltd., a subsidiary of Daikin Industries, Ltd., has partnered with Taiwan-based Rechi Precision Co., Ltd., to establish a joint venture in India focused on manufacturing, designing, and selling compressors for the HVAC industry. The partnership plans to begin operations by the end of FY2025, following the setup of a manufacturing facility and necessary regulatory approvals.
Rechi, a global leader known for its expertise in rotary compressors and components for HVAC systems, is recognized for producing cost-effective, high-quality compressors. This joint venture aims to combine Daikin’s established presence in the Indian market with Rechi’s manufacturing capabilities to ensure a reliable supply of compressors as demand in India grows.
Initially, the joint venture will assemble Rechi’s rotary compressors in India, catering to the residential HVAC sector. Future plans may include establishing a compressor factory to meet the rising market demand.
For Daikin, this joint venture marks another strategic investment to enhance its product supply in India. Since opening its Neemrana Factory in 2009 and expanding with the Sri City Factory in 2023, Daikin has been progressing towards integrating compressor production into its operations to ensure a steady supply of air conditioners in India.
The partnership with Rechi is part of Daikin's strategy to secure the medium- to long-term supply of compressors, which are critical components in HVAC systems. Through this collaboration, Daikin aims not only to support the growth of the Indian HVAC market but also to strengthen its own market position and drive further growth for the Daikin Group in India.
Rechi, a global leader known for its expertise in rotary compressors and components for HVAC systems, is recognized for producing cost-effective, high-quality compressors. This joint venture aims to combine Daikin’s established presence in the Indian market with Rechi’s manufacturing capabilities to ensure a reliable supply of compressors as demand in India grows.
Initially, the joint venture will assemble Rechi’s rotary compressors in India, catering to the residential HVAC sector. Future plans may include establishing a compressor factory to meet the rising market demand.
For Daikin, this joint venture marks another strategic investment to enhance its product supply in India. Since opening its Neemrana Factory in 2009 and expanding with the Sri City Factory in 2023, Daikin has been progressing towards integrating compressor production into its operations to ensure a steady supply of air conditioners in India.
The partnership with Rechi is part of Daikin's strategy to secure the medium- to long-term supply of compressors, which are critical components in HVAC systems. Through this collaboration, Daikin aims not only to support the growth of the Indian HVAC market but also to strengthen its own market position and drive further growth for the Daikin Group in India.
