Mitsubishi Electric to set up its first AC plant in Tamil Nadu – Times of India

CHENNAI: Japanese electronics major Mitsubishi Electric is setting up its first air conditioner plant in India in Tamil Nadu. The company is investing 26.7 billion yen (around $222.5 million or ₹1,800 crore), in its Indian subsidiary Mitsubishi Electric to establish a factory for the production of room air conditioners and compressors.
Spread across 88,000 sq m, the factory is planned to be built on a 2.1 lakh sq m site.
A spokesman for Mitsubishi told TOI that they are “in final stages of discussion with the TN government,” and also close to completing processes relating to land acquisition and construction.
Mitsubishi Electric said it targets to start production in India in October 2025, and initial annual capacity will total 3,00,000 room air conditioner outdoor units and beginning in December 2025, 6,50,000 compressors. The plant will meet demand for the Indian market, and not for export purposes. “While the number of new jobs is undecided at this moment, Mitsubishi Electric is eager to contribute to development of the local economy; (and) most of them are to be locally employed,” the Mitsubishi spokesperson added.
This is part of the Japanese giant’s plans to invest 180 billion yen (about $1.5 billion) in facilities worldwide, including Europe and the United States, over a five-year period ending in March 2026. “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,” the company said. Tamil Nadu has emerged as a top destination in electronics manufacturing thanks to the presence of a robust ecosystem comprising Foxconn, Pegatron, Flex, Salcomp and others.
Mitsubishi’s entry into Tamil Nadu follows consumer electronics major Samsung’s plans in March 2022 to set up a new compressor manufacturing plant in Sriperumbudur near Chennai with an investment of `1,588 crore. Mitsubishi said its new TN factory will meet sustainable development goals through measures such as reusing wastewater through underground filtration treatment . The factory will also implement initiatives for carbon neutrality, including the minimisation of CO2 emissions, use of air conditioning and heated-water systems.