Daikin Airconditioning India Pvt. Ltd., a wholly owned subsidiary of Daikin Industries, Ltd., and Rechi Precision Co., Ltd., a global leader in the compressor business headquartered in Taiwan, have recently agreed to form a partnership and establish a joint venture in India to manufacture, design, and sell compressors to Indian HVAC industry. Pending the establishment of a manufacturing facility and receipt of all necessary regulatory approvals, operations for the joint venture are expected to begin by the end of FY2025.
Rechi is one of the world’s leading compressor manufacturers and possesses excellent manufacturing know-how and technology in rotary compressors, motors, and other components for the HVAC industry. Similarly, it has earned a strong market reputation for manufacturing low-cost, high-quality compressors.
The partnership plans to leverage the business foundation of Daikin in the Indian market and the manufacturing capabilities of Rechi for low-cost, high-quality compressors with the aim of ensuring a stable supply of compressors to the Indian HVAC industry where demand continues to grow. At first, the new joint venture will begin by assembling Rechi’s rotary compressors in India for sale to Indian residential HVAC customers. In the future, the two companies will likely consider investment in the establishing a compressor factory with a production capacity to meet the fast-growing compressor demand in the Indian market.
For Daikin, this represents its latest investment for strengthening product supply capabilities in the Indian market. Since beginning local production at its Neemrana Factory in 2009, it has continued to expand production capabilities.
