Japan’s Mitsubishi Electric to invest $235mn in AC factory in India; to start production by Oct 2025

Mitsubishi Electric Corporation, the 102-year-old Japanese firm, will be investing $236 million (Rs 1,891 crore) to set up a facility in India to manufacture room air-conditioners and compressors. The foundation stone for the factory was laid virtually by Tamil Nadu Chief Minister MK Stalin in the presence of top officials from the Japanese firm. Situated in the Thiruvallur district near Chennai, the factory is expected to commence production by October 2025. 

The Japanese firm signed a Memorandum of Understanding with the Tamil Nadu Government, regarding their plan to invest $236 million as a 100 per cent foreign direct investment.

Spread across 52 acres, their new factory, which is also their first to manufacture room ACs and compressors in India, is expected to offer employment to more than 2,000 people. The firm hopes to roll out 3,00,000 ACs and 6,50,000 compressors per year, and these products are meant to cater to local demand and exports.

Speaking at the event, Tamil Nadu Chief Minister MK Stalin said that Tamil Nadu is home to three of the 12 Japan Industrial Townships (JIT) in India, as part of the Japan-India Investment Promotion Partnership.

He also highlighted that Tamil Nadu was home to the highest number of Japanese expatriates in India. He also made a mention of his impending visit to Singapore and Japan later this month, to attract investors to the state.

(With inputs from agencies)