Daikin–Rechi India on 11 February, 2026 began construction of its rotary compressor manufacturing facility in Sri City, Andhra Pradesh, marking a significant boost to India’s heating, ventilation, and air conditioning (HVAC) sector.

The joint venture, formed between Daikin Air-conditioning India, a wholly owned subsidiary of Japan’s Daikin Precision, will invest Rs 547 crore in the first phase of the project. The facility, located on 33.10 acres with a built-up area of 1.33 lakh sq. mtrs., will establish production lines capable of manufacturing two million rotary compressors annually, with scalability up to nine million compressors. The compressors will initially cater to domestic air-conditioning brands, with plans to expand into export markets.

The ‘Bhoomi Pooja’ ceremony was led by Kanwaljeet Jawa, Chairman and Managing Director of Daikin India. He called the project a key milestone in Daikin’s localization efforts under the Prime Minister’s ‘Make in India’ initiative, adding that it would strengthen the HVAC ecosystem, facilitate technology transfer, and boost skill development.