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Mitsubishi Electric to invest $223 million to build new factory in India

Mitsubishi Electric says it will invest approximately 26.7 billion yen (about $222.5 million), in its subsidiary company Mitsubishi Electric India to establish a factory for the production of room air conditioners and compressors in India.

Local production, targeted to start in October 2025, is expected to help the company meet growing demand in the Indian market. Initial annual capacity will total 300,000 room air conditioner outdoor units and, beginning in December 2025, 650,000 compressors.

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.

Mitsubishi Electric’s Advance & Innovation 2025 strategy, introduced in November 2021, is targeting sales of air conditioning and refrigeration systems worth 1.26 trillion yen (about $10.5 billion) and operating profit of 12 percent by the fiscal year ending March 2026.

Under the strategy, the company is accelerating its launch of high-performance, energy-saving and environmentally friendly products in order to offer natural refrigerants that meet local needs, expand production for stable product supply and shorter lead times, and introduce lifecycle solutions encompassing sales, service, facility management and product recycling.

Mitsubishi Electric expects to invest some 180 billion yen (about $1.5 billion) in related facilities worldwide, including Europe and the United States, over a five-year period ending in March 2026.

Mitsubishi Electric’s air conditioning and refrigeration systems business in India began with the establishment of Mitsubishi Electric India to start importing and selling products in 2010.

Thereafter, the company grew the business by expanding its sales channels and establishing a market position as a premium brand supplying a wide variety of high-quality, high-performance products.

The new 88,000 square-meter factory will be built on a 210,000 square-meter site in Tamil Nadu in southern India. The facility is expected to strongly support Mitsubishi Electric’s stable product supply as the Indian market continues to grow due to its increasing population and expanding economy.

It also will strengthen development capabilities to meet local demands and provide product lifecycle solutions incorporating air conditioning and refrigeration equipment.

The factory will implement various initiatives for carbon neutrality, including the minimization of carbondioxide emissions through enhanced thermal insulation and the use of highly efficient air conditioning and heated-water systems and LED lighting.

Furthermore, it will meet sustainable development goals (SDGs) through measures such as reusing wastewater through underground filtration treatment and site greening.

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