Mahindra Industrial Park Chennai: Mitsubishi Electric to invest $222 million to set up factory in Mahindra’s Chennai Park

Mitsubishi Electric India has entered into an agreement with Mahindra Industrial Park Chennai (MIPCL), a joint venture between Mahindra World City Developers and Sumitomo Corporation of Japan, to set up its plant spread over 52 acres at Origins by Mahindra, Chennai.

The electric and electronic equipment manufacturing company will be investing over $222 million or over Rs 1,819 crore to set up an air-conditioners and compressors’ manufacturing factory on this land parcel that has been leased for a long-term tenure of 99 years.

The new plant will be Mitsubishi Electric’s first manufacturing facility for air conditioners and compressors to meet the growing demand in the country. It is expected to commence operations by October 2025.

“The new manufacturing facility is expected to strongly support stable product supply as the Indian market continues to grow due to its increasing population and expanding economy. It also will strengthen development capacities to meet local demands and provide product lifecycle solutions incorporating air conditioning and refrigeration equipment,” said Kazuhiko Tamura, Managing Director, Mitsubishi Electric India.

Once fully operational, the factory will enable Mitsubishi Electric to achieve an annual production capability of 300,000 units of room air conditioners and 650,000 units of compressors. The company had started importing air conditioning and refrigeration systems into India in 2010, through its subsidiary Mitsubishi Electric India.

“Our strategic location, coupled with our robust infrastructure and commitment to sustainability, positions us as a leading destination for the manufacturing industry. At Origins by Mahindra, we remain dedicated to providing our clients with unparalleled service excellence as we continue to pave the way towards India’s ‘Make in India’ mission by facilitating global standards of manufacturing in the country,” said Rajaram Pai, Chief Business Officer – Industrial, Mahindra Lifespace Developers.

The new factory will be a part of the first phase of Origins by Mahindra, Chennai, spread over 307 acres, which is a preferred industrial destination for several companies including those from Japan and Taiwan.Origins in Chennai has already entered into such agreements with multiple Japanese companies including a conglomerate Yanmar Group, Nissei Electric, and USUI Susira International. Taiwanese companies including INTJR Precision Technology, Autogrip Machinery India, and Masano Seiki have also set up their facilities here.

Of these, Yanmar Group has started operations of it maiden diesel engine manufacturing facility in India with an annual production capacity of 80,000 engines that will cater to domestic and export markets.

With the Mitsubishi Electric pact, around 65% of the first phase of Origins in Chennai has been leased out.

In 2017, Mahindra Lifespaces launched its industrial clusters brand Origins by Mahindra to cater to the growing need for sustainable industrial infrastructure to provide impetus to India’s rising prowess as a global manufacturing and investment destination.

The first Origins project was launched in Chennai and is strategically located on NH16 and within the influence zone of Chennai-Bangalore Industrial Corridor (CBIC) and Chennai-Vizag Industrial Corridor (CVIC) near Ponneri.

It also has proximity to three major ports of Chennai including the Chennai Port, Ennore Port and Kattupalli Port, and connectivity to the CBD area of Chennai City.