[ad_1]
NEW DELHI: Mitsubishi Electric India Private Ltd, will set up a plant to manufacture air-conditioners and compressors at Mahindra Lifespace Developers Ltd’s industrial park in Chennai at an investment of $222 million.
The new plant will be Mitsubishi Electric India’s first manufacturing facility in India for air-conditioners and compressors and is expected to begin operations by October 2025. Once fully operational, the plant will enable Mitsubishi Electric to have an annual production capacity of 300,000 units of room air-conditioners and 650,000 units of compressors.
ET Infra has learned that Mitsubishi Electric India has signed a lease agreement of 99 years for setting up the plant in Mahindra Lifespace Developers’ industrial park ‘Origins’ in Chennai. The industrial park is located on National Highway 16, with proximity to three major ports in Chennai, Ennore and Kattupalli.
Rajaram Pai, Chief Business Officer, Industrial, Mahindra Lifespace Developers, in a conversation with ET Infra about the new investment, highlighted that it reflects a broader pattern of supply chain reconfiguration with manufacturing companies opting for a ‘China Plus One’ strategy. The investment will also address the increase in the consumption demand of white goods from a growing Indian middle class, he said.
“This is driving companies to relocate their manufacturing into the country. One, it saves logistics cost, second is that there are fiscal incentives provided by the government and third it always makes sense to have the development in a place closer to the consumer,” said Pai.
The first phase of ‘Origins’ by Mahindra in Chennai is spread over 307 acres and houses manufacturing facilities of companies from Japan and Taiwan.
Pai outlined that the company is focused on acquiring clients from the electrical, electronics, engineering, renewable sector and is targeting a revenue of Rs 500 crore in the industrial business segment by 2025.
The company’s development footprint spans 32.97 million square feet of completed, ongoing and forthcoming residential projects across seven Indian cities and over 5,000 acres of ongoing and forthcoming projects under development at its integrated developments and industrial clusters.
At 1500 IST, shares of Mahindra Lifespace Developers were trading at Rs. 364.65, down 1.1% on the National Stock Exchange.
[ad_2]
Source link
