Mitsubishi Electric will invest Rs 1,891 crore by way of Foreign Direct Investment (FDI) for setting up its first India facility to manufacture room air conditioners and compressors in Tiruvallur district in Tamil Nadu, providing jobs to over 2,000 people.
Chief Minister M K Stalin laid the foundation stone for the massive facility spread over 52 acres at Origins by Mahindra in Peruvoyal village, about 40 km from Chennai, on Tuesday after Mitsubishi Electric India (MEI) and the Tamil Nadu Government signed a Memorandum of Understanding (MoU).
The Japanese electronics equipment manufacturer said the factory will be ready for production in October 2025 with an initial annual capacity of 3 lakh room air conditioners and 6.5 lakh compressors by the beginning of December 2025.
The yet-to-be-built state-of-the-art manufacturing facility will be MEI’s first production unit in India after it entered the air conditioning and refrigeration systems business in India in 2010. The fresh investment, which will result in the creation of over 2,000 jobs, is aimed at assisting the rising demand for Mitsubishi products in the Indian market.
“To get Mitsubishi to pledge an investment of Rs 1,891 crore just before my Japan visit is a smart move by the Tamil Nadu Industries Department. I laud them for getting this FDI,” Stalin said in his address. He added that the plant will bring in a large number of suppliers and ancillary industries to Tamil Nadu, contributing to the enhancement of production in the electronics sector.
Industries Minister Thangam Thenarasu said the investment by MEI will strengthen and broaden the ties between India and Japan. Talking about TN’s investment pitch, the minister said the state continues to attract investments in sectors like Electric Vehicles (EV) and renewable energy and assured necessary cooperation and support to MEI.
Kazhuhiko Tamura, Managing Director, MEI, said the company plans to make the Chennai factory a “global hub” by suggesting that the facility, besides catering to the local market, will also manufacture ACs and compressors for the export market.
In his speech, Stalin said MEI has handed out an assurance that it will provide 60 percent of jobs at the new facility to women and equip them with the necessary skills and training. “As a government that attaches a lot of importance to the development of women, we continue to welcome companies that provide jobs to women,” Stalin added.
This will be Mitsubishi’s first room air conditioner manufacturing facility in India after Japan, Thailand, China, UK, Turkey, and Mexico. Also, this will be the first Mitsubishi facility to produce outdoor units, indoor units, and compressors in the same location outside Japan.
The investment pledge and groundbreaking ceremony comes just weeks before Stalin’s high-profile visit to Japan and Singapore to meet business leaders and invite them to invest in Tamil Nadu.
MEI, which is targeting the sale of ACs and refrigeration systems worth USD 10.5 billion) worldwide by 2026, said it chose Chennai as the location for its unit due to its “strategic location advantages” and proximity to multiple ports.
The investment by MEI comes a year after South Korea-based Samsung pledged to invest Rs 1,588 crore to set up a compressor manufacturing unit for refrigerators in Sriperumbudur near Chennai to produce 80 lakh compressor units a year for the domestic and export markets.
MEI said the factory will implement various initiatives for carbon neutrality, including the minimization of carbon dioxide emissions through enhanced thermal insulation, the use of highly efficient air conditioning and heated-water systems, and LED lighting. It will also meet sustainable development goals (SDGs) through measures such as reusing wastewater through underground filtration treatment and site greening.