₹1,000 Crore AC Manufacturing Unit Launched in Tirupati

Andhra Pradesh IT and Industries Minister Nara Lokesh on Wednesday laid the foundation stone for a major air-conditioner manufacturing facility by Carrier Global at Sri City, marking a significant step in the state’s industrial expansion.

The project, with an investment of ₹ 1,000 crore, is expected to generate around 3,000 jobs, both directly and indirectly. The facility will not only focus on large-scale manufacturing but also on developing advanced cooling technologies , strengthening the state’s capabilities in the HVAC sector .

Highlighting the broader vision, Lokesh said Andhra Pradesh is steadily positioning itself as a major hub for cooling solutions in India. The state has already attracted substantial investments in the HVAC segment, estimated at around ₹ 12,000 crore, supported by a growing ecosystem of manufacturers and ancillary units.

Sri City, spread across about 7,500–8,500 acres, has emerged as a prominent industrial hub , hosting companies from over 30 countries. The integrated business city has recorded exports exceeding $ 6 billion and created employment for nearly 70,000 people, with women comprising a significant share of the workforce.

Looking ahead, the minister noted that Sri City is projected to contribute nearly 60% of India’s air-conditioner production in the coming years, while also accounting for up to 80% of the country’s AC exports, underlining its strategic importance in the sector.

The state government is also focusing on building a comprehensive industrial ecosystem. In line with rising global demand for digital infrastructure, emphasis is being placed on data centers and the manufacturing of advanced cooling systems, high-efficiency chillers, and power electronics. This approach integrates supply chains, manufacturing, and skill development to support long-term growth.

To bridge the gap between education and industry, the government will soon launch “Naipunyam,” an AI-based skill assessment platform aimed at improving employability among youth and aligning their capabilities with industry needs.

Lokesh further stated that Andhra Pradesh is developing 22 industrial clusters across key sectors, including renewable energy, pharmaceuticals, data centers, and manufacturing. He reaffirmed that infrastructure and investor-friendly policies will continue to drive the state’s efforts to emerge as a global manufacturing destination.