Mitsubishi Electric Expands India Operations with New AC–Compressor Hub

Tamil Nadu strengthened its position as a major manufacturing hub as Chief Minister M. K. Stalin inaugurated the new Mitsubishi Electric India air-conditioner and compressor manufacturing facility set up with an investment of ₹2,100 crore . The project follows an MoU signed with the Tamil Nadu government in 2023 , paving the way for the company’s expansion in the state. The plant is located at Origins by Mahindra , an integrated industrial park near Kavaraipettai and Ponneri , north of Chennai .

Spread across 2.10 lakh square metres (around 52 acres) , the facility has an annual production capacity of 3 lakh air conditioners and 6.5 lakh compressors . The project is expected to create over 2,100 direct and indirect jobs , giving a significant boost to local employment and strengthening the region’s industrial ecosystem.

The new unit is a full-scale manufacturing and assembly hub , not an R&D centre. It integrates advanced Japanese production technologies , along with digitally enabled and data-driven processes to ensure high standards of quality, safety and operational efficiency . The move aligns with Mitsubishi Electric’s strategy of deepening localisation , reducing import dependence, and strengthening supply chain resilience within India.

This is the company’s second manufacturing facility in India , complementing its Factory Automation Systems (FAS) plant in Pune , which produces industrial automation equipment. While the Pune unit focuses on high-tech industrial automation , the Chennai plant will manufacture consumer-facing cooling products , supporting India’s rapidly growing demand for energy-efficient air-conditioning solutions.

The facility’s location at Origins by Mahindra reflects Tamil Nadu’s growing reputation as a preferred destination for global investors. Mahindra provides the industrial infrastructure and ecosystem, while operations and production are fully managed by Mitsubishi Electric India .

Leaders emphasised that Chennai continues to serve as the state’s manufacturing backbone due to its strong industrial base, skilled workforce and investor-friendly policies. The locally manufactured products will comply with India’s evolving energy efficiency norms , contributing to lower energy consumption and supporting national sustainability goals.

Overall, the investment strengthens Tamil Nadu’s emergence as a high-tech, sustainable manufacturing hub , bringing employment, advanced technology and long-term industrial growth.