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MEI’s Strategic Investment: Pioneering Air-Conditioner Factory in Chennai : Ken Research

MEI to Invest 1,891 Cr in Chennai Air-Conditioner Factory driving an employment generation capacity of 2000 jobs


  1. MEI’s ₹1,891 Crore Investment in Chennai Facility
  2. Creating 2,000 Jobs – Meeting Surging Demand
  3. MoU with Tamil Nadu – Strategic Expansion
  4. As per Ken Research, the investment will prove to be a great initiative given the employment generation capacity that it has.

Mitsubishi Electric India (MEI), a subsidiary of the renowned Japanese conglomerate Mitsubishi Electric with a market cap of $37 billion, is making a significant investment of 1,891 crore in a state-of-the-art air-conditioner and compressor factory near Chennai. This strategic move marks MEI’s maiden manufacturing facility in India, aiming to cater to the surging demand for air conditioners in the country.

1. What is it?

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Mitsubishi Electric India (MEI) is set to make a significant impact with its 100% foreign direct investment in a new air-conditioner and compressor factory near Chennai. The investment, totaling 1,891 crore, is expected to create over 2,000 job opportunities in the region, according to a recent press release.

The project’s development was formalized through the signing of a memorandum of understanding (MoU) between MEI and the Tamil Nadu State government. The virtual foundation stone for the project was unveiled by Chief Minister MK Stalin during the ceremony, marking a momentous step towards meeting the escalating demand for air conditioners in India.

2. The Regional Analysis

Mitsubishi Electric India’s upcoming facility will span 52 acres at Origins by Mahindra in Peruvoyal Village, Gummidipoondi Taluk, Thiruvallur District. The production is set to commence in October 2025. Initially, the factory will have an annual capacity of up to 3,00,000 room air conditioners. However, by the beginning of December 2025, the capacity is expected to more than double, reaching an impressive 6,50,000 compressors, as revealed in the press release.

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This expansion signifies the company’s commitment to meeting the growing demand for air conditioners in India and strengthening its position in the market.


The facility as per our estimates at Ken Research is not only a great initiative from the company’s point of view but also from the government’s perspective if we take into account the employment generation capacity as well as the R&D prospects available.

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