Daikin Industries announced that it is forming a joint venture with Rechi Precision Co Ltd through its Indian subsidiary, to manufacture, design, and sell rotary compressors for air conditioners. Daikin Airconditioning India will hold a 51 per cent stake in the JV, while Rechi Precision will hold 49 per cent.

The joint venture, expected to begin operations in the fourth quarter of FY 24-25, will establish a 33-acre facility at Sri City, Andhra Pradesh. Industry sources estimate that the partners will invest around ₹1,000 crore over the next 4-6 years.

“This agreement combines Daikin India’s leadership in the market, deep industry expertise, extensive sales network, and technical support with Rechi Precision’s established rotary compressor technology and manufacturing capabilities,” a joint statement said. 

“Together, we aim to deliver cost-effective air conditioners that meet the high cooling demand of residential customers.”

KJ Jawa, Chairman & Managing Director of Daikin India, commented, “This partnership marks a significant milestone in expanding Daikin India’s offerings, allowing us to introduce a wider range of advanced rotary compressor technologies specifically designed for residential HVAC solutions. With our strong brand reputation and customer support, coupled with Rechi Precision’s rotary compressor expertise, we will provide more affordable and efficient air-conditioning options to our customers.”