Mitsubishi Electric, Tamil Nadu tie up for Rs 1,895 cr manufacturing unit

Japan’s Mitsubishi Electric Corporation on Tuesday signed an agreement with Tamil Nadu to set up a unit worth Rs 1,895 crore, marking a rare case of 100 per cent FDI in electronic equipment manufacturing in India.

It will be Mitsubishi Electric’s first air conditioner (AC) and compressor manufacturing facility in India. Origins by Mahindra, a joint venture, will build the facility on a 52-acre land in Peruvoyal village in Gummidipoondi Taluk in Thiruvallur district, according to the Memorandum of Understanding (MoU).

The unit will manufacture room air conditioners and compressors and provide job opportunities for more than 2,000 people. The MoU was followed by the groundbreaking ceremony. The association with Mitsubishi comes days before Tamil Nadu Chief Minister MK Stalin’s visit to Japan and Singapore to invite companies to the Global Investors Summit (GIS) in the state from January 10-11 next year.

The unit plans to start production in October 2025 with an initial annual capacity of 300,000 air conditioners and by the beginning of December 2025, 650,000 compressors. Stalin said his state is working to become a trillion dollar economy by 2030 and is at the forefront of welcoming industries.

The manufacturing unit was announced nearly a month after Mahindra Industrial Park Chennai (MIPCL), a joint venture between Mahindra World City Developers and Japan’s Sumitomo Corporation, signed a lease agreement with Mitsubishi Electric India to set up the unit at Origins.

According to Mitsubishi Electric’s 2025 Progress and Innovation Strategy, introduced in November 2021, it targets sales of air conditioning and refrigeration systems worth US$10.5 billion with an operating profit of 12% by March 2026 worldwide. “In line with this strategy, the company is accelerating the launch of high-performance, energy-efficient, and environmentally friendly products to deliver natural refrigerants that meet local needs, expand production for stable product supply and shorter lead times, and offer life-cycle solutions that include sales, service, and management,” the company statement said. Utilities and Product Recycling”.

Mitsubishi Electric India (MEI), the Japanese arm of the major corporation, was founded in 2010 and has marked its existence by selling imported products. “With the advantages of strategic location and multiple ports, it can be considered as one of the best manufacturing and investment destinations in India, prompting MEI to make this strategic investment in this state. Tamil Nadu has well-developed infrastructure with excellent connectivity to airports, ports, roads within India and overseas countries, to industrial areas , industrial corridor of plug-and-play facilities for new manufactures, and well-organized infrastructure facilities for social, health and educational services,” he said.

Origins is located on NH16 (part of Golden Square). It also falls under the influence area of ​​Chennai-Bangalore Industrial Corridor (CBIC) and Chennai Vizag Industrial Corridor (CVIC) near Ponri. Origins is also close to the three major ports of Chennai (Chennai Port, Inore Port and Katupalli Port) and has excellent connectivity to the Chennai business district.

The MoU signing ceremony was attended by Tamil Nadu Minister of Industries Thangam Thenarasu, Additional Secretary to Administration S Krishnan, Managing Director of Guidance Tamil Nadu and CEO Vishnu, Managing Director of MEI Kazuhiko Tamura, and Group President of Mitsubishi Electric Corporation, Yasumichi Tazunoki.