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

Storyline

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.

Read More: Global Industrial Robotics trends

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

Conclusion

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.

Rise in Demand from Manufacturing Industry Anticipated to Drive Industrial Automation Market over the Forecast Period: Ken Research

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Industrial automation is defines as the controlling & processing of heavy industrial machines, equipment and devices with the help of advanced systems & software, which are backed up by advanced technologies for instance cloud, machine learning, robotics and others. The automation devices include PCs, Programmable logic controller (PLC), Programmable automation controller (PAC), etc. The system can be very complex in nature, has huge number of devices working in synchronization using automation technologies.

The key advantages are included lower operating costs, lower wastage, reduction in human errors, efficient manufacturing, improve quality production, raise the level of safety, synchronization of procedures, reduce routing checks and a faster product lifecycle.

According to study, “Industrial Automation Market, by Type (Fixed Automation and Programmable Automation), by Technology (SCADA, PAC, PLC, DCS, HMI) and End-User (Machine Manufacturing, Oil & Gas, Aerospace & Defense, Electronics, Automotive, Pharmaceuticals) - Forecast to 2023” the key companies operating in the industrial automation market are Emerson Electric Co., Schneider Electric SE, General Electric Company, Honeywell International, Inc., Yokogawa Electric, Mitsubishi Electric Corporation, Rockwell Automation, Inc., Fanuc Corporation, Siemens AG, Ametek, Inc., ABB Ltd. Key companies in the manufacturing industry are focused on adopting & implementing industrial automation solutions to enhance the overall productivity & educate their employees and reduce high cost while accomplishing precision & flexibility.

Based on type, industrial automation market is segmented into fixed automation and programmable automation. Based on component, market is segmented into industrial robots, control valves, industrial 3D printing and machine vision market. Based on technology, market is segmented into Supervisory control and data acquisition (SCADA), PLC, PAC, Distributed control system (DCS), Human-machine interface (HMI), Operator training simulators (OTS), Variable frequency drive (VFD), Product lifecycle management (PLM), Asset performance management (APM), Plant asset management (PSM), Manufacturing execution system (MES) and Plant asset management (PSM) and Computer numerical control (CNC) routers. In addition, based on end-use industry, market is segmented into oil & gas, electrical & electronics, machine manufacturing, automotive & transportation, aerospace & defense, food & beverages, chemical, mining & metals, pharmaceuticals, electric power generation and others.

The industrial automation market is driven by rise in demand of industrial automation in manufacturing industries, followed by increase in government policies supporting adoption of industrial automation, rise in interconnectivity & Internet of Things (IoT) developments in computer-aided systems, growth in focus on economic diversification in emerging markets, rapidly surge in demand for fast production capacities and growth in organizations focused on worker safety. However, high implementation cost of equipment is a major restraint factor of market. Moreover, growth in adoption of industrial 4.0 across various industries and rise in industrial robotics are key opportunities for market.

Based on geography, the European region dominates the industrial automation market owing to growth in automotive production and rise in consumer electronics production in the region. The Asian-Pacific and North-American regions are anticipated to witness lucrative growth rate due to upsurge in economic growth, increase in the use of industrial robots and expand in urbanization over the forecast period. The global market is predictable to reach US $341.41 billion in 2023, growing at a CAGR of 9.35%, during 2019-2023.

To know more, click on the link below:-

Global Industrial Automation Market Research Report

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Global Industrial Automation Control Market Status (2015-2019) and Forecast (2020-2024) by Region, Product Type & End-Use

Global Industrial Automation Equipment (IAE) Market by Equipment Type, Industry Vertical, and Region 2014-2025: Growth Opportunity and Business Strategy

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