Leading manufacturers said the Production Linked Incentive (PLI) scheme approved by the Center earlier this week will help in providing an equal opportunity to the domestic players and create an enabling environment for the industry to compete globally.
Industry players such as Daikin, Blue Star and Panasonic said the firms will have an opportunity to create higher quality products at par with global counterparts.
On Wednesday the government said It will select 42 firms as beneficiaries under the PLI scheme The selected applicants for the white goods sector include 26 for air-conditioner manufacturing with a committed investment of ₹3,898 crore.
The highest accepted offer of ₹ 538.70 crore was from Daikin Industries of Japan. Its subsidiary Daikin Airconditioning India plans to manufacture compressors, heat exchangers, sheet metal components and plastic molding components under the PLI scheme at Sri City in Andhra Pradesh, where it is setting up a 75-acre greenfield project.
“This investment is not only for India, but we are also looking at an export market at large. We are following the vision of the government. It is quite positive,” Daikin India CMD KJ Jawa told PTI. Told.
Through the PLI scheme, the firm is aiming to make India a production hub for the African and West Asian market, he added. “we are looking [a] Taking advantage of the China-plus-one model and the current resistance against China after the pandemic. Daikin has established itself very well over the years. We will also set up a compressor plant, device factory and heat exchanger.”
‘More locally manufactured ACs’
Panasonic India CEO Manish Sharma said: “Last year, the Indian AC market was pegged at around 7.5 million. Out of this 2.5 million were imports, which have come down significantly due to the ban on import of gas filled ACs.
“We expect the market to reach 9 million this year; of this, 8-8.5 million will be [made] locally. Currently, ACs come with 25% local value addition; With the existing PLI scheme, it can go up to 75% in the next 3-5 years,” he said.
Blue Star MD B Thiagarajan said it has received approval for heat exchangers and sheet metal components for its upcoming project in Sri City.
“The constituent ecosystem in the country will be good in the next three years,” he said.
Eric Braganza, President, Consumer Electronics and Appliances Manufacturers Association, said: “The scheme will lead to inclusive growth, which in turn will help generate more employment opportunities in the country and boost the economy by bringing large scale manufacturing to India. To.”
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