Daikin Industries announced on Tuesday 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.”
Initially, the joint venture will focus on supplying test samples of Rechi Group Taiwan’s rotary compressors—both inverter and non-inverter types—to Indian air conditioner manufacturers, facilitating swift adoption and evaluation. Shoji Uehara, Executive Officer of Global Operations Division at Daikin Industries Ltd, Japan, said, “This JV aligns with our mid-term business strategy to establish a major manufacturing hub in India. By partnering with Rechi Precision, we aim to create a stable supply chain for compressor production, support the ‘Make in India’ initiative, and contribute to the sustainable growth of the Indian market.”
Chen Shen Tien, Chairman of Sampo Corporation, the holding company of Rechi Precision, added, “Rechi Precision will bring technical know-how, research and development capabilities, and production engineering expertise to this joint venture. We will also focus on setting up sales and service operations in India for the rotary compressor business.”
Founded in Taiwan in December 1989, Rechi Precision Co., Ltd. is a global leader in the HVAC industry, known for manufacturing rotary compressors, motors, and other components. The company’s vision is centered on technical independence, world-class products, and fostering a top-tier technological lifestyle. All employees adhere to a management philosophy focused on “superior quality as a competitive advantage,” “technical excellence to lead the market,” and “comprehensive service to achieve customer satisfaction.” This philosophy serves as the core competence and guiding principle for Rechi as it aims to maintain its status as a global leader in the compressor industry.
Rechi’s vision extends to creating “endless possibilities in the energy conservation industry” and becoming a pioneer in providing avant-garde energy conservation products. Beyond generating corporate value and profit, the company is committed to its responsibility for protecting the earth’s environment and natural resources. This mission, “maximizing corporate value and fulfilling corporate social responsibility (CSR) to protect the earth,” is shared by all Rechi employees, who embody core values of “responsibility, integrity, and innovation.”
Daikin India is a leading player in the air conditioning industry, known for its commitment to providing advanced and innovative cooling solutions. Established as a subsidiary of Daikin Industries, Japan, Daikin India has been serving the Indian market with a wide range of products, including residential, commercial, and industrial air conditioners. The company is dedicated to delivering high-quality, energy-efficient, and environmentally friendly HVAC solutions that cater to the diverse needs of Indian consumers. With a strong focus on research and development, Daikin India constantly strives to introduce cutting-edge technology to enhance comfort and efficiency. The company also places a strong emphasis on customer satisfaction and service, with a wide network of dealers and service centers across the country. Through its commitment to quality and innovation, Daikin India aims to lead the market and contribute to the growth of the Indian HVAC industry.