Air-conditioner giants flock to South India, reshaping manufacturing corridor
Leading AC manufacturers are relocating production to the Sri City-Chennai corridor, driven by the PLI scheme and proximity to fast-growing southern markets.
A wave of major air-conditioner makers—including Daikin, Blue Star, LG, Carrier, Havells Lloyd, Voltas, Mitsubishi Electric and Samsung India—has established factories along the 100-km stretch between Sriperumbudur and Sri City, turning it into India’s newest AC production hub. The move is spurred by the central government’s production-linked incentive scheme and the strategic need to serve the rapidly expanding southern market.
Sri City’s co-founder Ravindra Sannareddy notes that the industrial zone has attracted ten AC manufacturers and 34 component suppliers in five years. Proximity to Chennai port cuts import costs for the 50-60 % of components sourced abroad, saving roughly ₹1,200 per unit and shrinking delivery times from twelve to three days. Additionally, the South’s virtually year-round heat lengthens the cooling season, making it an attractive market. This southward migration marks a reversal of the earlier north-India concentration that began with Carrier in Gurugram and Daikin in Neemrana.
Why it matters
The relocation lowers costs, speeds deliveries and boosts jobs, reshaping India’s appliance industry toward its hottest region.
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