Through Perfecting the Air, Daikin strives to make the world’s spaces happier and more comfortable.
Daikin leverages its experience and technology to deliver air conditioning solutions that meet the demands of any setting.
Daikin Airconditioning India Pvt. Ltd., a wholly owned subsidiary of Daikin Industries, Ltd., and Rechi Precision Co., Ltd., a global leader in the compressor business headquartered in Taiwan, have recently agreed to form a partnership and establish a joint venture in India to manufacture, design, and sell compressors to Indian HVAC industry. Pending the establishment of a manufacturing facility and receipt of all necessary regulatory approvals, operations for the joint venture are expected to begin by the end of FY2025.
Rechi is one of the world's leading compressor manufacturers and possesses excellent manufacturing know-how and technology in rotary compressors, motors, and other components for the HVAC industry. Similarly, it has earned a strong market reputation for manufacturing low-cost, high-quality compressors.
The partnership plans to leverage the business foundation of Daikin in the Indian market and the manufacturing capabilities of Rechi for low-cost, high-quality compressors with the aim of ensuring a stable supply of compressors to the Indian HVAC industry where demand continues to grow. At first, the new joint venture will begin by assembling Rechi’s rotary compressors in India for sale to Indian residential HVAC customers. In the future, the two companies will likely consider investment in the establishing a compressor factory with a production capacity to meet the fast-growing compressor demand in the Indian market.
For Daikin, this represents its latest investment for strengthening product supply capabilities in the Indian market. Since beginning local production at its Neemrana Factory in 2009, it has continued to expand production capabilities. The opening of its Sri City Factory in 2023 established a factory for Daikin that not only manufactures residential and commercial air conditioners but also features an integrated system extending from parts procurement to finished product production, including the in-house production of compressors. Since its market entry, Daikin has been working to promote air conditioners and maintaining their stable supply in India, as well as creating a market.
With an eye on the future growth rate for the Indian market, Daikin is implementing various management strategies. Underlying its partnership with Rechi is the awareness by management for the issue of “how to keep ensuring the necessary volume of compressors, which are a strategic component, in the medium to long term.”
Through this partnership, Daikin aims to contribute to the sustainable growth of the Indian market through the sale and stable supply of compressors to the HVAC industry while also seeking to solidify its business foundation that will lead to the Daikin Group’s growth in India.
About New Joint Venture
Company Name: DAIKIN-RECHI India Pvt Ltd
Establishment: February 2025 (planned)
Headquarters: Daikin India Okhla Office (Delhi, India)
Capital: Approximately 1.8 million dollars Shareholding Ratio: Daikin India 51%, Rechi Corporation 49%
Business activities: Development, manufacturing, sales, and after-sales service of air conditioning compressors
About Rechi
Founded in Taiwan in December 1989, Rechi Precision Co., Ltd. is a world leader in the HVAC industry for the manufacture of rotary compressors, motors, and other components. Its vision is for technical independence, world class products, and the creating of a top-notch tech life. All employees share the management philosophy of “superior quality as the competitive advantage,” “technical excellence to lead the market,” and “comprehensive service to win customer satisfaction,” which has become the core competence and guiding principle for Rechi as a global leader in the compressor industry. It further has the vision to "create endless possibilities of the energy conservation industry & become the top provider of pioneer (avant-garde) energy conservation products." In addition to creating corporate value and profit, the company also vows to fulfill its responsibility for preserving the earth’s environment and natural resources. That mission is “maximization of corporate value and the CSR of protecting the earth,” with all Rechi employees sharing its core values of “responsibility, integrity, and innovation.”
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