Collaboration to expand rotary compressor technologies for residential HVAC solutions

Daikin Industries and Taiwan’s Rechi Precision have announced a joint venture to manufacture rotary compressors in India. The initiative aims to deliver localised, affordable, and reliable solutions for residential air conditioning, catering to growing domestic and overseas demand.

This collaboration is pivotal in accelerating the shift towards AC adoption by the rising middle class, meeting both affordability and availability and being relevant for Indian & overseas consumption. Under the joint venture agreement, Daikin Industries Ltd., and Rechi Precision Co. Ltd., Taiwan, will manufacture, design, and sell rotary-inverter & non-inverter compressors in India and some overseas markets. Rechi Precision’s innovative rotary compressor technology complements Daikin India’s portfolio and delivers benefits, including localised products, affordability, and improved reliability. A highlight of this collaboration is a 33 acre manufacturing facility in Sri City, Andhra Pradesh, aimed at addressing increasing customer demand while scaling operations to adapt to future market trends.

This JV agreement leverages Daikin India’s market leadership, industry expertise, sales network, and technical support alongside Rechi Precision’s proven rotary compressor technology and manufacturing prowess. They will provide residential customers with cost-effective air conditioners and support the high cooling demand. The joint venture will be established in India, with Daikin India holding a majority share. In the initial phase of the partnership, efforts will concentrate on providing test samples of Rechi Group Taiwan’s rotary compressors (both inverter and non-inverter) to India’s AC manufacturers to facilitate swift adoption and evaluation. 

KJ Jawa, Chairman & Managing Director of Daikin India, said, “This partnership marks a significant milestone in broadening Daikin India’s offerings, enabling us to deliver a wider array of advanced rotary compressor technologies tailored for residential HVAC solutions. As the market witnesses growing demand for cost-effective air conditioners, our extensive sales network, customer-centric approach, strong brand reputation, and reliable after-sales support—combined with Rechi Precision’s innovative rotary compressor expertise—will empower us to provide economical and efficient air-conditioning options for our valued customers.”

Shoji Uehara, Executive Officer of the Global Operations Division, Daikin Industries Limited, Japan, said, “This JV formation is in line with our mid-term business strategy to establish a major hub in India. By partnering with Rechi Precision, we aim to build a business foundation for compressor production and sales in India. Specifically, this new company will produce and sell compressors domestically to alleviate supply shortages and cater to Daikin’s internal and external demand. As we expand our business, we will support the “Make in India” policy as a leading air conditioning company and contribute to the sustainable growth of the Indian market through stable supply.”

According to Chen, Shen Tien, Chairman of Sampo Corporation, Holding Company of Rechi Precision, in this joint venture, Rechi Precision will bring technical know-how, R&D, continuous product development, and production engineering capability and play a key role in setting up sales and service capability in India for Rotary Compressor.

The JV aims to increase manufacturing, design, and sales of compressors in India and select overseas markets, aligning with the growing demand for affordable, feature-rich products. With the accelerating adoption of air conditioners, the partnership is committed to delivering reliable, high-performance, and cost-effective AC solutions. The joint venture is to be operational by the 4th quarter of FY24~25.