Daikin India & Rechi Precision, Taiwan set up JV

Global leader in HVAC Industry, Daikin Industries Ltd through its 100 per cent subsidiary, Daikin Airconditioning India Pvt Ltd (Daikin India) and global leader in compressor business Rechi Precision Co Ltd, Taiwan (Rechi Precision) have announced to set up a Joint Venture company to manufacture, design and sale of rotary (inverter and non-inverter) compressors in India and some overseas markets under a Joint Venture Agreement (JV Agreement). Rechi Precision’s innovative rotary compressor technology complements Daikin India’s portfolio and delivers substantial benefits including localised products, affordability and enhanced reliability. The joint venture is expected to become operational by fourth quarter of FY24~25. The manufacturing facility shall be established at Sri City, Andhra Pradesh.

This JV agreement leverages Daikin India’s market leadership, deep industry expertise, sales network and robust technical support alongside Rechi Precision’s proven rotary compressor technology & manufacturing prowess. Together, they will provide residential customers with a cost-effective air-conditioners and support the high cooling demand. This collaboration plays a pivotal role in accelerating the shift towards AC adoption by the rising middle class, meeting both affordability & availability, relevant for India and overseas consumption. Under this JV agreement, a 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.

“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,” said KJ Jawa, Chairman & Managing Director of Daikin India. “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.”

“This JV formation is in line with our mid-term business strategy to establish a major hub in India. By partnering with Rechi Precision, a Taiwanese company known for its cost-effective material procurement and manufacturing expertise and extensive global track record in compressor sales, 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 both Daikin 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,” said Shoji Uehara, Executive Officer, Global Operations Division, Daikin Industries Limited, Japan. 

“In this joint venture, Rechi Precision will bring technical knowhow, R&D, continuous product development, production engineering capability etc and play a key role in setting up sales and service capability in India for Rotary Compressor Business. We are very excited to partner with Daikin and bring latest technology in the field of Rotary Compressor to India,” said Chen, Shen Tien Chairman of Sampo Corporation, Holding Company of Rechi Precision.