Daikin Industries, the top air-conditioning manufacturer in Japan, has injected a substantial amount of Rs 1,400 crore into its Indian branch. This is its biggest investment in capital up to now, with the goal of improving the production of final products and parts locally, as per sources.

According to recent regulatory filings with the Registrar of Companies (RoC) by Daikin Airconditioning India, the investment was carried out in two stages: Rs 600 crore in June and Rs 800 crore in August.

After this second stage, the subsidiary's paid-up share capital increased to Rs 1,582.9 crore. In May, the company increased its authorized share capital from Rs 1,500 crore to Rs 3,000 crore, allowing for potential future capital injections.

These documents show that the raised authorized share capital will aid in Daikin's continued business growth, including the expansion of its plant in Sri City, Andhra Pradesh, and also lead to a decrease in interest costs.

According to KJ Jawa, who is the Chairman and Managing Director of Daikin Airconditioning India, the money will be utilized to improve manufacturing capacity, specifically by increasing the production of components like compressors.

Daikin's goal is to raise the localization of its air conditioners from 75 to almost 90 percent, enhancing its position as a leader in India's production-linked incentive (PLI) program for air conditioners.

Jawa also mentioned that the main focus of the Rs 1,400 crore will be on funding construction, research and development infrastructure, skill development, brand promotion, and internal operations. The investment aims to optimize the capacity of their 75-acre manufacturing plant, which houses both a compressor and device factory in Sri City.