Mitsubishi Electric India has entered into an agreement with Mahindra Industrial Park Chennai (MIPCL), a partnership between Mahindra World City Developers and Sumitomo Corporation of Japan, to set up its plant spread over 52 acres at Origins by Mahindra, Chennai.

The electric and electronic equipment manufacturing company will be investing over $222 million or over Rs 1,819 crore to construct an air-conditioners and compressors’ manufacturing factory on this land parcel that has been leased for an extended tenure of 99 years.

The new plant will be Mitsubishi Electric’s first manufacturing facility for air conditioners and compressors to meet the increasing demand in the country. It is expected to commence operations by October 2025.

“The new manufacturing facility will be expected to strongly support stable product supply as the Indian market continues to grow due to its growing population and expanding economy. It also will boost development capacities to meet local demands and provide product lifecycle solutions incorporating air conditioning and refrigeration equipment,” said Kazuhiko Tamura, Managing Director, Mitsubishi Electric India.

The new factory will be a part of the first phase of Origins by Mahindra, Chennai, spread over 307 acres, which is a favoured industrial destination for several companies including those from Japan and Taiwan. Origins in Chennai has already entered into such agreements with multiple Japanese companies including a conglomerate Yanmar Group, Nissei Electric, and USUI Susira International. Taiwanese companies including INTJR Precision Technology, Autogrip Machinery India, and Masano Seiki have also set up their facilities here.