Voltas, India’s largest air-conditioner maker, said it will invest Rs 500 cr to set up a AC and appliance manufacturing complex in Tirupati.
The plant will initially manufacture and assemble air conditioners and related cooling products, starting from the second half of next year. It will have a total capacity of more than 1 million units.
“The Company plans to invest over Rs. 500 Crores while putting together an OEM base for home appliances, and simultaneously creating local employment opportunities in the region,” the Tata Group firm said.
Most of the appliance manufacturing plants in India are located either in the national capital region, in Western India or around Chennai.
Andhra Pradesh, since its bifurcation, has been trying to attract more and more industries as it is among the most backward in terms of having an industrial base among its three south Indian neighbors.
“The choice of Andhra Pradesh as the destination for the new manufacturing unit was due to the State’s ‘ease of doing business’, and growing focus on ‘Make in India’,” the company said.
The factory will be spread over 65 acres. The company said it plans to create “technologically advanced products” by focusing on research and development.”
Voltas, which has a 24% share in the residential air-conditioner market in India,
The company said it chose Tirupati for the ease of accessing the South Indian market as well as for its road and port connectivity.
The plant will cater to the South, West and East Indian markets.
“We are delighted to have laid the ground for the Voltas manufacturing plant here in Tirupati,” said Pradeep Bakshi, Managing Director & CEO of Voltas Limited. “We are thankful to the Government of Andhra Pradesh, and APIIC officials for all the support extended.”