Five companies including Kirloskars and Godrej have committed investment of Rs 863 crore have been selected in the fourth round of inviting applications for Production Linked Incentive (PLI) for white goods that covered components of air conditioners and LEDs.

Kirloskar Pneumatic will be investing Rs 320 crore for manufacturing compressors, heat exchangers, motors and sheet metal components. Godrej has committed investment of Rs 58.69 crore to manufacture heat exchangers, sheet metal components and plastic moulding components.

Indo Asia Copper will invest Rs 258.97 crore in the fourth round of PLI for white goods to set up copper tube manufacturing capacity. Karyon Technology will invest Rs 175 crore and Pranav Vikas Rs 50 crore.

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Major Players and Investments

These five companies were selected from among 13 applicants. They will have total production worth Rs 8337.24 crore and generate additional direct employment of 1799 persons till FY 2027-28, a statement by the Department for Promotion of Industry and Internal Trade said..

So far 85 companies under the PLI Scheme for White Goods (ACs and LED Lights) have been selected. They have committed total investments of Rs 11,198 crore, resulting in production worth Rs 1,90,050 crore during the scheme period.

Scaling Towards Global Competition

The PLI Scheme on White Goods is designed to create a component ecosystem for Air Conditioners and LED Lights Industry in India. The Scheme extends an incentive of 6% to 4% on reducing basis on incremental sales for a period of five years subsequent to the base year and one year of gestation period. Domestic Value Addition is expected to grow from the current 20-25% to 75-80% through the scheme.

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The Union Cabinet had given approval to the PLI Scheme for White Goods (Air Conditioners and LED lights) to be implemented over FY 2021-22 to FY 2028-29 with an outlay of Rs 6,238 Crore on 7th April 2021. The Scheme was notified by DPIIT on 16.04.2021.

The first round of applications were invited in 2021 and second round in 2022. The third round was completed in January of 2025.