Japanese air conditioner maker Fujitsu General is planning to set up a manufacturing facility in India with an estimated investment of $200 million.
The expansion plan is part of its $1-billion investment globally for setting up manufacturing plants, automation and R&D centres across countries. The proposed facility in India is targeted to manufacture customised products for the domestic market in the initial phase.
“We are looking at setting up a manufacturing plant in the next two-three years. While the proposal is still in the initial stage, we have started talking to all states and most likely, the facility may come up in south India,” Etsuro Saito, president of Fujitsu General, said.
Currently, air-conditioners are imported from its facility in Thailand. The company’s turnover for the last fiscal was Rs 1,500 crore and it is expecting a growth rate of 25%. The domestic market contributes to about 10% of its overall sales volume, which is around 3.5 million units annually.
“Keeping in mind the growth potential in the Indian market, the company has planned for structural changes and investments in manufacturing facilities. This will help the brand to be more competitive and also develop India-specific models. We would like to increase the market share to over 5% in the next two years…” he said.