Hitachi-Highly JV to expand compressor production capacity

Hitachi-Highly JV to expand compressor production capacity

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Highly Electrical Appliances India Pvt Ltd, a Joint Venture of Japan-based Hitachi and Highly of China, has announced its plans to expand the production capacity of its sole Indian plant in Gujarat from current 2 million units per annum to 3 million units per annum by next financial year. The plant at Changodar near Ahmedabad was started five years ago with the initial capacity of 1 million units and was expanded to 2 million by FY 2016-17.

Compressor manufacturing capacity will be expanded to 3 million by 2019-20 and further to 4 million by 2021. According to Li Haibin, Chairman of the company, “AC market in India would reach 8 million units per annum from current around 5 million by 2021. If we don’t expand our sole plant here we would lag behind.”

Director and Vice President Sameer Bhargava said that the demand for inverted compressors fitted ACs was rising with a greater speed than earlier thought of. “It has taken around 45 per cent share of the AC market so far. Now as per the new regulations the earlier 5 star ACs would be deemed 3 star only. So the earlier compressors have reached their optimum point of sorts and it has increased the demand of inverter compressors. We also need to educate people about energy conservation while using ACs by telling them what is the proper temperature setting for that,” he added saying that in Indian climates it should be from 23 to 24 degrees as every degree increase in temperature setting saves 6 per cent on power expenses.