Godrej to invest 100cr to boost AC production capacity by 8 lakh units

Investment in Shirwal and Mohali will add capacity of 4 lakh units each

Godrej has inaugurated their new AC manufacturing line as a part of their strategic plan to increase the production capacity in lieu of the expected rise in demand in the future. The first phase of the 100cr investment plan has been completed in Shirwal where the new line will produce the latest models of eco-friendly R290 air conditioners launched by Godrej.

The new AC line in Shirwal is spread across 1.50 lakh sqft. The brand has invested INR 50 Crores in capital, dedicated to machinery, tools infrastructure and backward integration for the air conditioner category including AC heat exchanger coils & Indoor Units. This will add 4 lakh units of AC production capacity at Shirwal in 2021. Another 4 lakh units of AC production capacity will be added in Mohali by 2025 with an additional similar investment, taking the total investment to Rs. 100 Cr. The backward integrated manufacturing unit will equip the brand with greater agility and flexibility in terms of its offerings – both features and aesthetics, enabling it to respond faster to changing consumer needs.

Commenting on the new assembly line, Mr. Kamal Nandi, Business Head and Executive Vice President – Godrej Appliances, said, “We take pride in our manufacturing capabilities. Both of our manufacturing plants at Shirwal and Mohali are the first in India to be coveted with CII’s GreenCo Platinum Plus rating, for our sustainable and green manufacturing practices. We have been working towards improving our indigenous manufacturing capabilities through backward integrations, moving a step closer to being able to manufacture most of our product categories in-house. The newly set up air conditioner manufacturing unit is yet another concrete step in bringing live our founder’s vision of a self-reliant India, while taking care of the environment. A capital of INR 100 Cr is earmarked for the venture of ~100% in-house manufacturing of eco-friendly ACs in Shirwal and Mohali by 2025, augmenting production capacity to 8 lakh units. The new ACs supplement heavy duty cooling with 99.9%+ virus sterilization thanks to Anti-Viral Nano filtration technology, in view of the need for greater hygiene at homes.”

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