On February 17, 2026, global HVAC leader Carrier Air Conditioning & Refrigeration signed a landmark lease deed with Sri City, Andhra Pradesh, for a new mega-manufacturing facility.
The ₹1,000-crore project marks Carrier’s independent entry into the Sri City ecosystem, separate from its existing joint ventures in India. It reinforces the region’s status as the “Cooling Capital of India,” which now accounts for approximately 60% of the country’s total air conditioner production.
Project Blueprint: The Sustainable Cooling Hub
The facility is designed as a high-tech “Smart Factory” focused on decarbonization and global export standards.
- Scale: Spread across 39 acres within the Sri City Domestic Tariff Zone (DTZ).
- Investment: ₹1,000 crore to be deployed for world-class infrastructure and advanced manufacturing lines.
- Specialization: Sustainable and energy-efficient commercial cooling solutions, including Variable Refrigerant Flow (VRF) systems and industrial chillers.
- Timeline Efficiency: Highlighting the state’s “Speed of Doing Business,” the project moved from the first site visit to land handover in just eight months.
Economic & Employment Impact
The plant is projected to be a major economic engine for the Tirupati-Nellore industrial corridor:
- Job Creation: Expected to generate 1,000 direct jobs and 2,000 indirect jobs in the supply chain.
- Local Ecosystem: Carrier’s entry complements a massive cluster of existing HVAC giants in Sri City, including Daikin, Blue Star, Amber, Havells, Mitsubishi Electric, and the newly inaugurated Hisense facility.
- Export Potential: While primarily serving the rising Indian demand, the plant is positioned to act as an export hub for Southeast Asian and Middle Eastern markets.
The “Sri City HVAC” Powerhouse (2026)
With the addition of Carrier, Sri City has solidified its dominance in the white goods sector:
- Market Share: Sri City-based units are estimated to contribute 80% of India’s AC exports by 2027.
- Integrated Supply Chain: The park now hosts over 20 component makers, allowing OEMs (Original Equipment Manufacturers) to source compressors, heat exchangers, and copper tubing within a 10 km radius.
- Recent Milestone: This signing follows the February 11, 2026, groundbreaking of the Daikin-Rechi rotary compressor plant, which will eventually produce 9 million units annually in the same vicinity.
“Carrier’s investment is a powerful validation of Andhra Pradesh’s ‘speed of doing business.’ We are building a globally competitive industrial ecosystem where companies can scale with absolute confidence.” — Nara Lokesh, Minister for IT, Electronics & Communications, Andhra Pradesh.