Sri City, Andhra Pradesh, now produces 50% of India’s ACs set to reach 60% by 2027. With LG, Daikin & 20+ suppliers it’s India’s ‘Cooling Capital’ and a global HVAC export hub.
Andhra Pradesh’s Industrial Hub Now Home to LG, Daikin & 20+ HVAC Suppliers
Vijayawada : Sri City Andhra Pradesh’s flagship Special Economic Zone (SEZ) has solidified its position as India’s air conditioning (AC) manufacturing powerhouse earning the moniker ‘Cooling City’. With LG Electronics set to begin production soon the industrial hub will soon account for 60% of India’s domestic AC production and 80% of exports transforming the nation into a global HVAC manufacturing leader.
Why Sri City is India’s AC Manufacturing Epicenter?
1. Dominance in AC Production
✔ Current Capacity: 50% of India’s ACs made in Sri City
✔ Projected 2027 Share: 60% domestic production, 80% exports
✔ Major Brands: LG, Daikin, Blue Star, Voltas, Panasonic, Hitachi, Carrier (in talks)
✔ Component Ecosystem: 17+ suppliers for compressors, coils, PCB assemblies
2. Key Expansions & New Entrants
- LG Electronics – Starting production in 2026 (ACs, refrigerators, appliances)
- Daikin-Reichi JV – Manufacturing AC compressors for Indian & global markets
- Epack Durable – Expanding into refrigerators & washing machines
- Carrier (US) – In discussions to set up a plant
3. Government & Policy Support
✅ PLI Scheme – Boosting domestic manufacturing
✅ Andhra Pradesh’s Industrial Policies – Fast-track approvals, infrastructure support
✅ Export Incentives – Sri City’s SEZ status boosts global competitiveness
Leadership Perspective
Dr. Ravindra Sannareddy, Founder & MD, Sri City:
*”From a vision to reality, Sri City is now India’s undisputed AC manufacturing hub. With LG, Daikin, and 20+ component makers, we’re creating an integrated HVAC ecosystem to rival China and Vietnam. By 2027, we aim to be the world’s largest AC production cluster.”*
Economic & Industrial Impact
🔹 Job Creation: 50,000+ direct & indirect jobs expected by 2027
🔹 Export Growth: 80% of India’s AC exports to ship from Sri City
🔹 Self-Reliance: Reduces dependency on Chinese AC components
🔹 Diversification: Expansion into refrigerators, washing machines, and appliances
What’s Next for Sri City?
- LG’s 2026 production launch
- More global brands expected (Carrier, others)
- Compressor & electronics localisation to cut imports
