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Mitsubishi Electric to invest approx ₹220 crore to set up factory in India

Mitsubishi Electric to invest approx ₹220 crore to set up factory in India
7 Jun, 2022

Japanese engineering company Mitsubishi Electric Corporation said that it will spend approximately ₹220 crore in its subsidiary Mitsubishi Electric India Pvt. Ltd. to set up a new factory in the country to manufacture inverters and factory automation (FA) control system products. 

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The factory will be located in Pune, Maharashtra, and will be spread across an area of 15,400 square meters. Its operations are expected to start in December 2023. 

According to the company, the new factory will expand its "capabilities to meet the growing demand" in India. It said that the Indian market is growing annually at around 8%, especially due to demand from sectors such as automobiles, food and beverage, pharmaceuticals, data centres, and textiles.

The Japanese company assured that the new factory will use highly efficient air conditioning systems and LED lighting in line with the company's carbon neutrality goals. It will also reuse wastewater through underground filtration treatment and greening to meet sustainable development goals.

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Mitsubishi Electric started its FA control systems business in India in the mid-1990s. In 2012, it acquired Pune-based Messung Group, one of its FA distribution partners in India. It further strengthened its business in India by building a local engineering team and expanding service and support capabilities. Manufacturing in India started in 2013. 

Mitsubishi Electric's FA product lineup includes motion controllers, power monitoring products, inverters, electrical discharge machines, laser processing machines, computerised numerical controllers, and industrial robots. 

Its India business includes development, manufacture, sales, and after-sales service of FA control system products; sales and after-sales services for air conditioners and semiconductors; and manufacture, sales, and after-sales service of electrical products for railways. 

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Other global engineering companies have also set up manufacturing plants in India. For instance, in February, US-based Emerson announced that it will open a 1,45,000 square feet manufacturing facility in Chennai, Tamil Nadu to manufacture automation products used in key industrial segments. 

The Covid-19 outbreak has also fueled demand for industrial automation as companies want to automate processes and avoid any major disruption due to future emergencies.