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Andhra Pradesh to Produce 80% of India's ACs by 2028: Lokesh

Andhra Pradesh IT and Electronics Minister Nara Lokesh announced that the state aims to manufacture 80% of India's air conditioners by 2028. He spoke at the groundbreaking of a Carrier AC unit in Sri City, which already hosts nine major AC makers and 30 suppliers. The project involves a Rs 1,000 crore investment and is expected to create 3,000 jobs, with 50% of Sri City's 70,000 workforce being women. Lokesh also outlined plans to make Andhra Pradesh a hub for data centre manufacturing and cooling systems.

Key Points: AP to Make 80% of India's Air Conditioners by 2028

  • Andhra Pradesh targets 80% of India's AC production by 2028
  • Nine leading AC manufacturers and 30+ suppliers in Sri City
  • Rs 12,000 crore invested in the HVAC ecosystem
  • Carrier's Rs 1,000 crore plant to create 3,000 jobs
2 min read

Andhra Pradesh to manufacture 80 pc of India's air conditioners by 2028: Lokesh

Andhra Pradesh aims to manufacture 80% of India's air conditioners by 2028, says Minister Nara Lokesh at a new Carrier unit groundbreaking in Sri City.

"By 2028, thanks to Carrier, we should now achieve 80 per cent of India's air conditioning coming out of Andhra Pradesh. - Nara Lokesh"

Amaravati, May 6

Andhra Pradesh's Information Technology and Electronics Minister Nara Lokesh on Wednesday said that 80 per cent of India's air conditioners will be manufactured in the state by 2028.

Speaking at the groundbreaking ceremony of an air-conditioner manufacturing unit at Sri City in Tirupati district, Lokesh, projecting Andhra Pradesh as a major HVAC manufacturing hub, remarked that the state has already earned its unique distinction as the cool capital of India.

He noted that nine leading AC manufacturers, 30-plus component and supply chain players already have their presence in Sri City. "Close to Rs 12,000 crore worth of investments have gone into this rapidly expanding HVAC ecosystem."

On future manufacturing targets, he said: "By 2027, we expect to manufacture 60 per cent of India's air conditioning requirement here in Sri City. By 2028, thanks to Carrier, we should now achieve 80 per cent of India's air conditioning coming out of Andhra Pradesh."

The firm is set to invest Rs 1,000 crore in the project, which is expected to generate employment and livelihood opportunities for around 3,000 people, both directly and indirectly.

Emphasising the scale and success of Sri City, Lokesh said that Sri City, spread across 8,500 acres, is home to 250 companies from 31 countries and over $6 billion of exports coming out of this great land.

On employment generation, he noted: "70,000 jobs have been created so far, but what excites me most is 50 per cent of those jobs have gone to women."

"From automotive to electronics, food processing to precision engineering, Sri City represents the best of Make in India and Made in Andhra Pradesh," he said, adding that the new project adds another feather to its cap.

Lokesh also outlined a vision to make AP a one-stop hub for all data centre needs, saying: "We are not just building data centres, but their entire ecosystem."

He emphasised that the state is not just focusing on attracting data centres but on creating a full manufacturing ecosystem around them.

He highlighted the global race in data centres and artificial intelligence, expressing confidence that Andhra Pradesh will lead from the front.

He noted that data centres require advanced cooling systems, high-efficiency chillers, power electronics, and precision manufacturing, making it essential to build a strong supporting ecosystem.

He also welcomed the firm choosing Andhra Pradesh and Sri City as part of this broader vision, calling it a step toward strengthening the state's digital and industrial growth.

- IANS

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Reader Comments

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Sarah B
Interesting development. As someone who follows Indian manufacturing closely, the HVAC ecosystem in Sri City is becoming quite competitive. The integration with data centre cooling needs is a smart move - it creates a complete value chain.
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Nisha Z
80% by 2028 sounds ambitious but with 9 major AC makers already there, it looks achievable. However, I hope the state also focuses on affordable housing and skill development for the local youth. Not just jobs but good quality jobs with fair wages. 🤔
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Vikram M
Sri City has come a long way from being a sleepy industrial corridor. The 'cool capital of India' tag is well deserved now. But I'd like to see more transparency in how these 3,000 jobs are created - direct vs indirect, local hiring preferences, etc. Good initiative overall though! 👍
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Ravi K
This is exactly the kind of focused industrial policy we need. Instead of spreading thin across many sectors, AP is building a cluster-based approach with HVAC. The data centre ecosystem vision is also forward-looking. Hope other states learn from this model.
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Michelle N
A small but important point: the article mentions 'jobs for women' as a highlight, but doesn't specify what kind of roles. Are these assembly line jobs or managerial positions? We need more details on the quality of employment being created. Otherwise, good news for Indian manufacturing.
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