Kirloskar Pneumatic Company Limited and Godrej & Boyce Manufacturing Company are among five manufacturers provisionally selected under the government’s Production-Linked Incentive scheme to expand domestic production of air conditioner components.
The approvals, issued under the fourth round of the PLI scheme for air conditioners and LED components, are expected to result in total production of over ₹8,300 crore by FY 2027-28, along with fresh investments of ₹863 crore and nearly 1,800 additional direct jobs.
Besides Kirloskar Pneumatic and Godrej & Boyce, the selected firms include Indo Asia Copper Limited, Kryon Technology Private Limited and Pranav Vikas (India) Private Limited. All five companies are focused on manufacturing critical air conditioner components rather than finished appliances.
Kirloskar Pneumatic plans to manufacture compressors, motors, heat exchangers and sheet-metal components, while Godrej & Boyce will produce heat exchangers, sheet-metal parts and plastic moulded components. Indo Asia Copper will focus on copper tubes used in air conditioners, and Kryon Technology will manufacture control assemblies and motors. Pranav Vikas will produce motors, cross-flow fans, valves and heat exchangers.
With these additions, the total number of companies selected under the PLI scheme for air conditioners and LED lighting has increased to 85. Cumulative investment commitments under the scheme now stand at ₹11,198 crore, with projected production of about ₹1.9 lakh crore over the full scheme period.
The PLI scheme aims to reduce India’s dependence on imported air conditioner components by encouraging domestic manufacturing of core parts such as compressors, motors and heat exchangers. Domestic value addition in the sector is expected to rise from the current 20-25 per cent to around 75-80 per cent as projects under the scheme are implemented.
Eight additional applicants from the latest round have been referred to a Committee of Experts for further examination.
The PLI scheme for air conditioners and LED lights was approved in April 2021 with an outlay of ₹6,238 crore and will remain in force until FY 2028-29, offering incentives linked to incremental sales over a five-year period.
