Carrier, Sri City ink pact for sustainable cooling manufacturing facility in AP

Vijayawada: In a boost to Andhra Pradesh's manufacturing sector, Carrier Air Conditioning & Refrigeration Ltd signed a lease deed with Sri City to establish a new facility focused on sustainable cooling systems. The agreement was formalised and exchanged by Carrier India Managing Director Sundaresan Narayanan and Sri City Managing Director Ravindra Sannareddy in the presence of Tirupati district collector S Venkateswar.The new manufacturing plant by Carrier will be set up on 39 acres and forms part of Andhra Pradesh's push to attract technology-driven industries and expand its manufacturing clusters. Presiding over the ceremony, Venkateswar said the state govt was committed to improving ease of doing business and speed of delivery. He noted that Sri City was emerging as a major hub for the HVAC sector, housing every major company and producing more than 50% of India's air conditioners.Carrier plans to invest ₹1,000 crore in the project. According to officials, the facility will generate 1,000 direct and 2,000 indirect jobs. The unit will incorporate green manufacturing processes and cater to domestic and export demand for energy-efficient commercial cooling solutions.The minister for ITEC and HRD Nara Lokesh said that the investment was an endorsement of the state's project facilitation measures. He said Carrier moved from its initial visit to land handover and finalisation within 8 months. "This 39-acre facility at Sri City will create over 3,000 jobs and position Andhra Pradesh as a leading air-conditioning manufacturing hub," he said. Narayanan said the new facility would cater to growing demand for energy-efficient cooling solutions and generate employment. Sannareddy said the investment would strengthen Sri City's position as an HVAC manufacturing hub.The project follows multiple rounds of discussions between Carrier's management and the state govt on the industrial policy, infrastructure availability and execution timelines. Sources said that Andhra Pradesh faced stiff competition from Tamil Nadu, which also tried hard by offering incentives to Carrier, which is setting up its second unit in the country. The upcoming facility will complement the company's existing operations in Haryana and aligns with its India expansion strategy.