AP to Manufacture 80% of India's ACs by 2028: Lokesh

• Andhra Pradesh attracts ₹1,000 crore Carrier manufacturing investment
• New Sri City plant expected to generate 3,000 jobs
• State targets leadership in cooling and AI infrastructure sectors

Andhra Pradesh has taken another step toward strengthening its manufacturing ecosystem as IT and HRD Minister Nara Lokesh laid the foundation stone for a new air-conditioner manufacturing facility by Carrier Global Corporation at Sri City in Tirupati district. The project, backed by an investment of nearly ₹1,000 crore, is expected to significantly boost the state’s industrial and electronics manufacturing ambitions.

The upcoming facility will be developed over 39 acres and is planned as a modern smart manufacturing unit equipped with advanced technologies for producing HVAC and cooling solutions. Once operational, the plant is expected to generate employment opportunities for around 3,000 people directly and indirectly, while also strengthening local supply chains and supporting ancillary industries in the region.

During the foundation ceremony, Lokesh highlighted Andhra Pradesh’s broader strategy of developing integrated industrial ecosystems instead of standalone manufacturing units. He stated that the state is focusing heavily on sectors linked to artificial intelligence, data centres, precision manufacturing, and advanced cooling systems. According to him, growing investments in data centres and AI infrastructure are increasing demand for high-efficiency cooling technologies, creating major opportunities for HVAC manufacturing in the state.

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Lokesh also noted that Andhra Pradesh has already emerged as a major hub for air-conditioner manufacturing, hosting several leading companies along with a strong network of component suppliers. He projected that Sri City could become one of India’s largest AC manufacturing centres over the next few years, further strengthening the state’s industrial profile.

The investment reflects rising confidence among global manufacturers in Andhra Pradesh’s industrial policies and infrastructure. Carrier already operates manufacturing and engineering facilities in India, and the Sri City project is expected to expand its domestic and international production capabilities.

The event also showcased the state government’s push toward skill development and technology-driven employment. Lokesh announced plans for ‘Naipunyam,’ an AI-powered skill assessment platform designed to improve workforce readiness and support industrial growth across emerging sectors.