Communicate To Collaborate

Bosch Plans €80 Million for AC Manufacturing, engineering and Localisation in India

1 hour ago
TheDialog
9

 

Bosch Home Comfort plans to invest €80 million, approximately ₹900 crore, in India over the next few years to expand manufacturing capacity, increase localisation and strengthen engineering and testing capabilities, according to a PTI interview published on 1 November 2026.

 

The German group also plans to introduce Bosch-branded air conditioners in India in 2027, alongside its existing Hitachi portfolio. The proposed expenditure will support its residential and light-commercial cooling businesses.

 

Two brands for different market segments

 

Managing Director Sanjay Sudhakaran said the company would position Hitachi in the mainstream and mass-premium segments, while Bosch would target performance-premium and super-premium buyers.

 

Bosch-branded models are expected to be priced at around ₹45,000–₹50,000 and above. The two brands will have distinct product portfolios, features and pricing.

 

The company is targeting a double-digit share of India’s air-conditioning market within two years and a place among the country’s top five cooling and comfort brands over the medium term. Mr. Sudhakaran cited low room air-conditioner penetration, rising disposable incomes and economic growth as factors behind its expansion plans.

 

Manufacturing and research in Gujarat

 

The investment will support manufacturing expansion and light-commercial products, including Hitachi-branded variable refrigerant flow systems, which can serve multiple indoor units.

 

The company manufactures its latest Hitachi VRF range at Kadi in Gujarat, where annual manufacturing capacity exceeds one million air-conditioning units. It has also expanded its global research and development centre in Ahmedabad to focus on light-commercial cooling technologies.

 

According to the reported interview, approximately 75 per cent of procurement is sourced domestically. The Kadi facility manufactures components including heat exchangers, sheet-metal parts, tubing and coils, and undertakes painting operations.

 

Distribution plans include using Hitachi’s existing network while exploring access to Bosch and BSH home-appliance stores. Large-format retailers, regional outlets and online platforms will remain part of its sales channels.

 

Expansion follows global cooling acquisition

 

The India plans follow Bosch’s acquisition of the residential and light-commercial heating, ventilation and air-conditioning business of Johnson Controls, including the Johnson Controls-Hitachi Air Conditioning joint venture, in August 2025.

 

Bosch described the transaction as the largest acquisition in its history. It expanded the Home Comfort division’s global manufacturing network from 17 to 33 plants and its development locations from 14 to 26.

 

India already features in the group’s wider engineering strategy. In its review of 2025 operations, Bosch Home Comfort said it was significantly expanding development and testing capacity at Kadi in India and Wuxi in China, focusing on ductless air-conditioning systems for residential and small commercial buildings.

 

The Indian business, formerly Johnson Controls-Hitachi Air Conditioning India Limited, was renamed Bosch Home Comfort India Limited with effect from 4 November 2025, according to its stock-exchange disclosures.

 

For India–Germany business ties, the proposed investment builds on an established Indian manufacturing and engineering operation now within the German group. Its scope spans local production, component sourcing and product development, with spending planned over several years and the Bosch-branded launch scheduled for 2027.

Leave a Reply