Nara Lokesh lays foundation for Carrier Global’s AC manufacturing facility in Tirupati

Andhra Pradesh IT Minister, Nara Lokesh laid the foundation stone for Carrier Global's manufacturing facility, expected to generate 3000 jobs in the state.

Amaravati: Andhra Pradesh IT Minister Nara Lokesh on Wednesday laid the foundation stone for Carrier Global’s air-conditioner manufacturing facility at Sri City in Tirupati district, with the company set to invest Rs 1,000 crore in the project.

The project is expected to generate employment and livelihood opportunities for around 3,000 people, both directly and indirectly, while strengthening the state’s manufacturing ecosystem.

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“Lokesh laid the foundation stone for Carrier Global’s Rs 1,000 crore AC manufacturing facility in Sri City which marks another major step in Andhra Pradesh’s industrial growth journey and will create large-scale employment opportunities”, said an official press release.

According to Lokesh, Andhra Pradesh is focusing on creating a complete manufacturing ecosystem around data centres, including advanced cooling systems, high-efficiency chillers, power electronics and precision manufacturing.

Positioning Andhra Pradesh as the “cool capital of India”, the minister said the state already hosts nine leading air-conditioner manufacturers and more than 30 component and supply chain players.

According to the Minister, investments worth nearly Rs 12,000 crore have already flowed into the Heating, Ventilation, and Air Conditioning (HVAC) ecosystem, making the state a key hub for cooling equipment manufacturing.

Sri City is spread across about 8,500 acres and houses nearly 250 companies from 31 countries, with exports exceeding USD 6 billion.

“We are not just building data centres, but their entire ecosystem”, he said, highlighting the growing global race in artificial intelligence and digital infrastructure.

He noted that around 70,000 jobs have been created in Sri City so far, with nearly 50 per cent of the employment generated for women.

Highlighting the industrial diversity of the region, the Minister said sectors ranging from automotive and electronics to food processing and precision engineering have established a strong presence in Sri City.

Lokesh also said Andhra Pradesh is expected to manufacture 60 per cent of India’s air-conditioning requirement from Sri City by 2027, which could rise to 80 per cent by 2028 following Carrier’s investment.

The project is part of the state government’s broader push to position Andhra Pradesh as a major manufacturing and industrial hub, particularly in advanced cooling and infrastructure-related sectors.

Carrier Global’s investment is expected to further strengthen Sri City’s growing ecosystem for air-conditioner and cooling equipment manufacturing, it added.

The facility will support the expansion of allied industries and supplier networks while contributing to export-oriented manufacturing in the region.

Sri City has emerged as a major HVAC manufacturing hub, attracting large investments and generating significant employment opportunities over the years.

The Andhra Pradesh government is focusing on attracting global companies through industry-friendly policies, infrastructure support and large-scale industrial corridors, the press release added.
Lokesh further said that Andhra Pradesh is focusing on ecosystem-driven and cluster-based industrial development through both vertical and horizontal integration across sectors.

Outlining the approach, he said vertical integration involves strengthening the entire manufacturing chain from raw materials and components to finished products, while horizontal integration focuses on skilling, testing and certification infrastructure.

The Minister also announced that ‘Naipunyam’, called India’s first conversational AI-based skill assessment platform, will be launched by the end of May to improve youth employability and industry readiness.

He said the state is developing 22 industrial clusters across sectors such as air-conditioners, glass, renewable energy, data centres, medical devices, pharma, steel and compressed biogas.

According to Lokesh, Andhra Pradesh is also establishing specialised hubs including a Space City, Data Centre Hub and AC manufacturing cluster as part of its broader push to emerge as a major manufacturing destination.