Prime Highlight
- Mitsubishi Electric plans to increase locally sourced components for its Pune factory automation systems plant to 40–50% within the next five years.
- Company leaders emphasize India’s strong engineering talent and growing importance as a major global manufacturing hub.
Key Facts
- Currently, about 80% of the plant’s components are imported, and production capacity is expected to rise from 45% to 75–80% by 2027.
- Exports from the Pune facility will only begin once utilisation reaches the targeted level, with distribution planned for global markets.
Background
Mitsubishi Electric will double the use of locally made components in its Pune factory automation systems (FAS) plant over the next five years. The company aims to raise local sourcing to 40–50% as part of its broader strategy to position India as a major global manufacturing base.
In 2023, the Japanese multinational opened its advanced automation facility in the Talegaon Industrial Area. According to Takayuki Tsuzuki, executive officer and group president for FAS at Mitsubishi Electric Corporation, the company sees India as a strong engineering hub. During his visit to India, he said, ‘We view India as a key manufacturing hub for the future. With its strong engineering talent, it makes sense to localize more production here.’
At present, nearly 80% of components used in the Pune plant are imported. S. Sriram, Director and Head of the Factory Automation & Industrial Division at Mitsubishi Electric India, said the company wants to change this as it expands local operations. “We plan to source almost 40–50% of our supply from our local manufacturing unit over the next four to five years, which means we will need to expand our production capabilities,” he said.
The Pune plant currently operates at about 45% capacity. Production began in December 2023, and more products are set to be added. The company expects utilisation to reach 75–80% by 2027. Only after hitting this mark will Mitsubishi consider exporting from the facility. Sriram noted that future exports would be planned for global distribution, not just neighbouring markets.
The plant manufactures inverters and automation products used in industries such as data centers, food and beverage, textiles, pharmaceuticals, and automotive. Factory automation is Mitsubishi Electric’s second-largest business in India, after air conditioners, and the company aims to deepen its presence through local manufacturing and supply-chain expansion.
