Global consumer electronics and home appliance manufacturer Hisense has formally commenced operations at its first manufacturing facility in India, located within the integrated industrial township of Sri City in Andhra Pradesh. The development marks a significant step in the company’s localisation strategy and reinforces India’s growing role in global appliance manufacturing supply chains.
The facility, spread across approximately 10 acres, has been established in partnership with an Indian manufacturing services firm and represents an investment of over USD 30 million. Initial production will focus on room air conditioners, with commercial output expected to scale up during 2026. Industry officials indicate that additional product lines, including washing machines and televisions, are planned in subsequent phases.Sri City’s emergence as a preferred manufacturing destination reflects a broader realignment underway in India’s industrial geography. With its proximity to ports, integrated logistics infrastructure and access to skilled labour, the township has attracted a growing cluster of electronics and white-goods manufacturers seeking to reduce import dependence and improve supply-chain resilience. Urban economists note that such clusters can accelerate regional development when aligned with sustainable planning and workforce integration.
For Hisense, local manufacturing allows closer alignment with Indian market requirements, particularly in energy-intensive appliances such as air conditioners. Analysts point out that domestic production can shorten delivery timelines, lower transportation emissions and enable faster adaptation to efficiency standards and climate-specific design needs — an increasingly important factor as Indian cities experience rising temperatures and electricity demand.The plant is expected to generate more than 1,500 direct and indirect employment opportunities across manufacturing, quality control, logistics and ancillary services. Regional development experts stress that the long-term impact of such investments will depend on skill development, stable vendor ecosystems and inclusive hiring practices that integrate surrounding communities into industrial growth.
From an urban sustainability perspective, the facility also highlights the environmental trade-offs associated with large-scale manufacturing. While local production can reduce carbon intensity linked to imports, experts emphasise the need for clean energy sourcing, water-efficient operations and responsible waste management within industrial zones. Sri City’s planning framework, which integrates industrial, residential and social infrastructure, is often cited as a model that can support such outcomes if implemented rigorously.India’s consumer appliance market continues to expand alongside rapid urbanisation and housing growth, particularly in Tier-II and Tier-III cities. As households upgrade cooling and home electronics, manufacturers with domestic production capacity are better positioned to respond to demand volatility and regulatory changes.
With Hisense now operational in Andhra Pradesh, policymakers and industry observers will closely track how global manufacturers adapt their India strategies beyond assembly toward deeper value-chain integration. The Sri City facility could serve as a test case for how international brands align commercial objectives with India’s push for resilient, employment-generating and climate-conscious industrial development.
