Air-conditioning solutions provider Carrier has entered into a joint venture agreement with China-based GD Midea Holding for manufacturing and distributing air-conditioning systems in India.
Amarchand Mangaldas advised Carrier with a team led by Partner Harry Chawla along with Principal Associate Niti Paul and Senior Associate Vishwanath Pratap Singh.
Midea was represented by its in-house team.
According to ET, the joint venture will invest up to Rs. 500 crore in the next 5-6 years on new product development and setting new manufacturing facility in India.
Under the deal, GD Midea will hold 60 percent stake in the JV and Carrier will own 40 per cent stake through their respective affiliated entities. The JV will primarily manufacture and distribute residential air-conditioning systems and bring together Carrier and Midea’s complementary residential segment operations in India, while significantly expanding manufacturing scale and product portfolio, reports VCCircle.
Carrier is part of UTC Climate, Controls & Security Systems, engaged in the manufacture and distribution of heating, ventilating, air-conditioning, refrigeration, chiller and food service equipment. The company was founded in 1915 and is based in Farmington, Connecticut. Carrier operates as a subsidiary of United Technologies Corp.
In December last year, Carrier acquired Sauter Race Technologies, a building automation and management systems firm.
Incorporated in 1968, GD Midea manufactures and sells heating and air-conditioning systems, home appliances, lighting systems, motors, compressors and other industrial components in China and also in global markets.