Fedders Corporation, in an announcement made from its headquarters in Liberty Corner in New Jersey, said that its international division, Fedders International, has obtained approval from the Indian Foreign Investment Board (IFIB) to set up the facility.

The company said the growing market for room air-conditioners in India is estimated to be 400,000 at present and its is expected to grow to 1,000,000 units by 2002. "The facility will be set up in Silvasa (in Dadra and Nagar Haveli) and our initial investment will be under $10 million or so," Judy Katz, vice-president, Communications, said.

Katz would not say when exactly production will start but she indicated it might be sometime next year. "We would like to see some production by 2000," she said.

The company, she said, has not finalised whether to build thefacility in Silvasa or to acquire it. "We have not decided on that as yet," she said.Commenting on the project, Gary Nahai, president of Fedders International, said Fedders' expansion in India is the next step in actualising the company's globalisation strategy.

"With manufacturing already in place in China and Spain, this operation will provide a base for supplying room air-conditioners, the fastest-growing category of consumer durables in India, to Indian consumers, who, for the most part, live in extremely hot conditions the year round as well as for export," he said.