Tamil Nadu is getting back to its strengths of manufacturing and textiles, besides targeting the emerging electric vehicles segment for new investments. The state is set to sign MoUs for fresh investments of more than Rs 3,500 crore in these sectors in the next few weeks.
The bulk of new investments is in the establishment of free trade warehousing zones (FTWZs) near Chennai. With China hit by US tariffs, manufacturing companies are looking at Vietnam and India for setting up new manufacturing units.
"Given TN's strong presence as a manufacturing hub, the state is poised to attract more such investments, since India also has an added advantage of a large domestic market," sources in the state government told TOI. While Venkatesh COKE will establish an FTWZ at an investment of around Rs 1,500 crore, DP World put up Rs 1,000 crore for its FTWZ.
While MM Forgings is scouting for a suitable location for investing around Rs 500 crore for making auto components, another company, Shreevari Energy Systems, will invest close to Rs 250 crore in a wind turbine manufacturing facility at Tuticorin.
On the textiles and apparels front, PKPN group of mills and Ambika Cotton Mills are investing more than Rs 550 crore for their new facilities in Namakkal and Dindigul respectively. Following the Tamil Nadu government's sector- and country-specific focus for creating zones to attract fresh investments, Japan is fast emerging as a key source of new investments.
While One Hub Chennai, a next-generation industrial township jointly developed by Ascendas-Ireo beyond Tiruporur, has already become a hub for Japanese companies, a new industrial park, Origins, promoted by Sumitomo-Mahindra in north Chennai is set to become the second cluster for Japanese investments.
Japanese conglomerate Yanmar, a leading global manufacturer of diesel engines for a wide variety of sectors including agriculture, is already setting up an engine plant for Rs500 crore at Origins.
"Another Japanese company, Nissei Electric, will soon come on board with an initial investment of Rs80 crore for electrical parts manufacturing," sources said.
Realizing the potential that Japan holds for new investments into Tamil Nadu, the state government to has gone out of its way. While only state-owned Sipcot developed industrial parks hitherto enjoyed 50% stamp duty exemption, for the first time Sumitomo-Mahindra's Origins was accorded that exemption.
"With Tamil Nadu Business Facilitation Act and single window clearance in place, the state has become very proactive in attracting investments," a state government official said.