CHENNAI: In a bid to deepen India’s precision-engineering supply chain – including components used in Apple’s iPhone – Japanese machine-tool maker Tsugami has inaugurated a large-scale assembly plant and foundry on the outskirts of Chennai.
The Rs 300-crore facility was inaugurated by Kaoru Shiraishi, Director General of JETRO, in the virtual presence of Tamil Nadu’s Industries Secretary Arun Roy.
Located in SIPCOT Oragadam, the 300,000 sq ft plant sits on 15 acres and includes Tsugami’s first foundry in India and only its third worldwide after Japan and China. Designed to produce 3,000 machines and 6,000 tonnes of castings annually, the complex is expected to generate more than 1,000 jobs across the ecosystem, including 700 direct positions.
The facility, aimed at supplying local vendors such as Foxconn or other mobile phone manufacturers as well as aerospace and medical-device manufacturers, reflects the company’s push to tap into Tamil Nadu’s skilled precision-engineering workforce at a time when labour shortages and rising manufacturing costs are squeezing Japan’s machine-tool sector.
“The lack of skilled workforce in precision engineering and the rising cost of manufacturing in Japan have created challenges for machine-tool makers. Chennai’s skilled industrial workforce was a decisive factor,” said K Balasubramaniam, founder of Tsugami India and chairman and managing director of Proteck Machinery India, the company’s joint-venture partner.
By building a high precision machinery supply base in Chennai where Foxconn, Pegatron and Tata electronics operate, Tsugami’s expansion would strengthen the local ecosystem that supports iPhone assembly.
Arun Roy said the project strengthens Japan’s long-standing industrial presence in the state. “Japanese companies have consistently shown confidence in Tamil Nadu’s talent and business environment. This facility will create substantial employment and expand opportunities for local suppliers,” he added.
Kaoru Shiraishi said, “This facility illustrates the long-standing partnership built on trust and innovation between Japan and India. Combining Japanese technology with India’s market strength creates immense value. We believe this will become a model of excellence.”
The facility will enable end-to-end manufacturing – “from bare metal to finished machines” –enhancing localised production and reducing import dependence, said Balasubramaniam. The new capacity is also expected to support Tsugami’s global quality standards while scaling output for domestic and international markets.
Tsugami had long relied on Proteck Machinery India – its local partner since 1998 – to assemble its machines at a nearby facility. That work will now move in full to Tsugami’s new Chennai complex, marking a complete transition of assembly operations, said Balasubramanian.
The investment marks one of the most significant expansions by a Japanese machine-tool maker in India and reinforces Tamil Nadu’s position as a high-precision manufacturing hub.
