The Tamil Nadu government on Tuesday signed memoranda of understandings (MoUs) worth around Rs 7,850 crore with various companies including Hinduja Group’s flagship company Ashok Leyland, Nissan, Yamaha, Daimler and Royal Enfield.
As per the MoUs signed on Tuesday, Ashok Leyland and Nissan Motor Company will invest Rs 4,150 crore in Hosur, Pillaipakkam, Ennore, Vellivavayssavadi and Oragadam. R Seshasayee, executive vice-chairman of the company, along with Yuuji Tsukagoshi, chairman, were present on the occasion.
Daimler India Commercial Vehicle Private Limited also signed an agreement with the Tamil Nadu government to increase the investment in its plant in Oragadam to Rs 4,000 crore.
It may be noted that Tamil Nadu chief minister J Jayalalithaa has inaugurated the commercial vehicle plant of Daimler India at Oragadam near Chennai on April 18. The company had so far invested about Rs 2,500 crore, according to the state industries department.
The other major investment committed was Rs 1500 crore by India Yamaha Motor Private Limited, a part of Japanese two-wheeler major Yamaha Motor Co Limited, for a green-field facility to manufacture two-wheelers. The investment will spread over five years at Vallam Vadagal on the outskirts of Chennai.
Phase-I of the plant is expected to commence operations by January 2014. Initially, the production capacity will be 400,000 units, which will eventually reach 1.8 million units annually by 2018. The plant will employ around 6,500 people by then.
“This facility will be the largest factory in Asia for the company,” said Roy Kurian, national business head (sales) India Yamaha Motor. The first product to be rolled out from the factory will be Yamaha’s Ray scooter.
Hiroyuki Suzuki, chief executive officer and managing director, India Yamaha Motor, said, “South has a good supplier base. Besides, catering to the export markets from Tamil Nadu will be easy. These are the two main reasons why we chose Tamil Nadu over other states.”
The other two investments, for which MoUs were signed on Tuesday include Rs 350 crore by Eicher Motors for setting up a two-wheeler factory at Oragadam for Royal Enfield and another Rs 350 crore by Philips Carbon Black Limited for setting up a facility at the State Industries Promotion Corporation of Tamil Nadu (Sipcot)’ industrial part in Thiruvallur district.