CHENNAI: Tamil Nadu has secured a proposed Rs 2,000 crore global manufacturing investment from Brazilian electrical equipment manufacturer WEG, which chose Dharmapuri over Andhra Pradesh for its project, expected to generate 3,000 jobs in the backward district, Industries Department sources said.
The investment marks the second major announcement by the state Industries Department in consecutive days, amid claims that industrial investments are shifting from Tamil Nadu to neighbouring Andhra Pradesh. WEG's decision is being seen as a significant win for the state as it competes with neighbouring states to attract fresh manufacturing capacity.
The investment follows several rounds of discussions between WEG and the state Industries Department, including Industries Minister S Keerthana, sources told the TNIE. Andhra Pradesh had also made efforts to secure the project, pitching Kuppam as a potential location.
On Wednesday, Tamil Nadu received Letters of Intent (LoIs) from South Korean automotive component suppliers Hwashin and Seoyon, which supply Hyundai and Kia. The two companies have proposed a combined investment of Rs 1,370 crore in the state over the next five years, with memorandums of understanding expected to be signed shortly.
The WEG project is part of Tamil Nadu's efforts to attract major industrial investments beyond its established manufacturing centres.
The investment discussions began in July, when WEG representatives met the leadership of Guidance Tamil Nadu, the state's investment promotion agency, on July 6. The company was subsequently given a customised presentation on Tamil Nadu's manufacturing ecosystem and industrial capabilities, followed by a site visit on July 21, Industries department sources said.
Further discussions were held with the Additional Chief Secretary, Industries, S Vijaykumar on August 18. The final round of engagement took place in Bengaluru on October 16, when Keerthana met WEG's leadership. The company subsequently confirmed its preference for Tamil Nadu, sources added.
Beyond the investment size, the proposed location is significant for Dharmapuri, a district that has not traditionally been among Tamil Nadu's major manufacturing centres highlighting the state's keenness for equitable growth, sources said. The project could create a sizeable employment base and expand the state's industrial footprint into relatively less industrialised regions.
The development also underlines the state's efforts to compete for investments through sustained engagement with prospective investors, while directing a greater share of industrial development towards districts outside the Chennai-Coimbatore-Hosur manufacturing belt.
