Tsugami Announces ₹300-Crore Investment to Scale CNC Production in Tamil Nadu

Tamil Nadu’s state government and Japanese industry on Monday underscored that Tsugami Precision Engineering’s latest factory expansion will play a pivotal role in strengthening the state’s technology ecosystem, supply-chain resilience, and high-skilled employment.

Speaking at the inaugural ceremony of Tsugami Precision Engineering’s newly launched facilities, Arun Roy, IAS, Secretary – Industries, Government of Tamil Nadu, highlighted that the expansion and marked the commissioning of two new high-precision CNC machining factories, further deepening the company’s footprint in the state.

The state government representative said the investment aligns with the Hon’ble Chief Minister’s mission to transform Tamil Nadu into a one-trillion-dollar economy, with a focus on improving the manufacturing sector’s contribution to the state’s GDP. He noted that the factory “reflects the core values of Japanese industry i.e., precision, discipline, innovation, and an unwavering commitment to excellence,” and added that these would elevate Tamil Nadu’s manufacturing standards across automotive, electronics, and engineering segments.

He stressed that the technology and global processes embedded in Tsugami’s new facility would create substantial opportunities for MSMEs, local suppliers, and engineers, enabling them to integrate with sophisticated supply chains. Additionally, he highlighted that the expansion would generate large-scale employment, using the state’s highly skilled and adaptable workforce. “Collaborations between Japanese expertise and Tamil Nadu’s talent pool will set new benchmarks for quality and productivity,” he said.

The official further pointed out the government’s commitment to inclusive industrial growth, citing targeted skill-development programs, subsidies for local businesses, and incentives aimed at improving employment for women and marginalized communities. “We assure Tsugami of our unwavering support as we grow, innovate, and expand together,” he added.

Representing Japanese industry, Toshihiro Serikawa, a senior JETRO official said the expansion was “remarkable and timely,” especially as global businesses restructure their supply chains due to geopolitical uncertainties following the pandemic, the Russia-Ukraine conflict, and shifting US trade policies. He noted that companies worldwide are diversifying manufacturing locations to reduce risk, with India and Tamil Nadu in particular emerging as a preferred destination.

He pointed to Apple’s relocation of significant production operations to the state as an example of this global shift. “Given these circumstances, Tsugami’s expansion to produce high-precision CNC machines is crucial. It will directly support India’s growing ecosystem for precision components and electronics manufacturing,” he said.

Similarly, he commended Tsugami’s staff for their effort in executing the project, stressing that “every task, however small, multiplies impact and a hallmark of Japanese technology advancement.” He asserted that the expansion would further strengthen the Japan–India Special Strategic Partnership, with JETRO continuing to support deeper collaboration between Japanese and Tamil Nadu-based companies.