Japanese machine-tool major Tsugami has taken a decisive step to deepen India’s precision manufacturing ecosystem with the inauguration of a ₹300-crore assembly plant and foundry in Chennai’s SIPCOT Oragadam. The new 300,000 sq ft complex spans 15 acres and represents one of the most significant expansions by a Japanese machine-tool maker in India. It positions Tamil Nadu as a critical node in the global supply chain for high-precision components, including those used in Apple’s iPhone.
A Strategic Move to Tap India’s Skilled Precision Workforce
The facility was inaugurated by Kaoru Shiraishi, Director General of JETRO, with Tamil Nadu Industries Secretary Arun Roy joining virtually. The plant marks Tsugami’s first foundry in India and only its third worldwide after Japan and China, underscoring the strategic importance of the Indian market.
Designed to produce 3,000 advanced machines and 6,000 tonnes of castings annually, the complex is expected to create over 1,000 ecosystem jobs, including 700 direct positions. Tsugami’s expansion aligns with rising global demand for high-precision components and reflects Japan’s growing reliance on India’s skilled industrial workforce amid domestic labour shortages and rising manufacturing costs.
“Chennai’s skilled workforce was a decisive factor,” said K. Balasubramaniam, Founder of Tsugami India and Chairman & MD of Proteck Machinery India, Tsugami’s long-time joint-venture partner.
Strengthening the iPhone Manufacturing Ecosystem
With Foxconn, Pegatron and Tata Electronics already anchoring the electronics manufacturing landscape in Tamil Nadu, Tsugami’s new plant strengthens the precision-machinery supply base required for iPhone assembly and other high-value sectors.
The plant enables end-to-end manufacturing “from bare metal to finished machines,” sharply reducing import dependence, improving lead times, and elevating local value creation. Tamil Nadu officials emphasised that the facility further validates the state’s reputation as one of India’s most advanced manufacturing hubs.
“This reflects the deep confidence Japanese companies have in Tamil Nadu’s talent and business environment,” Arun Roy stated.
A Milestone in India–Japan Industrial Collaboration
Kaoru Shiraishi described the facility as a symbol of the “long-standing partnership built on trust and innovation” between Japan and India. Combining Japanese engineering with India’s manufacturing scale is expected to create competitive advantages for global supply chains.
The new capacity will support sectors such as aerospace, automotive, industrial machinery and medical devices, all of which demand high-precision capabilities. Tsugami previously relied on Proteck’s assembly operations nearby, but the new plant represents a full transition of assembly to Tsugami’s direct control.
Enabling India’s Rise as a Precision Manufacturing Hub
Tsugami’s investment stands out as one of the most ambitious in India’s precision-engineering sector in recent years. It complements the state’s strategy to expand advanced manufacturing clusters and strengthens India’s position in global value chains. As labour shortages continue to pressure Japanese manufacturers, India’s combination of talent, infrastructure and market opportunity makes it a natural destination for long-term expansion.
