Tamil Nadu has so far wooed investments worth ₹2.6 lakh crore by signing 227 MoUs since May 2021 when the new DMK government took charge under chief minister M.K. Stalin.

Out of the total MoUs signed, 80% of the MoUs have either confirmed their investment or have started work in the state, State Industries Minister T.R.B. Raaja tells Fortune India.

The government has planned global investors meeting in January 2024. “We plan to concentrate on EV, Green Hydrogen, and Auto investments in the 2024 GIM. At present, we have a greater number of EV companies in the state and after the 2024 GIM we want Tamil Nadu to be the EV capital of the world,” says Rajaa.

“Our aim is to make Tamil Nadu a $1 trillion economy in the next few years. We are confident as these investments will increase the economic growth, and the government’s revenue in the form of GST and VAT will increase considerably as a consequence,” said Rajaa.

The two previous GIM held in 2015 and 2019 were not a big success as the first GIM had a maximum number of solar energy investments, which did not take off. The GIM in 2019 was a failure as the Covid lockdown prevented any noteworthy investments.

Among the big ticket investments in TN are by Mitsubishi Electric India, Foxconn, Royal Enfield, Ola, non-leather footwear park, etc. Mitsubishi has laid the foundation to set up a factory to manufacture air conditioners.

“MEI has said that it would invest ₹1,891 crore by way of Foreign Direct Investment (FDI) for setting up its first India facility to manufacture room air conditioners and compressors in Tiruvallur district in the state. It is expected to provide jobs to over 2,000 people. These jobs will be skill jobs and only those who are educated in this type of work will get jobs,” says Rajaa.

Speaking at the foundation function, Kazhuhiko Tamura, Managing Director, MEI, says the company plans to make the Chennai factory a “global hub” by suggesting the facility, besides catering to the local market, will also manufacture ACs and compressors for the export market.

Foxconn, which makes iPhone, has announced plans to expand its plant in Tamil Nadu. It plans to boost the workforce at its plant in southern India to 70,000 by adding 53,000 more workers over the next two years.

Royal Enfield plans to set up a new factory in Tamil Nadu to expand its product portfolio as well as diversify into electric vehicles. “Royal Enfield has already acquired a 60-acre land parcel in Cheyyar, on the outskirts of Chennai. There are plans to invest between Rs 1,000 crore-1,500 crore in the next 12-24 months, depending on the manufacturing capacity,” says a company official.

The new factory will cater to new Royal Enfield internal combustion engine (ICE) motorcycles; a portfolio that’s been expanding steadily. Following the recent launch of the Super Meteor 650 and the alloy wheel-equipped Interceptor/Continental GT 650, the company is gearing up to launch the Shotgun 650 and the highly anticipated Himalayan 450.

It is learned that the company has already commenced work at the Cheyyar plot to ensure a smooth transition to EVs as and when the models are developed and ready for rollout.

When asked about whether all the investments will be in and around Chennai, the Minister says some big investments are also coming up in the south of the state. “In Tuticorin, a big furniture park is being set up. This will be mostly labour-intensive and more people will get jobs. Close to Tuticorin, in Virudhunagar district, a textile park under the Centre’s scheme PMMITRA has been announced,” says the minister.

M.K. Stalin

Tamil Nadu sets sights on being EV capital of the world