Japanese group Yanmar sets up its first diesel engine making unit in India

With a built-up area of 23,708 sq mt, the facility in Chennai has an annual production capacity of 80,000 engines

Japan-based Yanmar Group inaugurated its first diesel engine manufacturing facility in India, at ORIGINS, Chennai an industrial park developed by a joint venture between a subsidiary of Mahindra Lifespace Developers Limited (MLDL) and Sumitomo Corporation of Japan. 

The Yanmar Group facility was today e-inaugurated by Tamil Nadu chief minister Edappadi K Palaniswami. 

With a built-up area of 23,708 sq mt, the unit at ORIGINS has an annual production capacity of 80,000 engines and will cater to domestic and export markets. 

The total planned investment in the facility is of Rs 500 crore by Yanmar Group, Japan.  The new facility will manufacture diesel engines for tractors, construction equipment and generators.

Vaibhav Mittal, Business Head, Mahindra World City & ORIGINS by Mahindra World City at Chennai, said,  the first unit at ORIGINS, Chennai fulfil the Make in India aspirations of Yanmar Group, a global diesel engine manufacturing company from Japan and its anchor customer at ORIGINS, Chennai. 

Varun Khanna, Managing Director, Yanmar Engine Manufacturing India Pvt Ltd, said, “India is a strategic growth market for Yanmar Group and this will be company's first wholly-owned manufacturing set-up in the country. 

Mahindra World City Developers Limited and Sumitomo Corporation have together committed to invest approximately Rs 1,000 crore in developing ORIGINS, Chennai, which is expected to create direct employment for about 7000 persons when fully operational. 

Phase 1 of ORIGINS, Chennai spans around 300 acres and was inaugurated in 2019 with three Japanese customers and all approvals in place.  ORIGINS, Chennai currently has a robust pipeline of companies likely to invest soon.

The Yanmar facility at ORIGINS, Chennai will cater to original equipment manufacturers (OEM) in the Indian construction and agriculture sectors.