Tsugami launches ₹300 cr Chennai plant, boosting precision engineering

Tsugami has inaugurated a Rs 300-crore assembly and foundry unit near Chennai-its largest machine-tool investment in India-boosting local jobs and strengthening high-precision manufacturing

Tsugami, one of the world’s leading precision engineering machine-tool companies, took its long-term commitment to India to the next level on Thursday with the inauguration of its Rs 300-crore precision engineering assembly and foundry unit at Oragadam on the outskirts of Chennai.

 

How significant is this investment for Tsugami and India? 

Tsugami India — a joint venture between Tsugami Corporation, Japan, and Proteck Machinery India — said the Rs 300-crore investment is the largest ever by a Japanese machine-tool maker in India. This is also the first foundry in India by a Japanese machine-tool manufacturer, and Tsugami’s third globally after Japan and China. The unit is expected to generate over 1,000 ecosystem jobs and act as a technology enabler in the Oragadam–Sriperumbudur belt, already a major electronics manufacturing hub.

 

What is the scale and capacity of the new facility? 

The assembly unit has an annual capacity of 3,000 machines, while the foundry has an installed annual capacity of 6,000 tonnes. Spread across 15 acres at SIPCOT Industrial Park, Oragadam, the 300,000-sq-ft facility will directly employ 700 professionals, with another 300 required to support operations.

 

What did Japanese officials say about the collaboration? 

“Today’s inauguration is yet another excellent example of the long-standing relationship built on trust, innovation and mutual respect between Japan and India,” said Kaoru Shiraishi, director general, Japan External Trade Organization (JETRO). He said the facility reflects Tsugami’s commitment to India’s development, job creation and industrial capability building.

 

Arun Roy, IAS, secretary–industries, Tamil Nadu, said Japan has long been one of the state’s most trusted partners in advanced manufacturing and that the inauguration reaffirms this confidence.

 

How will the new plant support India’s precision manufacturing ecosystem? 

K Balasubramaniam, founder, Tsugami India, and chairman and managing director, Proteck Machinery India, said the facility is a major step-up for high-precision manufacturing in India. Tsugami’s global reputation in precision engineering, he said, will create a “snowballing effect” for domestic capability in component and product manufacturing. Chennai and Tamil Nadu were chosen due to the availability of highly skilled industrial talent, he added.

 

What does the expansion enable for Tsugami’s India operations? 

The new infrastructure allows increased indigenous production of Tsugami machine tools — from raw metal to finished machines — while maintaining the company’s stringent quality standards. The expansion also enables in-house manufacturing and greater scalability.

 

How is Tsugami positioned globally? 

Tsugami is listed on the Tokyo Stock Exchange, among others. It closed FY ending March 31, 2025, with global revenues of close to $700 million, making it one of the most successful and profitable machine-tool companies worldwide.