Japanese medical devices major Omron to set up mfg unit in Tamil Nadu

Stalin's visit to Japan brings in investments worth Rs 1,300 crore

In a sign that Japanese companies are increasingly showing interest in Tamil Nadu, Kyoto-based Omron Healthcare, one of the world’s largest players in the medical devices segment, with expertise in health monitoring and therapy, plans to set up its first manufacturing unit in Tamil Nadu. The plant is scheduled to come up at Origins by Mahindra at Peruvoyal Village in Gummidipoondi Taluk of Thiruvallur district.

During the past one week, the state has seen investment plans to the extent of Rs 1,300 crore, amid chief minister M K Stalin's visit to the island nation. Till Monday, MoUs for investments worth Rs 819 crore were signed with six Japanese companies during Stalin’s ongoing visit. Omron’s plans in in the state are likely to be worth Rs 120-130 crore, said a source, requesting anonymity. A deal is likely to be signed today. The firm is likely to manufacture all products in its portfolio at the Tamil Nadu unit, including blood pressure monitors. The state is expecting to attract other companies in the segment too, to create an entire medical technology ecosystem.

The new deal will boost the investment ecosystem in the state, which saw massive announcements from players such as Hyundai Motor in May--the firm had lined up a plan to invest Rs 20,000 crore over the next 10 years. The plan is to increase production volumes and introduce new EV models. On May 9, Japan’s Mitsubishi Electric Corporation too signed an agreement with Tamil Nadu to set up a Rs 1,895-crore unit, marking a rare instance of 100 per cent foreign direct investment (FDI) in electronic equipment manufacturing in India. It will be Mitsubishi Electric’s first air-conditioner and compressor manufacturing facility in India. The unit will also be at Origins.

Origins is located on NH16 (part of the Golden Quadrilateral). It is also within the influence zone of the Chennai–Bengaluru Industrial Corridor (CBIC) and Chennai–Vizag Industrial Corridor (CVIC) near Ponneri. It is also close to the three major ports in Chennai (Chennai Port, Ennore Port and Kattupalli Port) and has excellent connectivity to the city business district.

“The Mitsubishi deal has led to a flurry of investments from Japanese firms. In Medtech also, we want to create an entire ecosystem with the entry of a major player like Omron,” said a source close to the development.

In February, the SoftBank-backed Ola Electric Mobility had signed an MoU with the Tamil Nadu government to set up a four-wheeler electric vehicle plant and a 20 giga watt battery unit in Krishnagiri district, at an investment of around Rs 7,614 crore creating 3,111 jobs.  

In April, the world’s largest branded athletic and casual footwear manufacturer, Taiwan-based Pou Chen Corporation (Pou Chen), signed a deal with the state to put up a Rs 2,302-crore unit, while at least six other global majors are in the process of setting up their plants in Tamil Nadu.