Chennai becomes 'Apple Valley': Rs 4.39 billion investment bonanza with Pegatron, Tata

The Tamil Nadu government has successfully finalized investment agreements exceeding Rs 4.39 billion with prominent companies such as Tata Electronics and Pegatron, key suppliers for Apple, along with automotive giant Hyundai Motors. This milestone was achieved on January 7, 2024, during the Tamil Nadu Global Investors Meet 2024 in Chennai.

These strategic pacts, disclosed at a global investors' meeting, are anticipated to foster substantial job creation within the state. The government has pledged comprehensive support to facilitate the success of these investments. Tata Electronics is set to inject Rs 120.8 billion into mobile phone assembly operations, while Pegatron, a crucial Taiwanese partner of Apple, will contribute Rs 10 billion towards expanding production. Apple's push to diversify its production in India aligns with Pegatron's efforts to establish a second factory in the region, complementing Tata Group's ongoing iPhone assembly operations.

Furthermore, Tata Power is actively exploring investments totaling up to Rs 700 billion in the state over the coming years, covering both new and existing projects. In a separate agreement, JSW Energy is committing Rs 120 billion towards the development of renewable energy projects in the state. Hyundai Motors has also pledged Rs 61.80 billion, earmarked partly for the production of electric vehicle (EV) batteries and cars.

A significant development on January 6, 2024, involved Vietnamese EV manufacturer VinFast committing to establish its initial manufacturing facilities in India, with a planned investment of up to USD two billion in the state. Additionally, Hong Fu, the Nike shoemaker, is on the verge of signing an agreement with the state government, aiming to infuse approximately Rs 10.4 billion into India, with an additional Rs 16.6 billion expected in the near future.

News by Rahul Yelligetti