Tsugami inaugurates Rs 300 crore assembly plant in Chennai, first Japanese machine-tool foundry in India

CHENNAI: Tsugami Precision Engineering India, whose high-precision CNC machines are widely used by marquee customers such as Apple’s tier-1 suppliers and Boeing, has inaugurated a Rs 300-crore assembly plant and India’s first Japanese machine-tool foundry at the Sipcot Industrial Park, Oragadam, near Chennai.

The investment reinforces Tamil Nadu’s emergence as a key hub for manufacturing the next generation of smartphones, electronics and aerospace components. The Chennai facility, Tsugami’s third global unit after Japan and China, would boost the supply chain ecosystem.

The 300,000 sq ft facility, spread over 15 acres, was inaugurated virtually by state industry secretary Arun Roy, who said Japanese companies continue to show confidence in Tamil Nadu’s skilled workforce, infrastructure and business-friendly policies. The new unit will employ 700 professionals and another 300 indirect roles.

Tsugami India, a joint venture between Japan’s Tsugami Corporation and the Chennai-based Proteck Machinery, is among India’s leading CNC machine-tool manufacturers since its inception in 2013. With this expansion, annual capacity will scale to 3,000 CNC machines, backed by a 6,000-tonne annual foundry capacity. The Proteck facility in Oragadam will continue during the transition, supporting phased migration.

“This marks the largest investment by a Japanese machine-tool maker in India,” said S Balasubramanian, founder of Proteck and chairman-MD, who played a key role in bringing Tsugami to India in 2009. The move was driven by the belief that India would follow China on precision manufacturing capabilities.

India’s CNC machine market is estimated at Rs 18,000 to 20,000 crore, and its import dependence is reducing steadily as local manufacturing gains scale. More than 90 per cent of Tsugami India’s components are localised, except CNC controller systems sourced from Siemens, Fanuc and Mitsubishi, he sought to point out.

Globally, the metal-cutting machine-tool market is valued at $35 to $40 billion, within a $120-billion broader industry. The Tokyo-listed Tsugami is a $700-million global major, commanding roughly 40 per cent share in the high-precision sub-segment.

Tsugami machines serve a diversified customer base including automotive, medical devices, industrials, electronics and aerospace each contributing 12 to 15 per cent. With Apple expanding production near Chennai, the electronics segment alone could rise to 30 to 40 per cent of demand, he said. Its equipment is also used by suppliers to Boeing and Airbus within the fast-growing aerospace cluster in Sriperumbudur.

Four leading Japanese machine-tool players operate in India, Makino, Mazak, Brother and Tsugami. But Tsugami’s investment is the largest and the only one with a full-scale foundry, underlining its long-term commitment to India.

Key Numbers

Tsugami India Investment: Rs 300 crore

JV partners: Tsugami Corp (Japan), Proteck Machinery (Chennai)

Facility: 3 lakh sq ft on 15 acres, Sipcot Oragadam

Capacity: 3,000 machines/year and 6,000 tonnes castings/year

Employment: 1,000 (700 direct and 300 indirect)

FY25 revenue target: Rs 400 crore

Indigenisation: Over 90%

Major end-users: Apple vendors, Samsung, Boeing, Airbus suppliers

Segments served: Automotive, aerospace, medical, industrial and electronics