Tsugami Opens Major Rs 300-Crore Precision Facility in Chennai

Tsugami deepened its commitment to India today with the launch of a new Rs 300-crore precision engineering assembly and foundry unit in Oragadam, near Chennai.

The move marks the largest investment by a Japanese machine-tool maker in the country and signals a strong push to expand high-precision manufacturing capacity in one of India’s fastest-growing industrial corridors.

The new unit, built by Tsugami India, a joint venture between Tsugami Corporation of Japan and Proteck Machinery India, stands out for another milestone: it is the first foundry in India established by a Japanese machine-tool manufacturer, and only the company’s third globally after Japan and China.

The investment is expected to generate over 1,000 ecosystem jobs and strengthen the technology spine of the Oragadam–Sriperumbudur belt, already a major electronics hub.

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The 15-acre facility inside SIPCOT Industrial Park includes a 300,000-sq-ft plant with the capacity to assemble 3,000 machines a year and cast 6,000 tonnes of components. It will employ 700 professionals directly, with another 300 supporting operations. Japanese officials highlighted the strategic value of the partnership. “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 of JETRO.

Officials from Tamil Nadu noted Japan’s continued role in advancing the state’s manufacturing landscape. Company leaders said the plant will help India scale its precision-engineering ecosystem. According to Proteck’s K Balasubramaniam, the project will create a “snowballing effect” for domestic component and product capability.

The expansion strengthens Tsugami’s move toward greater indigenous production—from raw metal to finished machines—while preserving its strict quality standards. The company, listed on the Tokyo Stock Exchange, closed FY 2025 with global revenues near $700 million.