From Apple to Google Pixel, automobiles to green energy, Tamil Nadu re-emerges as investment hotspot in 2024

CHENNAI: With the news of Google’s Tamil Nadu plans coming in, one thing is clear: the state has emerged as a favourite place for investors, once again. Google is partnering with iPhone manufacturer Foxconn to produce Pixel smartphones while its parent company Alphabet will start manufacturing drones through its subsidiary Wing LLVC, both in Tamil Nadu. Since the beginning of 2024, fortune has been shining on the state, with big-ticket investments flowing in from multinationals like Pegatron, Vinfast, and more, almost all of them inked during the two-day Global Investors Meet (GIM) held in January in Chennai. 

Let’s take a quick look at the major deals from the investors meet which reportedly attracted a total investment of Rs 6.64 lakh crore.

Tata Power

Tata Power Renewable Energy Ltd (TPREL) plans to make investments worth Rs 70,800 crore for renewable energy projects in Tamil Nadu, which would generate around 3,000 green job opportunities. It aims to develop 10 gigawatts (GW) of solar and wind power capacity in the state over the next five to seven years.

First Solar

US-based First Solar has invested USD 700 million (around Rs 58,306 crore) in setting up India’s first integrated solar manufacturing plant in Tamil Nadu with a proposed annual capacity of 3.3 gigawatts (GW). Around 1,000 people would be employed, it said. The plant which was inaugurated in January will produce Series 7 solar PV modules which reportedly have a carbon and water footprint about four times lower than crystalline silicon modules produced in China. Separately, First Solar has also entered into a 15-year Power Purchase Agreement (PPA) with Cleantech Solar, a prominent renewable energy solutions provider under which Cleantech Solar will develop 150 megawatts (MW) of photovoltaic (PV) solar assets and 16.8 MW of wind-generating assets in Tamil Nadu.

Hyundai Motors

Hyundai Motors, a marquee company that set up base in the State years ago, will pump in Rs 6,180 crore on various initiatives in Tamil Nadu, including establishing a hydrogen resource centre. This is in addition to the Rs 20,000 crore it has planned to invest over a period of ten years (2023-2032) to boost its efforts in electric vehicle manufacturing, charging infrastructure and skill development. Hyundai which already has its manufacturing base in Tamil Nadu will also establish a dedicated ‘Hydrogen Valley Innovation Hub,’ with an investment of Rs 180 crore, in association with IIT-Madras.

VinFast

Vietnam-based electric vehicle manufacturer VinFast has earmarked investments of USD 2 billion (Rs 16,000 crore) in Tamil Nadu to set up an electric vehicle and battery manufacturing facility in southern Tamil Nadu. India became the third-largest vehicle market in the world this year, following China and the US. Tamil Nadu is the fifth largest market for passenger vehicles in India.

Tata Electronics

Tata Electronics is set to invest Rs 12,080 crore for mobile phone assembly operations in Tamil Nadu. It will be the third big player to assemble iPhones in Tamil Nadu, which is already home to Taiwan’s Foxconn and Pegatron, which set up major units near Chennai. The state accounts for nearly a third of the country’s total electronic exports.

JSW Energy

JSW Energy, India’s top renewable energy company, has committed to invest Rs 12,000 crore in renewable energy projects. JSW Energy will also expand its existing footprints in Thoothukudi and Tirunelveli districts with an investment of more than USD 1.44 billion.

Tata Motors

Tata Motors will build a new vehicle manufacturing facility on a 500-acre site in Ranipet, Tamil Nadu, at an investment of Rs 9,000 crore. It will be its second plant in southern India and is expected to generate about 5,000 jobs.

Hapag-Lloyd

A top German shipping and container transportation company, Hapag-Lloyd AG will spend Rs 2,500 crore for various projects like cargo terminals and industrial parks in southern coastal areas like Thoothukudi and other parts of Tamil Nadu. The company plans to employ around 1,000 people.

Pegatron

Pegatron, Apple’s Taiwan supplier, has decided to invest Rs 1,000 crore to expand production. It already has an iPhone manufacturing facility near Chennai and has been building a new plant in Chennai. Recently, there were reports of Pegatron being in talks to hand over the two facilities to the Tata Group.

Edibon

Spain-based Edibon signed an MoU for a Rs 540 crore investment in Tamil Nadu. It is a global benchmark company, with 40 years of experience in teaching equipment for engineering and technical education. The MoU had been exchanged in the presence of Chief Minister MK Stalin in Spain and the company officials on February 5 during his visit to the country to woo investments.

First Solar

US-based First Solar has invested USD 700 million (around Rs 58,306 crore) in setting up India’s first integrated solar manufacturing plant in Tamil Nadu with a proposed annual capacity of 3.3 gigawatts (GW). Around 1,000 people would be employed, it said. The plant which was inaugurated in January will produce Series 7 solar PV modules which reportedly have a carbon and water footprint about four times lower than crystalline silicon modules produced in China. Separately, First Solar has also entered into a 15-year Power Purchase Agreement (PPA) with Cleantech Solar, a prominent renewable energy solutions provider under which Cleantech Solar will develop 150 megawatts (MW) of photovoltaic (PV) solar assets and 16.8 MW of wind-generating assets in Tamil Nadu.

Tata Power

Tata Power Renewable Energy Ltd (TPREL) plans to make investments worth Rs 70,800 crore for renewable energy projects in Tamil Nadu, which would generate around 3,000 green job opportunities. It aims to develop 10 gigawatts (GW) of solar and wind power capacity in the state over the next five to seven years.

Some of the other prominent investments committed to during the GIM include Adani group (Rs 42,768 crore), Singapore’s Sembcorp (Rs 36,238 crore), Coimbatore-based Leap Green Energy (Rs 17,400 crore), CPCL Chennai Petrochemicals Ltd (Rs 17,000 crore), TVS (Rs 5,000 crore), and Saint Gobain (Rs 3,400 crore)

A total of 631 Memorandums of Understanding were signed with an investment commitment of Rs 6,64,180 crore and the creation of direct employment opportunities for 14,54,712 persons and total employment for 26,90,657 persons, a government release had stated.