🤑 It doesn’t get more affordable. Grab this 60% OFF Black Friday offer before it disappears…CLAIM SALE

India's Tamil Nadu in $4.4 billion deals with investors such as Tata, Pegatron

Published 08/01/2024, 01:21 am
Updated 08/01/2024, 01:30 am
© Reuters. Employee buses enter the Pegatron facility near Chennai, India, March 7, 2023. REUTERS/Praveen Paramasivam/File Photo
AAPL
-
NKE
-

By Praveen Paramasivam

CHENNAI (Reuters) -India's southern state of Tamil Nadu has signed investment pacts worth more than $4.39 billion with firms such as Apple (NASDAQ:AAPL) suppliers Tata Electronics and Pegatron, as well as auto major Hyundai Motors, it said on Sunday.

Apple is counting on India as the next big driver of its growth as the tech giant looks to diversify some production away from China, with Pegatron working towards a second factory in the country where Tata Group last year began to assemble iPhones.

Tata Electronics, a part of the Indian conglomerate, committed to invest 120.8 billion rupees for mobile phone assembly operations, the state government said during the signing of the agreements.

"The Tamil Nadu government will support investors in every way possible," Chief Minister M. K. Stalin said at the event, adding that it sought to play a major role in India's growth.

Pegatron, Apple's Taiwan supplier, will also invest 10 billion rupees to expand production, the government added.

Separately, Tata Power is exploring investments up to 700 billion rupees in Tamil Nadu over the next several years,including investments made in some existing projects, its chief executive officer and managing director Praveer Sinha said at a press briefing at the event.

The pacts, unveiled at a meeting of global investors, are projected to generate thousands of jobs in the state.

The state's summit comes days before another investment summit in Prime Minister Narendra Modi's home state Gujarat where hundreds of domestic and foreign investors are expected to attend.

Sunday's deals in Tamil Nadu include an agreement with JSW Energy to invest 120 billion rupees to develop renewable energy projects.

Auto major Hyundai Motors also committed 61.80 billion rupees, some of it earmarked for electric vehicle (EV) battery and car manufacturing, the government added.

On Saturday, Vietnamese EV maker VinFast agreed to set up its first manufacturing facilities in India and work toward an investment of up to $2 billion in Tamil Nadu, as more companies seek to penetrate the world's third-largest vehicle market.

© Reuters. Employee buses enter the Pegatron facility near Chennai, India, March 7, 2023. REUTERS/Praveen Paramasivam/File Photo

Nike (NYSE:NKE) shoemaker Hong Fu is set to sign a pact with the state to invest nearly 10.4 billion rupees in India, with another 16.6 billion rupees expected soon, Aqeel Panaruna, chairman of Florenece Shoe - the company's India partner - said at the event.

($1=83.1030 Indian rupees)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.