Omron Healthcare Embarks on Indian Expansion with Medical Device Factory in Tamil Nadu

Omron Healthcare, a prominent Japanese medical equipment manufacturer, is preparing to make a substantial investment in Tamil Nadu, a state located in south India. This plan is part of a series of Memoranda of Understanding (MoUs) signed between Tamil Nadu's investment facilitation agency, Guidance Tamil Nadu, and both Japanese and Indian stakeholders. These agreements were finalized during the official visit of Tamil Nadu's Chief Minister, MK Stalin, to Japan. The investment from Omron Healthcare and other Japanese companies demonstrates Tamil Nadu's appeal as a destination for Japanese manufacturing firms, particularly those in the medical device sector.

During his visit to Tokyo on May 30, Chief Minister MK Stalin oversaw the signing of an MoU between Guidance Tamil Nadu and Omron Healthcare. Currently, Omron manufactures its healthcare devices in Japan, China, and Vietnam. Additionally, Guidance Tamil Nadu signed six MoUs with Japanese companies and their Indian joint venture partners, totaling a value of around INR 8.20 billion (approximately US$99 million). These agreements were established during an investors conclave organized by the Japanese External Trade Organization (JETRO).

The MoUs signed include partnerships between Guidance Tamil Nadu and Chennai-based Polyhouse Group, along with its three Japanese joint venture partners: Kohyei, Sato-Shoji Metal Works, and Tofle. The aim of this collaboration is to expand existing operations near Chennai and increase the production of various products. The investment of INR 5.5 billion will facilitate the manufacturing of polycarbonate sheets, roofs, and extrusion lines for electronic components used in the construction industry, high-end steel parts for the aerospace and defense sectors, as well as specialized flexible hoses made from stainless steel.

Another MoU was signed between Guidance Tamil Nadu and Kyokuto Satrac, which involves establishing a factory in Mambakkam Sipcot, Sriperumbudur, Kancheepuram district, for the manufacturing of spare truck parts. Additionally, Guidance Tamil Nadu and Mitsuba agreed to expand the existing plant operations in Gummidipoondi Sipcot, Tiruvallur district, to produce spare parts for two-wheelers and four-wheelers. Furthermore, an MoU was signed between Guidance Tamil Nadu and Shimizu Corporation for investment in the construction sector.

Prior to the investors' conclave, Guidance Tamil Nadu had signed an MoU with Daicel Safety Systems in Osaka on May 26. Daicel will expand its plant in Chennai to manufacture airbag inflators.

Omron Healthcare's investment in Tamil Nadu involves the establishment of its first medical device factory in the southern state. The facility will focus on producing low-frequency pain therapy equipment and body composition monitors. Omron aims to capitalize on the growing demand for medical devices in India, driven by factors such as an aging population and changing lifestyle patterns. The company plans to invest INR 1.28 billion (approximately US$15.7 million) in setting up the factory, which will be located at Origins by Mahindra, a large industrial cluster spanning around 600 acres in Peruvoyal Village, Gummidipoondi Taluk, Thiruvallur district. The cluster aims to attract global companies across various sectors, including automotive, aerospace and defense, engineering, electronics, logistics, and medical devices.

The Tamil Nadu government anticipates further investments in the medical technology sector. Tamil Nadu is currently the fourth largest medical device manufacturing state in India, and it boasts the country's second largest electronics manufacturing hub. This electronics hub plays a crucial role in the emerging MedTech sector. Tamil Nadu competes with neighboring states such as Telangana and Karnataka, as well as Gujarat, Maharashtra, and Haryana, for investments in the medical device domain. All of these states, including Tamil Nadu, host medical device clusters.