The announcement of Jindal Advanced Materials (JAM), an arm of the Jindal Group of Companies, to set up a manufacturing plant in Tiruchi, is seen as a positive development to change the industrial profile of Tiruchi.
JAM signed a Memorandum of Understanding (MoU) with the State government at the recent Global Investors’ Meet to set up a new manufacturing plant, its first such facility in South India, with an investment of about ₹1,000 crore.
A statement, which was released after the MoU, said the facility would be spread over an area of 250 acres of land and generate 3,000 jobs. It will produce “innovative composite materials” at the plant. It is expected to be operational in seven years in phases. Tiruchi’s proximity to Karaikal port and it being well connected by road and air, availability of qualified engineers and skilled and unskilled labour force are said to have influenced JAM to set up its manufacturing plant in Tiruchi.
The company is yet to finalise the site. Its officials are reported be in touch with the Tamil Nadu Industrial Development Corporation (TIIC) seeking guidance in identifying land.
Though Tiruchi has Bharat Heavy Electricals Ltd. plant and the Heavy Alloy Penetrator Projection Plant and several micro, small and medium enterprises (MSMEs), it does not have many major industry. Despite being well placed in terms of infrastructure, no major private player had come forward to set up plants in the district.
It was with the view of encouraging entrepreneurs to scale up their contribution to domestic defence production that the then Defence Minister Nirmala Sitharaman launched the Tamil Nadu Industrial Defence Corridor Project in Tiruchi in 2019. Taking into account the contribution of MSMEs in supplying components for defence weaponry, the Centre had included Tiruchi along with Chennai, Salem, Coimbatore, and Hosur in the defence corridor. Even four years after the announcement, no company had shown any inclination to start industrial units in Tiruchi.
If the JAM sets up its plant, it will be the first major private sector manufacturing plant in Tiruchi. Industrialists and entrepreneurs are of the view that it may change the industrial profile of the district.
“It will certainly boost the industrial climate of Tiruchi. It will be a game changer. If one major player establishes its footprint, others will take a cue in bringing more investments,” says N.P. Sugumar, Managing Director, Acoustic India Pvt. Ltd.
N. Kanagasabapathy, former president of Tiruchi District Tiny and Small Scale Industries Association, said it might augur well for improving the industrial climate in the region. If a big-ticket company establishes its plant, it opens up avenues for sub contracts. It would support the MSMEs of the region.
