Indian southern state of Tamil Nadu signs multiple investment deals worth more than $4.4 billion with companies such as Tata Electronics, the suppliers of Apple (AAPL.O), Hyundai Motors (005380.KS), and Pegatron (4938.TW).
This news comes along with the market’s assessment that Apple is counting India as the next big driver of growth for the tech company, as it looks to divert some of its production from China. While Pegatron signed the deal to start working on a second facility where, Tata Group had already started assembling iPhones last year.
Tata Electronics, which is a major part of the largest Indian conglomerate, the Tata Group, committed to invest 120.8 billion rupees for mobile assembling operations, as per the Government of Tamil Nadu.
Chief Minister M. K. Stalin at the contract signing event, said that it sought to play a major role in India’s growth “the Tamil Nadu government will support investors in every way possible.” Moreover, Apple’s Taiwan supplier, Pegatron will also be investing an additional amount of 10 billion rupees to expand the production in the region.
In addition to this pact, Tata Power is exploring investments of up to 700 billion rupees in Tamil Nadu over next couple of years, including reinvestment in some of the existing projects, as noted by the CEO and Managing Director Praveer Sinha.
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The Specifics of Deal
The Indian state of Tamil Nadu signs a $4.4 billion deals with major tech and auto companies, including Apple Suppliers and Hyundai Motors at a meeting of global investors, is projected to generate thousands of employment opportunities in the state.
This summit comes just days before another investment summit in the state of Gujarat where hundreds of investors are expected to attend and make deals.
Coming on to the specifics of this deal, it included a 120 billion rupees agreement with JSW Energy to work on renewable energy projects. Moreover, it included an agreement with automaker Hyundai Motors worth 61.80 billion rupees for EVs and car manufacturing.
Earlier on Saturday, a Vietnamese EV maker VinFast had agreed to build its first manufacturing facility in India and work has further plans of investing up to $2 billion in Tamil Nadu, as various other companies are seeking opportunity to penetrate in the world’s third-largest vehicle market.
Additionally, Nike’s shoe maker Hong Fu is also set to sign a deal with the state government to invest nearly 10.4 billion rupees in India, with another 16.6 billion expected to come soon.
($1=83.1030 Indian rupees)
