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Tamil Nadu has secured investment commitments worth Rs 12,300 crore during Chief Minister C Joseph Vijay’s first official visit to the United Kingdom. The agreements signed in London on Monday, September 14, cover advanced manufacturing, electrical and electronic equipment, and global capability centres. The projects are expected to create around 10,000 jobs in the state.
The largest commitment came from Samvardhana Motherson International Limited and its European and UK-based joint venture companies, which signed an MoU for an investment of approximately Rs 11,000 crore.
The investment is expected to generate around 7,000 jobs across design, engineering, manufacturing, assembly and logistics facilities. The MoU was exchanged by Barrie Painter, global head of marketing and communications at Samvardhana Motherson International Group, and Deepak Jacob, managing director of Guidance Tamil Nadu.
An additional Rs 1,000 crore investment is expected from an MoU with UK-headquartered Ernst & Young for establishing a Global Capability Centre in Chennai. The centre, proposed on Mount-Poonamallee Road, is expected to create more than 2,000 high-value jobs.
Sweden-based Sigma Technology Group has also agreed to expand its existing GCCs in Chennai and Tiruchirappalli through its Indian entity, Zriya Solutions. The expansion is expected to create 600 high-value jobs in embedded systems, electrification and industrial digitalisation.
UK-based Wilson Power Solutions signed another agreement involving an investment of Rs 300 crore in Tiruvallur district. The project is expected to create around 400 jobs and expand the state’s electrical equipment manufacturing capacity.
A European automotive components manufacturer also submitted a Letter of Intent expressing its preference for Tamil Nadu as the location for a proposed Rs 3,000-crore investment in India. The state government has assured the company of support in setting up its operations.
The MoUs are part of Vijay’s first official overseas visit since taking charge as Chief Minister. The state government had said the trip was aimed at attracting investments and strengthening Tamil Nadu’s existing business ties with the UK.
The government is particularly seeking investments in advanced manufacturing, automobiles and electric vehicles, electronics and global capability centres.
The announcements came amid criticism from opposition parties over Vijay travelling to the UK to sign an agreement with Motherson, which is headquartered in India.
AIADMK spokesperson Kovai Sathyan questioned why Vijay had to travel to Britain at taxpayers’ expense for an investment involving an Indian-headquartered company. He pointed out that Motherson was incorporated in India in 1986 and has its corporate office in Noida.
Guidance Tamil Nadu defended the visit, saying the proposed Motherson investment has an international dimension because it involves the company’s global joint-venture network, technical capabilities and international partnerships.
“While Motherson is an Indian-headquartered global company, the proposed investment has a strong international dimension, bringing together its global JV network, technical capabilities and international partnerships to further strengthen Tamil Nadu’s advanced manufacturing ecosystem,” Guidance said.
The DMK also criticised the government’s investment claims and Vijay’s London visit. DMK spokesperson TKS Elangovan alleged that the Chief Minister had gone to London to attend actor Ajith Kumar’s car race, while the TVK dismissed the criticism.
Vijay had attended the Michelin Le Mans Cup race at Silverstone and waved the ceremonial green flag before the race in which Ajith competed. TVK spokesperson Americai V Narayanan defended the interaction, saying meeting a friend during an overseas visit was not improper.
