Jul. 9 – Japanese tech company, Toshiba, has agreed to a joint venture deal with JSW Group to build a US$160 million power equipment manufacturing plant in the country’s southern Chennai City, Tamil Nadu within five years.
The JSW Group is under the O. P. Jindal Group and manages businesses in steel, energy, mining, aluminum, infrastructure, cement and IT. The JV will be majority owned by Toshiba at 75 percent while the JSW Group holds 25 percent.
It will be Toshiba’s second manufacturing facility and will enforce the company’s strategy to further develop its power systems business where it is already one of the top makers of steam turbines and generators in the world.
Plant construction will begin this month and by January next year it will already be making steam turbines and generators. The plant will be built in in North Chennai over 40,000 square meters and by 2015 will forecast sales of US$400 million.
The province Tamil Nadu has been successfully attracting multi-national corporations over the years namely Dell,Hyundai, Samsung, Nokia and BMW. Prior to the Toshiba deal, Nissan announced last year that it would build a car plant near its capital city of Chennai.
Tamil Nadu borders Kerala, Karnataka, Pondicherry and Andhra Pradesh. It is one of the most urbanized states in the country with a high concentration of businesses enterprises as well as having a high literacy rate.
