Chennai News: Villupuram's Industrial Growth Driven by Strategic Location and Investments

Villupuram is emerging as a dark horse on the state’s industrial landscape. From food processing to pharma, non-leather footwear, and plywood manufacturing, industries are betting on the district’s strategic location that eases access to markets in southern states and Goa.

Besides, its sprawling green belt and accessible coastline provide opportunities for making value-added agro products. The district is competing in the services sector as well with Tamil Nadu’s first Tidel Neo (mini-Tidel Park) inaugurated at Thiruchitrambalam, near Puducherry, in Feb this year.

This is a tectonic shift since the district had little connect with industry till 2020. Since then, Tindivanam has proved the gateway for industry to enter the district.

FMCG major Dabur India is breaking ground for its first factory in south India at Tindivanam by the end of 2024. The greenfield unit at Sipcot industrial park will make a range of products, including toothpaste, honey, and air fresheners, for the southern market. It will have a production capacity of around 11,000 tonnes per annum in the first phase. Food and fruit juices will follow in the next phase.

Production will begin in fiscal 2025-26, says Rahul Awasthi, global head of operations, Dabur India. “We have outlined an approved phase-1 investment of 135 crore, which will be scaled up to 400 crore over five years. This is expected to generate direct employment for around 250 people,” he says.

“Logistically, Tindivanam is strategically placed in the centre of three of our major depots in south India. So, it is ideal from depot delivered cost and serviceability perspectives. This unit will enhance our sourcing of agricultural produce from farmers in Tamil Nadu,” adds Awasthi.

Another major entrant in Tindivanam is Greenlam Industries, which set up India’s single largest plywood manufacturing unit there in June 2023. With a capacity of 18.9 million sqm per year, it makes only ‘MikasaPly,’ available across southern India and Goa.

“Recognising its immense untapped potential, we are taking steps to market Villupuram,” says industries minister T R B Rajaa. “With its unique geographical advantage, the district can become a top manufacturing destination,” he says.

“Villupuram can be a gateway to a new delta industrial ecosystem, mainly in agro and food processing. We are confident more investors will realize the advantages Villupuram and nearby districts offer,” adds Rajaa.

“We expect Villupuram will become an important zone for food processing industries, including seafood because Marakkanam along ECR offers the opportunity,” says K Senthil Raj, managing director of State Industries Promotion Corporation of Tamil Nadu (Sipcot). “We are eyeing industries that can use local agriculture produce,” he adds.

Known as the ‘sugar bowl of Tamil Nadu,’ it is predominantly an agriculture district with paddy, groundnut, sugarcane, tapioca, millet, and pulses being the major crops.

Cheyyar SEZ developers, a subsidiary of the Taiwan-based Feng Tay Group, was the first major international player to enter Villupuram. Its facility at Tindivanam makes footwear for global brand Crocs.

Now, Tamil Nadu Small Industries Development Corporation (TANSIDCO) is setting up a 155 crore pharma cluster on 113 acres on the western side of Tindivanam, off Tindivanam-Tiruvannamalai Road. It will house more than 30 companies, including large pharmaceutical manufacturers such as Apex Laboratories and Esjay Pharma, say TANSIDCO sources.

“The DPR estimated that the cluster will attract 1,250 crore worth of investments. But, going forward the investments are likely to touch 2,000 crore-2,500 crore,” says a TANSIDCO official.

Pharma firm Sai Mirra Innopharm is setting up a manufacturing unit in the cluster. Its founder J Jayaseelan says, “The location was identified because Chennai airport and seaports are easily accessible. Villupuram is centrally located within the pharma manufacturing hubs of Chengalpet, Kancheepuram, Cuddalore and Puducherry. This cluster is going to be a gamechanger for the growth of the pharma industry in Tamil Nadu.”

“Establishing modern logistics hubs and warehousing facilities in Tindivanam will improve supply chain efficiencies and reduce transportation costs,” says Srivats Ram, chairman, CII Tamil Nadu state council, and managing director, Wheels India. “In addition, strengthening the power grid and promoting renewable energy projects within the district can attract energy-intensive industries, such as chemicals and textiles,” he adds.