ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintTitle ChevronIcon Twitter
Companies

Machine tool major Tsugami to double production in India

Record demand in auto sector pushes Japanese makers to boost capital spending

Tsugami will expand its factory in Tamil Nadu to double the company's production capacity in India. © Courtesy of Tsugami

TOKYO -- Machine tool manufacturer Tsugami plans to double output capacity in India over the next several years. By both enhancing own facilities and renting floors from a neighboring factory, the maker aims to raise monthly output to about 100 units, from the current 40-50.

Amid robust economic growth in India, Tsugami wants to take advantage of the steady rise of the machine tool demand there.

The Japanese manufacturer controls about 90% stake in Tsugami Precision Engineering India, which produces precision work tools, such as small lathes used in autoparts manufacturing, at a plant in the southern Indian state of Tamil Nadu.

The local unit of Tsugami is now in talks with Proteck Machinery to use production space in the neighbor's factory standing next to Tsugami's Tamil Nadu plant. Through the arrangement, Tsugami's Indian unit will have twice its current 6,000-sq.-meter floor space for production.

Tsugami aims to finalize the negotiations by the end of March next year. Starting from the year ended this March, Tsugami plans to include the Indian operation in its consolidated financial results.

According to the Japan Machine Tool Builders' Association, the amount of machine tool orders Japanese manufacturers received for India totaled 5.6 billion yen ($51.2 million) in February, up 3.3 times from a year earlier. It was the second highest after the amount posted in June 2017. In March too, demand remained robust with a year-on-year increase of 18%, as large orders came in steadily.

The demand in India is promising, "but the market is already dominated by major local players such as Ace Manufacturing Systems," said Tsugami CEO Takao Nishijima. By enhancing production capacity as early as possible, the Japanese business seeks to build a firm presence in India.

Other Japanese machine tool builders are also keen on the Indian market. Makino Milling Machine is now constructing a technical center/showroom in India.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends January 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more