Chennai: Tamil Nadu has secured a proposed Rs 2,000-crore investment from Brazil-based electrical equipment manufacturer WEG to establish a major consolidated manufacturing facility in Dharmapuri, beating a competing pitch by neighbouring Andhra Pradesh, which had proposed Kuppam as an alternative location. The project is expected to generate around 3,000 jobs.
The decision comes amid growing speculation and political claims that investments are shifting from Tamil Nadu to Andhra Pradesh. WEG’s decision to choose Tamil Nadu over its neighbour offers a counterpoint to these claims, with state officials saying the outcome reflects the state’s ability to attract major global manufacturing investments despite competition from other states.
The decision followed several rounds of engagement between WEG and Tamil Nadu’s Industries Department, including direct discussions with Industries Minister S. Keerthana. The engagement began on 6 July 2026, when the WEG team met Guidance officials. The state made a customised investment pitch highlighting Tamil Nadu’s manufacturing ecosystem and industrial capabilities.
WEG also visited Dharmapuri in July to assess the proposed site. In August, the company held discussions with the Additional Chief Secretary of the Industries department to firm up its plans for the facility. The Industries Minister subsequently met WEG’s leadership last month, following which the company confirmed its preference for Tamil Nadu.
WEG has operated in India since 2011 and currently runs five manufacturing units across Kolkata, Pune, Ahmedabad and Hosur. Its Indian operations produce electric motors, generators, voltage regulators, excitation systems and frequency inverters.
The proposed facility is expected to give Dharmapuri and surrounding areas a significant industrial boost, creating employment opportunities beyond Tamil Nadu’s established manufacturing hubs. Its location also offers access to Hosur, where WEG already operates a manufacturing unit, and Bengaluru.
State officials said the investment would support Dharmapuri’s transition from an agriculture-dominated district into an emerging industrial centre. They added that the government’s investment strategy focuses not only on attracting large projects but also on extending industrial growth to districts beyond the state’s traditional manufacturing hubs.
(Edited by Chingkheinganbi Mayengbam)
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