Telangana secures two major investments from Japanese firms

Hyderabad: Two Japanese manufacturing companies, Daifuku Company Ltd and Nicomac Taikisha Cleanrooms Private Ltd, on Tuesday announced a total investment of Rs 576 crore in Telangana. Industries minister K.T. Rama Rao signed memoranda of understanding with the companies.

Daifuku is said to be the world's leading provider of automated material handling technology and solutions, and would set up a manufacturing facility in the state with an investment of Rs 450 crore and provide employment to over 800 people.

Nicomac Taikisha Cleanrooms, said to be a pioneer in the construction of cleanrooms and HVAC systems for electronic devices, lithium-ion battery manufacturing and hydroponic farming in the food industry, announced plans to invest Rs 126 crore in establishing a manufacturing facility.

Following the signing of the MoUs, Rama Rao stated that the world was looking for alternative manufacturing locations outside of China and urged state industrialists to "think big and make world class products" and focus more on the manufacturing sector.

Several Chinese manufacturing firms were planning to relocate their operations to other countries due to China's changing political situation, and India should be prepared to take advantage of that opportunity, he stated.

While claiming that land was a luxury and scarce commodity, he urged industrialists to be more innovative and create inventions. "Obtaining capital used to be a big challenge in the past. With the government’s full support, it is no longer a challenge. Entrepreneurs need to be bolder and aggressive," he said.

The industries minister also urged industrialists to compete in scaling up their operations and setting up large parks in the state, citing the example of a 500-acre industrial park being built by the state government in Dandumalkapur, the largest park in Asia.

"India needs to achieve growth and development in the manufacturing sector in 10 years against the United States, which achieved in 30 years and China in 25 years. We need to pole vault and outpace others,” he remarked.

Daifuku's factory, with a footprint of more than 200,000 square feet, will augment its current 60,000-square-foot facility in Pashamylaram. The new facility, which is likely to be built in Chandanvelly, is expected to cost Rs 200 crore in the first phase, with Daifuku hoping to start operations within the next 18 months.

Nicomac Taikisha Cleanrooms, on the other hand, operates two manufacturing units at IDA Bolaram in the city. The new and third manufacturing facilities will produce goods for the Indian, Japanese, and Asian markets.