By Praveen Paramasivam
CHENNAI (Reuters) -Japan’s Omron will invest 1.28 billion Indian rupees ($15.5 million) in its first medical device factory in India in the southern state of Tamil Nadu, the local government said, the latest foreign manufacturer to set up operations in the region.
Omron will play an important role in enhancing the medical infrastructure of Tamil Nadu by beginning to produce medical devices in the state, Chief Minister M.K. Stalin said in a statement on Tuesday.
The government signed a deal with the company at an event attended by Ayumu Okada, managing executive officer of Omron’s healthcare business, and other executives.
Omron declined to comment.
Reuters earlier in the day reported Omron will make devices, including blood pressure monitors in the state, citing two government sources with direct knowledge.
The Japanese company makes electrical equipment ranging from blood pressure monitors to industrial switches and will become the latest global manufacturer to enter or ramp up production in Tamil Nadu, which has in recent months attracted investments from Hyundai Motor, Nike shoemaker Pou Chen and SoftBank Group-backed Ola Electric.
Omron last month forecast cardiovascular equipment sales to gradually recover on the easing of COVID-19 curbs in China and the peaking out of inflation mainly in the United States and Europe.
It also said it would focus on “capturing demand in India,” where it expects sales of blood pressure monitors to soar in the coming years, spurred by an aging population and lifestyle changes.
Omron’s healthcare devices are manufactured in Japan, China and Vietnam.
On Monday, Tamil Nadu said six other Japanese manufacturers had signed agreements to invest 8.19 billion rupees.
More investments were expected in the medical technology space going ahead, one of the government sources said.
($1 = 82.7047 Indian rupees)
(Reporting by Praveen Paramasivam in Chennai; Editing by Aditya Kalra, Christian Schmollinger and Sharon Singleton)
