safari2021
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Taiwanese electronics major and iPhone manufacturer, Pegatron, will begin operations at a brand-new facility in Chennai, sources close to the development have told CNBC-TV18.
The company has leased 500,000 square feet at Casagrand Industrial Park at Chengalpattu, just outside Chennai, where it is reportedly investing Rs 1,100 crore. According to the Casagrand, Pegatron's facility will be ready for operations in four months.
"Pegatron was scouting for locations in India for quite a few months now, before they finally decided to zero in on Chennai," said Casagrand’s founder and managing director, Arun MN, speaking exclusively to CNBC-TV18. "Pegatron has leased the space for about $30 million; work on the facility has just begun and should be complete in four months or so," Arun added.
The Apple contractor’s choice of Chennai as the ideal location to set up shop, a source close to the development says, was reinforced thanks to the city’s proximity to manufacturing hubs in the automotive and component space. The metropolis’ manufacturing corridors in Chengalpattu, Sriperumbudur and Oragadam are well endowed with automotive and manufacturing giants like BMW, Daimler, Hyundai, Royal Enfield, Foxconn, Salcomp and Nokia Networks, to name a few.
Incidentally, Pegatron's investment in Tamil Nadu is also the second big one in the recent past, after mobility major Ola invested Rs 2,400 crore in setting up an electric two-wheeler plant in Hosur, near the Karnataka border. The town also plays host to EV major Ather and two-wheeler giant TVS.
"The manufacturing ecosystem and Chennai's proximity to big names in electronics and manufacturing was the main draw for Pegatron," said a source close to the development, adding, "Ultimately, the choice boiled down to Tamil Nadu or Karnataka. The company was keen on Tamil Nadu because of the state’s track record in manufacturing and electronics manufacturing."
Recently, Chennai was also ranked first among major cities in terms of absorption of manufacturing real estate on lease, through 2020. While nearly 6.6 million square feet in leased manufacturing space was absorbed pan-India in 2020, Chennai led other cities in absorbing 36 percent of available inventory. Pune came second with an absorption rate of 20 percent.
