Synopsis: Wan Hai Lines, Delta Electronics, and Sheng Long Bio-Tech’s representatives took a two day visit to Tirunelveli and Thoothukudi to explore ₹80,000 crore investment. Though no formal commitment has been made yet, this visit signals the emergence of new investment hubs- Tirunelveli and Thoothukudi.
The growth of electronics and semiconductor manufacturing in Tamil Nadu has been centered in and around Chennai for years with the southern districts of the state not being utilized for high volume manufacturing. The Taiwanese delegation is reportedly evaluating locations in SIPCOT parks and Thoothukudi port to understand the scope for additional capacity and it is said three companies are considering committing ₹80,000 crore combined.
Focus on South Tamil Nadu
- Delegation size: An eight-member Taiwanese team, representing three companies, is evaluating ground-level assessment in both districts.
- Companies identified: A team delegation consisting of three companies – Wan Hai Lines (container shipping company), Delta Electronics (a global power supply manufacturer with a facility in Bengaluru) and Sheng Long Bio-Tech (aquaculture industry).
- Proposed investment: Tirunelveli District Chamber of Commerce and Industry president Gunasingh Chellathurai said the three companies are looking for an estimated investment of ₹80,000 crore for their ventures in Tirunelveli and Thoothukudi, according to various sources.
- Decentralisation push: Land rates are at a premium in the Chenna-Sriperumbudur-Oragadam Industrial belt, and has forced both central and state governments and investors to look towards the southern districts that offer space at a much lower price for electronics and semiconductor manufacturing.
- Timing significance: The timing of the delegation’s visit coincides with the national emphasis on developing domestic semiconductor capabilities and will further position Tamil Nadu to compete with states like Gujarat and Karnataka for high-value electronics investment
What the Delegation Is Evaluating
- The team inspected the V.O. Chidambaranar (VOC) Port, Tuticorin to study container handling capacity, storage capacity, and export-import infrastructure.
- The delegation was scheduled to visit SIPCOT Gangaikondan and hold meetings with local stakeholders and officials.
- The team also visited operational facilities including TP Solar and VinFast’s facility in Tuticorin, specifically to understand the region’s manufacturing ecosystem first-hand.
- Industrial infrastructure readiness, drinking water availability, road and rail connectivity, air connectivity, and export logistics were all part of the assessment.
Why Tirunelveli and Thoothukudi Are Cost-Competitive
Chelladurai laid out specific cost comparisons that make the southern corridor attractive to large investors,
- Land cost gap: An acre of SIPCOT land near Chennai costs between ₹1.5 crore and ₹2 crore, while land in Tirunelveli and Thoothukudi is available at a lower rate.
- Scale of savings: For companies requiring 500 to 1,000 acres, this cost difference translates into substantial savings.
- Skilled manpower: The region has a large pool of educated graduates, ensuring availability of skilled labour for manufacturing operations.
- Process so far: According to Chelladurai, the companies asked local bodies to show them the infrastructure and conduct a regional survey; they will inspect facilities including SIPCOT parks before giving their opinion.
Also, in Thoothukudi the average property price ranges between ₹4,304 per sq ft. to ₹5,125 per sq ft. and in Tirunelveli the average property price is approximately ₹5,552 per sq ft.
All in all
The visit currently signals early-stage interest rather than a confirmed deal, but the scale of the proposed ₹80,000 crore investment makes Tirunelveli and Thoothukudi hubs worth watching closely in Tamil Nadu’s industrial diversification story.
