Tsugami Precision Engineering India Private Limited will inaugurate its new factory at Vallam Vadagal, Chennai in Tamil Nadu on 4 December 2025, marking a major expansion of its manufacturing operations in the country. India now functions as one of Tsugami’s key manufacturing bases, complementing production in Japan and China.
The new factory includes expanded buildings, production lines and machinery to support a broader manufacturing base, alongside a foundry designed to supply precision castings for Tsugami’s CNC machines to improve material quality control and delivery timelines. The new facility houses an assembly unit with an annual capacity of 3,000 machines and a foundry capable of producing 6,000 tonnes of castings.
The company aims to increase its installed machine base in India to improve responsiveness to market requirements and reduce lead times for machine delivery and support. Domestic manufacturing combined with onsite foundry operations positions the new facility to strengthen supply capability for engineering, automotive and aerospace sectors. Leading Japanese and Indian manufacturers currently use Tsugami machines, and the expanded plant is intended to support further adoption across critical industries.
The facility was scheduled for completion in September 2025 and is in its final stages after a multi-year construction programme aimed at increasing capacity and strengthening local production. The project began in January 2019 with planned investments of JPY 3.61 billion (INR 2.22 billion), and cumulative spending has reached JPY 3.66 billion (INR 2.24 billion) as of March 2025. The extended construction period has resulted in the existing Oragadam plant operating longer than originally planned because the transfer of production to the new site was delayed. Capital expenditure in India during FY2024–25 stood at JPY 1.18 billion (INR 744 million), mainly for construction and machinery at the new factory.
Revenue from India operations for the year ended 31 March 2025 stood at JPY 4.67 billion (INR 2.87 billion), a decline of 12.5 percent from the previous year. Automatic lathes accounted for JPY 4.46 billion (INR 2.74 billion), while machining centres, rolling machines and specialised machines contributed JPY 46 million (INR 28 million). Components and services added JPY 165 million (INR 101 million). Grinding machines recorded no sales during the year, compared with JPY 27 million in the previous period. The India business reported a segment loss of JPY 310 million (INR 190 million).
A two-day technical fair will be held at the Vallam Vadagal site on 4–5 December 2025, where more than twenty CNC machines will be demonstrated, accompanied by factory tours and equipment showcases. The event will run from 10:00 to 17:00.
Tsugami Precision Engineering India Private Limited manufactures and sells machine tools and employs 475 people at its operations in Tamil Nadu.
The company recently developed new CNC models including the M10JL10, M10D, FMA3-V and VA4-II, targeting applications that require higher precision, speed and rigidity. Future plans include advancing compact and energy-efficient machines while pursuing lower CO₂ emissions through power-saving technologies and environmentally focused product development.
