(Photo : Apple)

• US-based Jabil plans to establish a manufacturing plant in Tamil Nadu, India, investing $238.2 million and creating 5,000 jobs.
• The plant, near Trichy, is part of an agreement signed in Chicago, highlighting strengthening US-India manufacturing ties.
• The investment is expected to lead to job creation and the emergence of a robust electronics supply chain in the region.
• This move underscores Tamil Nadu's growing prominence as a manufacturing hub and strengthens the global manufacturing ecosystem.

In a significant move that underscores India's growing prominence as a manufacturing hub, US-based electronic components maker Jabil has announced plans to establish a manufacturing plant in the southern Indian state of Tamil Nadu. The investment, amounting to approximately 20 billion rupees ($238.2 million), is expected to create close to 5,000 jobs, according to Tamil Nadu's Industries Minister, T R B Rajaa.

The plant, which will be based near the city of Trichy, is part of an agreement signed in Chicago. The agreement is a testament to the strengthening ties between the US and India in the realm of manufacturing and technology. Jabil, a key supplier to tech giant Apple, is expanding its footprint in India to meet the future needs of its customers and complement its existing facility in Pune, a city in the western Indian state of Maharashtra.

India is emerging as a key manufacturing hub, said Matt Crowley, executive vice president for global business units at Jabil. Our expansion in India will enable Jabil to meet and grow with the future needs of our customers and complement our existing facility in Pune, he added.

Strengthening US-India Ties in Manufacturing

The announcement was made during a signing ceremony in Chicago, attended by M. K. Stalin, Chief Minister of Tamil Nadu, and Dr. T. R. B. Rajaa, Minister for Industries. The leaders were in the United States in support of a state investment campaign, further highlighting the importance of this investment for the state of Tamil Nadu.

The move by Jabil is expected to be a crucial anchor investment in the region, leading to job creation for the local youth and the emergence of a robust electronics supply chain. Jabil's foray into Tiruchirappalli will be a crucial anchor investment in the region and will lead to job creation for the local youth and the emergence of a robust electronics supply chain, said K. Stalin, Chief Minister of Tamil Nadu. This welcome move is another testament to the availability of talent and infrastructure in all parts of our State and will further entrench Tamil Nadu's position as the leader in advanced electronics and innovation.

In addition to Jabil's investment, Tamil Nadu has also signed an agreement with Rockwell Automation, worth 6.66 billion rupees, to expand the automation products maker's manufacturing in the Indian state. Another agreement of undisclosed value with Autodesk was also announced by Chief Minister M K Stalin.

Jabil's Leadership and Historical Context

The investment by Jabil follows a recent announcement that its CEO, Michael Dastoor, has been appointed to the company's Board of Directors. This appointment follows Dastoor's recent promotion to CEO in May 2024. Jabil's Executive Chairman of the Board, Mark Mondello, said, "We are pleased to welcome Mike to the Board. His appointment is a natural extension of his leadership and the impact he has had on Jabil. His thorough understanding of and respect for Jabil's business and culture will make him an invaluable addition."

This move by Jabil is reminiscent of similar investments by other tech giants in India. In 2006, Nokia, the Finnish mobile phone manufacturer, set up a plant in Sriperumbudur, Tamil Nadu, which at its peak employed over 8,000 people and contributed significantly to the local economy. However, the plant was eventually shut down due to tax disputes with the Indian government. Despite this setback, the state has continued to attract foreign investment in the electronics and manufacturing sectors, with companies like Foxconn and Samsung setting up manufacturing units in recent years.