Omron to open its first Indian medical devices plant in Tamil Nadu (updated)

OMRON

30/05/2023 11:58

(Changes sourcing, adds comment from state head, investment
size in paragraph 3, 4)
    By Praveen Paramasivam
       CHENNAI, May 30 (Reuters) - Japan's Omron  6645.T  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  005380.KS , Nike shoemaker Pou Chen
 9904.TW  and SoftBank Group-backed  9984.T  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)
 ((Praveen.Paramasivam@thomsonreuters.com; +91 867-525-3569;))