WEG Chooses Tamil Nadu’s Dharmapuri for ₹2,000 Crore Manufacturing Investment

Brazilian electrical equipment manufacturer WEG has chosen Dharmapuri in Tamil Nadu for a proposed manufacturing investment of ₹2,000 crore, opting for the district over Andhra Pradesh after discussions with both states. The project is expected to create around 3,000 jobs, bringing a significant industrial investment to a region that has not attracted the same concentration of manufacturing activity as Tamil Nadu’s industrial centres.

The selection is a development in the state’s efforts to spread industrial growth beyond its corridors. While Chennai, Coimbatore and Hosur have long drawn industrial projects, the proposed WEG facility could strengthen Dharmapuri’s position as an emerging manufacturing destination.

The company’s decision followed engagements with the Tamil Nadu Industries Department and Guidance Tamil Nadu, the state’s investment promotion agency. WEG representatives met Guidance Tamil Nadu officials on July 6, 2026. The company was given presentations on the state’s manufacturing ecosystem and industrial capabilities, before visiting project locations on July 21.

Further discussions took place on August 18 with S Vijayakumar, Additional Chief Secretary for Industries. The final engagement was held in Bengaluru on October 16, when Industries Minister S Keerthana met WEG’s leadership. The company later confirmed its preference for Tamil Nadu, with Dharmapuri as its chosen location.

Andhra Pradesh had also competed for the investment, proposing Kuppam as a site. WEG’s choice of Dharmapuri represents a win for Tamil Nadu in the competition to attract a manufacturer.

The proposed investment is expected to support Dharmapuri’s industrial ecosystem and create employment opportunities across the economy. However, details such as the project’s land requirement, construction schedule, product range, production capacity and commissioning date have not been disclosed.

The announcement comes shortly after South Korean automotive component manufacturers Hwashin Automotive India and Seoyon E-Hwa Summit Automotive India outlined proposed investments totalling ₹1,370 crore in Tamil Nadu over five years. Together, the developments underline the state’s efforts to retain existing manufacturers while attracting investment.

For Dharmapuri, the WEG proposal could mark an important step towards an industrial base. Its impact will depend on the project moving from investment selection to implementation, including construction, recruitment and the start of manufacturing operations.