Reliance Consumer Plans Rs 1,156 Crore Investment in Thoothukudi

Reliance Consumer Products Limited (RCPL) announced on March 13, 2024, its commitment to invest Rs 1,156 crore to establish an integrated manufacturing facility in Thoothukudi, a city in Tamil Nadu. This investment marks a significant shift in the region’s industrial landscape, particularly following the protests that led to the closure of the Vedanta-owned Sterlite Copper plant in 2018. The Memorandum of Understanding (MoU) was signed between RCPL and Guidance, the Tamil Nadu government’s investment promotion agency, in the presence of Industries Minister T R B Raaja.

Details of the Investment

The new manufacturing facility will be located at the industrial park managed by the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) in Allikulam, Thoothukudi district. According to Minister Raaja, the facility will cover an area of 60 acres and will focus on multi-product manufacturing, including regional snacks, biscuits, spices, flour, and edible oils. This project is expected to create 2,000 jobs for local residents over the next five years.

RCPL is the third major player in the fast-moving consumer goods (FMCG) sector to invest in Tamil Nadu in recent years. Previously, Godrej Consumer Products Limited established a plant in Chengalpattu district with an investment of Rs 515 crore, while Dabur announced an investment of Rs 400 crore to set up its first facility in South India at a food park in Tindivanam, located approximately 110 km from Chennai.

Growing Industrial Hub

The announcement of RCPL’s investment follows a series of positive developments in Thoothukudi. Just over a month ago, Vietnamese electric vehicle manufacturer VinFast launched its first electric car from a new facility in the city. Thoothukudi has attracted investments across diverse sectors, including electronics and renewable energy, signaling a revitalization of its industrial potential.

Additionally, the Tamil Nadu government is positioning Thoothukudi as a hub for India’s commercial space industry. Plans are underway for a Space Park, with the Indian Space Research Organisation (ISRO) constructing its second spaceport in nearby Kulasekarapattinam. This initiative further emphasizes the region’s evolving industrial profile and potential for future growth.

The investment by RCPL reflects a broader trend of increasing confidence in Tamil Nadu as a favorable destination for industry. As the state continues to attract significant investments, it is poised to play a vital role in India’s economic landscape.