Sumitomo Corporation is expanding its footprint in India’s booming manufacturing sector, signing an agreement with Mahindra World City Developers to develop an additional 38 hectares at the Origins Chennai Industrial Park.
The expansion will extend the industrial park’s total development area to approximately 220 hectares, strengthening its position as a key manufacturing hub near Chennai.
The new land will be developed adjacent to the initial plots of the industrial park’s second phase. Around 57 hectares of those initial second-phase plots are already under development and sale, while approximately 124 hectares were completed during the first phase.
Sumitomo plans to begin sales of the newly added plots in fiscal 2027 and complete construction in fiscal 2028.
The expansion comes as demand for industrial space in India continues to accelerate. Since sales began in 2017, 19 companies—including nine Japanese firms—have moved into the park. About 90% of the first- and second-phase initial plots have already been sold or reserved.
With demand remaining strong, Sumitomo said it decided to add new plots to the second phase to capture further growth in India’s manufacturing market.
India’s economic outlook is adding momentum to the investment push. The International Monetary Fund estimates the country’s GDP growth at 6.4% in fiscal 2026, with growth expected to remain strong beyond fiscal 2027. Population-driven domestic demand and continued entry by foreign companies are fueling expectations for further manufacturing investment.
Japanese companies are also receiving increased government support as they expand in India, including through initiatives such as the Japan-India Economic Office.
Located along National Highway 16, about 37 kilometres north of central Chennai, the industrial park benefits from access to major transport infrastructure, an international port and Southeast Asian markets. Power substations and roads connecting the park to the national highway have also been developed with support from the Japanese and Indian governments.
Chennai is emerging as a major manufacturing and export centre, with investment expanding beyond traditional automotive and air-conditioning industries into semiconductors and electronic equipment.
The expansion also builds on Sumitomo Corporation’s wider industrial-park business across Asia. The company develops, sells and operates industrial parks in Indonesia, the Philippines, Vietnam, Myanmar and Bangladesh, in addition to India.
As of July 2026, Sumitomo’s 10 existing industrial parks housed 661 companies employing approximately 250,000 people across roughly 3,200 hectares.
The company said it will draw on that experience to support tenants at Origins Chennai and attract additional manufacturing companies, while helping address the infrastructure and business needs of India’s rapidly expanding industrial sector.
The move underscores Chennai’s growing importance in India’s manufacturing ambitions—and Sumitomo’s bet that demand for industrial space will keep rising.
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