Japan's Omron will open its first medical device factory in India in the southern state of Tamil Nadu, two local government sources with direct knowledge said on Monday, the latest foreign manufacturer to set up operations in the region.
Omron will make devices including blood pressure monitors and will invest nearly ₹130 crore (about $15.7 million) to set up the plant, the sources said, declining to be identified ahead of an official announcement later on Tuesday.
The company did not respond to a request for comment from Reuters.
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, Nike shoemaker Pou Chen and SoftBank Group-backed Ola Electric.
Omron last month forecast sales of its cardiovascular equipment 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 currently manufactured in Japan, China and Vietnam, according to its website.
On Monday, the Tamil Nadu state government said six other Japanese manufacturers had signed agreements to invest ₹819 crore ($99 million) during a visit by state officials to Japan.
More investments were expected in the medical technology space going ahead, one of the government sources said.