SIPCOT Revives Defunct Industrial Sites to Attract MNCs in Tamil Nadu

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MNC News Today SIPCOT Revives Defunct Industrial Sites to Attract MNCs in Tamil Nadu

Chennai, June 23, 2025 — The State Industries Promotion Corporation of Tamil Nadu (SIPCOT) is spearheading a major brownfield industrial revival strategy, targeting defunct factories and underused land to draw multinational investments.

Key Reallocations & Sector Focus

  • 68-acre former spinning mill in Dharapuram, Tirupur: Open for industrial projects in electronics, solar, non-leather footwear, and battery manufacturing.

  • Dormant sugar mill in Gummidipoondi, Tiruvallur: Transformed into a forged-wheel manufacturing unit for the Indian Railways.

  • 20-acre defunct Tamil Nadu Industrial Explosives site in Katpadi, Vellore: Redeveloped by Aspire Footwear into a non-leather footwear factory


Strategic Vision & Scale

  • SIPCOT now manages over 50 industrial parks spanning 50,000 acres, with plans to add 10,000 more acres over the next two years.

  • Their mission: proactively reclaim and repurpose unused industrial land (spinning mills, sugar factories, explosives depots) to accelerate economic revival in semi-urban and rural Tamil Nadu .


Infrastructure & Sector-Specific Facilities

  • Investments are flowing into sector-targeted infrastructure across parks—labs, cold storage, and even a planned effluent treatment zone at the PM-MITRA textile park in Virudhunagar.

  • SIPCOT has broadened its portfolio from general engineering zones to include electronics, non-leather footwear, medical devices, and textiles.


Impact & MNC Attraction

  • Brownfield redevelopment conserves infrastructure and reduces startup timelines—critical for attracting capital-intensive MNC players.

  • This model taps into idle real assets, delivering job creation and economic activity without needing fresh land acquisitions. States like Dharapuram, Gummidipoondi, and Katpadi are now industrial revival testbeds.


What Lies Ahead

  • SIPCOT will continue to scout defunct industrial sites across 34 of 38 districts, except Chennai, Nilgiris, Mayiladuthurai, and Kanniyakumari.

  • The pipeline includes a mix of utilities, shared services, and sector-specific zones, aligning with MNC needs.

  • This eco-sensitive approach positions Tamil Nadu as a precedent-setting model for industrial revitalization nationwide.