Germany-based tunnel boring machine (TBM) maker Herrenknecht is taking its expansion plan ahead for its Chennai operations by setting up a new manufacturing plant on 12.4 acres of land in Kannigaipaer in North Chennai, acquired for over Rs 50 crore.

The expansion responds to the growing demand for TBMs driven by numerous tunneling projects across India, many worth over Rs three lakh crore in the coming decade. Herrenknecht had set up its first assembly facility in Chennai in 2007. The company has localised 70 percent of its manufacturing and produces 10-12 metro-sized TBMs annually, including those used in Chennai Metro’s Phase I and II projects.

The land deal was advised exclusively by JLL, and the expansion was supported by an MoU signed during Tamil Nadu CM MK Stalin’s visit to Germany. India currently relies heavily on imported TBMs from countries including Germany, China, and the US.