Hosur vs Karnataka? Aequs’ Rs 4,000 crore Tamil Nadu move triggers political heat

• Aequs to invest Rs 4,000 crore in Tamil Nadu for new complex
• Karnataka minister says Aequs still expanding in Karnataka
• Move seen as business diversification, not shift from Karnataka

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Karnataka-based Aequs Limited’s decision to invest Rs 4,000 crore in neighbouring Tamil Nadu has sparked a political row. However, the state government maintains that the company continues to expand its footprint in Karnataka.

Aequs on February 16 signed a memorandum of understanding (MoU) with the Tamil Nadu government to set up an aerospace and defence manufacturing complex at the SIPCOT-Soolagiri Industrial Park near Hosur, close to the Karnataka border.

Also, read: Tamil Nadu signs Rs 5,980 crore MoUs with MinebeaMitsumi, Aequs; 8,400 jobs expected

Responding to criticism on social media, Karnataka Industries Minister MB Patil said the state government had been informed in advance about the investment and clarified that the move was part of the company’s broader diversification strategy.

“While we welcome every major investment in India, I would like to clarify that Aequs continues to expand its footprint in Karnataka, including significant growth plans in Kolar with an investment of Rs 3,000 crore for electronics manufacturing, alongside its established presence in other parts of the state. Its recently approved Rs 1,500 crore ECMS project will also be grounded in Karnataka. The state remains central to its long-term strategy,” Patil wrote on X.

He added that Aequs is setting up a new manufacturing unit in Kolar - its first major project in south Karnataka - on about 100 acres. The company is also expanding its operations in Hubballi and Belagavi.

Also, read: 'Shocking that Karnataka lost out to Tamil Nadu in landing investments from Ather, Ola'

“We were already informed and were aware that the Hosur investment is a business decision aimed at geographic diversification and de-risking operations, not a shift away from our state. Healthy competition between states strengthens India’s manufacturing ecosystem,” Patil said.

“We remain committed to deepening Karnataka’s leadership in aerospace and advanced manufacturing, and our engagement with industry partners is strong and ongoing,” he added.

The minister was responding to a post by a social media handle, Devanahalli Rising-North Bengaluru, which questioned why a Karnataka-based firm was expanding in Hosur instead of within the state, despite the presence of a strong aerospace ecosystem in Devanahalli and Belagavi.

Also, read: Aequs flies beyond Bengaluru: Nearly every aircraft delivered globally today has parts made in Belagavi

Founded as QuEST Global Manufacturing, Aequs established its aerospace special economic zone (SEZ) on 250 acres in Belagavi in 2008. The company has since diversified beyond aerospace. In Karnataka, Aequs operates an aerospace SEZ in Belagavi spanning 250 acres with around 1 million sqft. of manufacturing space. In Hubballi, it has developed India’s first consumer durables cluster across a 400-acre SEZ and DTA. In Koppal, it has set up a 400-acre toy manufacturing cluster, marking its expansion into new-age manufacturing segments.