Officials said companies entering the programme will receive single window facilitation for approvals, incentives under the state policy once they submit detailed project reports, and export promotion assistance.
Published Nov 27, 2025 | 12:06 PM ⚊ Updated Nov 27, 2025 | 12:55 PM
Annapoorna, Sri Krishna Sweets and Hatsun.
Synopsis: The union government’s ‘Make In India’ initiative may have fallen short of achieving its targets in several parameters including export performance but a recent initiative by Tamil Nadu government aims at taking home-grown iconic brands into the international market — enhancing exports, creating jobs and investing in R&D for preservation, storage, logistical techniques for Indian foods at an industrial scale. MoUs have been signed with popular food brands in Tamil Nadu to take them global.
The Tamil Nadu government seems to be on a mission to elevate local food brands in the state to an international level. The DMK-led state government recently signed Memoranda of Understanding (MoUs) with several local, iconic food brands to help them establish industrial kitchens, scale Research and Development (R&D), and enhance their export capacity.
At the TN Rising Conclave on Tuesday, 25 November, the state government pitched Coimbatore as the base where homegrown brands, such as Annapoorna, Sri Krishna Sweets and Hatsun, could transform into global players.
The move comes at a time when there have been debates regarding the success of the Union government’s Make in India initiative, which encouraged global brands to set up their bases in Indian states. While the Make in India initiative has seen some success in increasing FDI and growth in sectors like Defence and electronics, it has fallen woefully short on targets of enhancing manufacturing share in GDP, enhancing exports and job creation.
While several state governments, including Tamil Nadu, have provided international tech and manufacturing giants, including Google, Foxconn, and Meta, with land, incentives worth thousands of crores rupees and other resources, this move by the Tamil Nadu government could pave the way for a greater visibility for Tamil brands at the international level, similar to that of Amul, MTR and Haldiram.
According to the state government, Guidance Tamil Nadu initiated direct engagement with leading Western Tamil Nadu brands to support expansion and international ambitions. Officials said companies entering the programme will receive single window facilitation for approvals, incentives under the state policy once they submit detailed project reports, and export promotion assistance.
Tamil Nadu’s signing of MoUs with local brands has come under severe trolling by several quarters, with some accounts mocking investment in R&D for food products. However, a closer look at the initiative shows where the resources are being allocated and why. The funding is aimed at scaling up production, investing in R&D for processing, preservation techniques, storage and extended shelf life of food products meant to be sold globally while adhering to international standards for packaged foods.
According to the Industries Ministry, Hatsun Agro Products signed an investment MoU worth ₹860 crore to set up 400 dairy product manufacturing units. The company plans to scale production capacity, expand its cold chain and strengthen its retail presence across regions. This investment supports value growth added products under brands that include IBACO, which have the potential to become global favourites.
Annapoorna signed for a ₹300 crore centralised industrial kitchen in Coimbatore, projected to employ 500 people. The facility will feature one of the largest production lines in South India, along with R&D for new food products.
Sri Krishna Sweets will invest ₹100 crore in an export-oriented sweets unit with 200 jobs and a research facility. E Star Foods Pvt Ltd from Coimbatore also joined the list with a ₹200 crore investment to build a tea and beverages manufacturing unit, projected to create 1,000 jobs. Podaran Foods will invest ₹310 crore in a cool drinks manufacturing unit that will create 300 jobs.
It is to be noted that Indian food brands, such as Gujarat’s Amul, Maharashtra’s Haldiram and others have already established their presence in the global markets. And recently, the Karnataka government-run KMF’s Nandini also expanded its business to the international markets.
Tamil Nadu Industries Minister TRB Rajaa noted that the state government wants the local brands to think beyond borders.
“Tamil Nadu has a rich and varied culture, and has speciality cuisine in every corner, and so does India. Our culinary delights are welcome all over the world, too! We want Tamil Nadu’s food companies to think beyond borders and compete with the world,” he said.
“MTR Foods was acquired for $100 million, and Haldiram is valued at $10 billion. There is no reason we cannot build brands of that scale here in Tamil Nadu. The government will back them, not just with approvals but with active policy support and export promotion. Why should incentives be reserved only for multinational food companies when the next global success story could be born in Tamil Nadu?” he questioned.
Meanwhile, Annapoorna is in the process of developing one of South India’s largest and most advanced centralised industrial kitchens in Coimbatore on a five-acre campus with a built-up area of approximately 1,50,000 sq. ft. The Tamil Nadu government’s initiative to help the brand is likely to speed up the process and reduce red tapism.
The company said this state-of-the-art facility is envisioned as the central production hub supporting the brand’s rapidly expanding portfolio of restaurants, sweets and savouries, packaged foods, catering services, and institutional supply.
Jegan Damodarasamy, the CEO of Annapoorna, told South First that the upcoming facility will serve as the base for expanding the company’s domestic as well as international businesses.
“To fully establish our brand in the international market, we need to get several things sorted first. We will be manufacturing pre-processed food items, sweets, savouries, and more for export without compromising on quality. We do not want to place ourselves on the global stage prematurely and fade away due to a lack of preparation. We will ensure that our product lines are fully ready for export from the facility, both domestically and internationally,” he said.
The company also said the project will commit to a region-driven supply chain, with a majority of the raw materials, including vegetables, grains, milk, and staples, to be directly sourced from farmers in and around the Coimbatore region.
The centralised kitchen is expected to directly employ over 700 people, contributing significantly to industrial employment and skill development in the local community.
Last year, much ahead of the GST revamp, Annapoorna had been in the news after its Managing Director, Sreenivasan, raised issues about the GST regime at a meeting attended by the minister in Coimbatore. He pointed out the discrepancies in taxing sweet and spicy food.
He had questioned the striking differences in tax rates in different food items — specifically the cream bun, which had an 18 percent GST, while the bun had zero percent GST, and sweet items had five percent GST.
