MAS Holdings Plans $93 Million Tamil Nadu Investment as Sri Lanka Operations Shift
MAS Holdings plans to invest about $93 million in apparel, textiles and technical components in Tamil Nadu, with the project expected to create roughly 7,000 jobs. The expansion comes as the Sri Lankan exporter reallocates production at two domestic facilities while retaining most of its workforce in Sri Lanka.
Tamil Nadu project targets 7,000 jobs
MAS Holdings, Sri Lanka’s largest exporter, plans to invest about $93 million in the Indian state of Tamil Nadu while reorganizing parts of its manufacturing network at home. Sri Lanka Mirror reported that the investment will cover apparel, textiles and technical components. Reuters put the planned commitment at approximately 8.8 billion Indian rupees and said the project is expected to create around 7,000 jobs.
The company was among the investors included in agreements announced by the Tamil Nadu government. The project is expected to extend across several districts and cover multiple activities, including the state’s established apparel and textile industries. The report did not provide a timetable for construction, production start-up or the allocation of investment among the different business lines.
The MAS commitment forms part of a wider investment drive by Tamil Nadu. According to Reuters, the state signed 97 agreements with investors, including foreign companies, in August. Those agreements had a combined value of about 674.52 billion Indian rupees and were expected to generate more than 100,000 jobs.
Sri Lankan factories are being repurposed
The Indian expansion coincides with changes at MAS facilities in Sri Lanka, although the measures described by the company do not amount to a wholesale exit from domestic manufacturing. In February 2026, MAS decided to stop garment production at its Methliya plant in Thulhiriya and use the facility for textile manufacturing, including knitting, dyeing and finishing.
That decision affected approximately 2,200 employees. MAS said workers were offered opportunities to transfer to other company factories in Sri Lanka or to its operations in Jordan. The head of the Sri Lanka Export Development Board subsequently characterized the move as a reorganization: garment production was being transferred to other MAS factories while textile manufacturing at Methliya was expanded.
In March 2026, MAS also decided to move production from the MAS Thurulie factory to other facilities in and around Thulhiriya. The company attributed the decision to severe damage to buildings and machinery caused by Cyclone Ditwah at the end of 2025, as well as the site’s previous exposure to flooding. MAS was reported to be arranging positions at other company factories for more than 1,600 employees from the facility.
India offers an established production base
Tamil Nadu has a substantial apparel and textile supply chain, ports, transport links, industrial infrastructure and a large labor force. The state government has also moved to accelerate approvals, permits and no-objection certificates for investors, including a program intended to issue some approvals within 21 days. These conditions provide MAS with an established base for expanding production in India.
The investment does not remove Sri Lanka’s central role in the group. MAS Holdings’ 2025 Impact Report said the company employed 97,989 people at the end of that year. Of these, 73,034, or 74.5%, worked in Sri Lanka. The contrast is nevertheless significant for policymakers and industry participants: MAS is committing capital and planning 7,000 new jobs in Tamil Nadu while shifting apparel capacity among Sri Lankan sites. For suppliers and workers, the immediate issue is where future production lines and orders are placed, rather than whether MAS has abandoned its home market.