TCR Engineering and Chugai Technos Sign MOU to Connect India and Japan in Inspection and Asset Integrity

The TCR Engineering Chugai Technos MOU, signed on 29 April 2026, formalises a three-party collaboration between TCR Engineering Services Pvt. Ltd. (Navi Mumbai), Chugai Technos Corporation (Hiroshima, Japan), and Chugai Technos India Pvt. Ltd. (Bengaluru). The agreement positions both inspection houses to channel each other's services across India, Japan, and Saudi Arabia for project-based work in non-destructive testing (NDT), asset integrity, environmental testing, and laboratory services.

Rohit Bafna and H. Sato rom Chugai Technos and Sarangaraja Balakrishnan from Chugai India at the signing ceremony. Viewed by Naoshi Kawabe and Kazuyoshi Morimoto from Chugai Technos.

This is not a joint venture, not a merger, and not an exclusive arrangement. It is a non-binding, project-based MOU valid for two years, governed by Indian law, with arbitration seated at the Singapore International Arbitration Centre. Each party operates as an independent contractor. What the MOU does establish is a structured channel through which TCR's testing and integrity services reach Japanese asset owners, and Chugai's drone, scale checker, and environmental testing capabilities reach Indian and Middle Eastern clients.

Why this MOU, and why now

Indo-Japanese industrial cooperation is at a decade high. The 15th India-Japan Annual Summit held in Tokyo on 29 and 30 August 2025 produced the Joint Vision for the Next Decade, with over 100 agreements covering economic security, technology innovation, mobility, defence, and clean energy. Prime Minister Narendra Modi and then-Prime Minister Shigeru Ishiba committed to deepening cooperation in critical and emerging technologies, supply chain resilience, and infrastructure.

In November 2025 Sanae Takaichi assumed office as Japan's first woman Prime Minister. She and Prime Minister Modi met on the sidelines of the G20 Summit in Johannesburg on 23 November 2025 and reaffirmed the bilateral track, with explicit focus on artificial intelligence, semiconductors, economic security, and a free and open Indo-Pacific. Both governments are working towards the 75th anniversary of India-Japan diplomatic relations in 2027.

The flagship physical embodiment of this relationship is the Mumbai-Ahmedabad High-Speed Rail project, built on Shinkansen technology, financed by JICA, and executed by Japanese engineering, procurement and construction firms working with Indian counterparts. Beyond high-speed rail, Japanese OEMs run major manufacturing operations in India, Japanese banks finance Indian infrastructure, and Japanese engineering firms are active across Saudi Arabia's Vision 2030 build-out. Inspection and quality assurance capability that crosses these borders cleanly is a real commercial need.

Two companies, one philosophy on customer trust

TCR was founded in 1973 in Mumbai. Chugai Technos was founded in 1953 in Hiroshima. Both are family-rooted, technically-led inspection houses that have outlasted three generations of competitors in a sector dominated by global conglomerates. Both have remained independent because they invested in customer relationships over decades, not quarters.

The MOU was signed because of a shared philosophy. Inspection is not a commodity. It is a trust contract between an asset owner, an inspector, and a regulator. Both companies believe the right way to build a customer relationship is to invest time, technical effort, and patience over years. They share a respect for craftsmanship, a distaste for shortcuts, and a conviction that hard work compounds. That alignment is what made the conversation possible. The legal framework simply gave it shape.

What flows from TCR to Japan and adjacent markets

Chugai will introduce TCR's materials testing and NDT capabilities to Japanese asset owners, plant builders, and EPC contractors operating across Japan, Indonesia, Vietnam, and other regions where Chugai already has an operational footprint. The service set is substantial and addresses real Japanese demand:

Rail track and welded butt joint fatigue testing, performed at TCR's dedicated rail and coupler fatigue setup per IS 16172, ISO 15630, EN 10138, and ASTM E1034. This is directly relevant to high-speed rail material qualification and to Japanese EPC firms sourcing rail and reinforcement components from Indian mills. Read more on TCR's rebar and coupler testing here.

Coupler and TMT rebar fatigue testing, BIS-accredited under IS 16172 and ISO 15630-1, used by infrastructure contractors and metro project teams.

Creep and stress rupture testing per ASTM E139, plus accelerated creep rupture testing (ACRT) for boiler tube remaining life evaluation. More on creep, ACRT, and stress rupture.

Boiler tube failure investigation and remaining life assessment through TCR Advanced Engineering Pvt. Ltd., the asset integrity subsidiary based in Vadodara. Read more on TCR's boiler audit and inspection.

Sour service corrosion testing: HIC per NACE TM0284, SSCC per NACE TM0177 (Methods A, B, C, and D), and full ring testing. TCR is approved by Petroleum Development Oman and Oman Gas and Networks (OQGN), and has executed numerous projects for Shell. Read more on NACE corrosion studies.

Fracture toughness work: CTOD per BS 8571 and ISO 15653, K1c per ASTM E399, J-integral per ASTM E1820, and fatigue crack growth per ASTM E647, including H2S pre-charged CTOD per NACE TM0177 Solution A. More on CTOD and fracture toughness.

ARTiS (Automated Reformer Tube Inspection System) for HK and HP-modified alloy reformer tubes used in steam methane reforming and ammonia plants. ARTiS detects creep damage, internal and external defects, and tube swelling, all of which are common concerns in Japanese petrochemical and ammonia operations. More on reformer tube inspection.

Failure investigation and root cause analysis, with over 9,000 investigations completed across the TCR Group. More on failure analysis and engineering advisory.

High-temperature inspection up to 350°C, helium leak detection, and RT film digitalisation, with over 250,000 films converted to date for clients including IOCL and GAIL.

ARTiS, TCR Advanced, and the Japanese petrochemical fit

The reformer tube inspection element deserves particular attention. ARTiS was developed by TCR Advanced Engineering Pvt. Ltd. under the leadership of Paresh Haribhakti, Managing Director, who also authored Failure Investigation of Boiler Tubes: A Comprehensive Guide (ASM International). TCR Advanced has executed reformer tube inspections across Indian and Middle Eastern fertiliser, petrochemical, and refining plants and holds a deep operating record in the technique.

TCR_ARTiS_Chugai_Technos_Flyer_JP.pdf

Reformer tube failure is a high-stakes, low-frequency problem. A single failed tube can shut down an ammonia plant for weeks. The Japanese chemical and fertiliser sector operates a substantial steam reforming installed base, much of it past its original design life. Bringing a proven Indian inspection capability into that market through Chugai's relationships is the kind of value the MOU is designed to create.

"Reformer tubes operate at temperatures and pressures where the margin for inspection error is small. ARTiS gives plant operators a quantitative, repeatable picture of internal and external tube condition. Japanese petrochemical and ammonia operators have the same reformer tube life concerns we have addressed in India and the Middle East, and we look forward to bringing that capability to them through this collaboration." Paresh Haribhakti, Managing Director, TCR Advanced Engineering Pvt. Ltd.

What flows from Chugai to India and Saudi Arabia

TCR will introduce Chugai's specialty inspection and environmental services to clients across India and the Middle East. Chugai brings three distinct capability blocks that complement TCR's portfolio rather than overlap with it.

Drone-based structural inspection. Chugai operates a drone fleet for external and confined-space inspection of bridges, tanks, flare stacks, and historical structures. Their reference projects include the soundness survey of the Atomic Bomb Dome in Hiroshima using DJI Matrice 300 RTK and Skydio 2+ platforms, with crack detection capability down to 0.2 mm. Combined with TCR's existing footprint of over 500 bridges inspected through robotic and AI-based audits in Maharashtra, this creates a stronger combined offering for the Public Works Department, MMRDA, NHAI, MSRDC, MoRTH, and India's metro authorities. Read more on TCR's road and bridge inspection work.

Scale Checker. This is Chugai's proprietary radioisotope-based pipeline scale and blockage measurement system. It measures scale, sludge, and shellfish accumulation inside live pipelines without removing insulation and without taking the line out of service. Indian refineries, urban water utilities, cooling water systems, and seawater intake lines all face this problem. So do Saudi refining and desalination operators. The Scale Checker is a service TCR does not currently offer, and the complementarity is clean.

Environmental and emissions testing. Chugai's environmental practice includes stack and ambient air quality monitoring, AIG/SCR/APH/ESP/FGD performance testing for thermal power plants, combustion tuning, PFAS analysis in activated carbon, greenhouse gas inventory work, and AI-based crack detection for civil infrastructure. India's tightening Central Pollution Control Board norms on thermal plant emissions, the FGD retrofit programme, and refinery environmental clearances all create real demand for Japanese-grade environmental testing methodology. The same is true in Saudi Arabia, where the National Center for Environmental Compliance is raising the bar on industrial emissions monitoring under Vision 2030.

The Saudi Arabia extension

The MOU also opens a path into Saudi Arabia. TCR Arabia, the joint venture between TCR Engineering and Gas Arabian Services Company SCJSC (Tadawul: 4146), operates from Dammam in the Eastern Province under Country Head Syed Ameen Hassan.

TCR Arabia holds approvals from Saudi Aramco and SABIC, and has built a long operating record across the Saudi downstream sector including Petro Rabigh, Lubref, Tasnee, and SIPCHEM. Three Saudi flows make immediate sense under the MOU. Chugai's Scale Checker has direct application in Saudi refinery pipelines and in seawater intake systems for desalination plants run by SWCC, where shellfish adhesion and scale buildup are recurring problems. Chugai's drone capability can serve flare stack and storage tank inspection across the Saudi downstream sector, as well as bridge inspection for transport corridors being built under Vision 2030 mega-projects including NEOM, the Red Sea project, and Diriyah. And where Japanese plant builders such as JGC, Toyo, Chiyoda, and Mitsubishi are involved in Saudi petrochemical and refining capacity additions, Chugai's introduction into those Japanese-led EPC supply chains gives TCR India and TCR Arabia a sharper entry point than the current bid pathway provides.

TCR Arabia is not a signatory to the MOU. The parties have, however, recognised Saudi Arabia as a market where the collaboration can extend through TCR Arabia's existing presence, approvals, and the Gas Arabian Services (Tadawul: 4146) industrial network.

The digital exchange: TCR's agent-based AI and laboratory information management system

One of the more distinctive elements of the MOU sits below the test method exchange. TCR has invested heavily in a managed agent-based AI workflow layer that sits on top of its laboratory information management system (LIMS). This stack automates quotation generation, sales inbox triage, certificate issuance, NABL audit readiness, inspection report routing, client communication tracking, and dormant quote follow-up. Every test, every calibration, every NABL scope item, and every client communication is captured in a single auditable thread.

After reviewing TCR's working model during MOU negotiations, Chugai's leadership expressed strong interest in adopting elements of this approach. Under the MOU, TCR will share its agent-based AI architecture and LIMS methodology with Chugai as part of the technical exchange. Most cross-border inspection MOUs trade test methods. This one trades operating systems as well. For TCR, this is a chance to demonstrate that Indian engineering depth now extends into laboratory software and AI workflow design, not just bench testing.

The three-party structure and Chugai India's role

Chugai Technos India Pvt. Ltd., based in Bengaluru, is the on-the-ground coordination arm for the collaboration. Under the Managing Director Sarangaraja Balakrishnan, Chugai India will handle local project management, administrative interface, and coordination between Chugai Japan and TCR. This three-party structure removes practical friction. Indian project enquiries route through Chugai India to TCR. Japanese opportunities route through Chugai Japan. Saudi opportunities route through TCR Arabia, working with TCR Engineering, and Chugai Japan. Chugai India's coordination role is what makes the MOU operational rather than aspirational.

Joint participation at a Japanese trade show in September 2026

To kickstart the commercial side of the collaboration, TCR and Chugai will jointly exhibit at a major Japanese industrial inspection trade show in September 2026. The two companies will showcase a combined solution offering covering reformer tube inspection, drone-based structural inspection, materials testing, scale checking, and environmental testing. This is the first concrete public commitment under the MOU and a useful early indicator of how the joint go-to-market will play out.

Quotes from the leadership

"Chugai Technos and TCR Engineering share something rare in our industry: a fifty-year operating record, a family-rooted ownership structure, and a conviction that the right way to build inspection business is to invest time in customer relationships. India and Japan are aligned at the political level on technology, supply chains, and infrastructure. This MOU is our way of translating that alignment into operational capability for asset owners in both countries and across Saudi Arabia." Rohit Bafna, President, TCR Engineering

"TCR's technical depth in materials testing, fatigue, fracture mechanics, and reformer tube inspection is exactly the capability our Japanese clients are looking for. We are equally pleased to bring our drone inspection, Scale Checker, and environmental testing services to Indian and Middle Eastern asset owners through TCR's network. Both companies have built their reputations on hard work and customer trust over decades. We expect this MOU to deliver real project value to clients in both regions." Hideki Sato, Director, Tokyo Branch and International Business, Chugai Technos Corporation

What this means for asset owners

For Indian high-speed rail, metro, power, and refining clients, the MOU adds a Japanese-grade environmental testing and drone inspection capability to the services already available through TCR's Mumbai laboratory, Eastern regional facility in Bhubaneswar, and Northern regional facility in Gorakhpur. For Japanese petrochemical, ammonia, refining, and infrastructure operators, the MOU opens access to TCR's reformer tube inspection, sour service corrosion testing, fatigue and fracture work, and failure investigation. For Saudi Aramco, SABIC, SWCC, and the broader downstream sector, the MOU brings two specialty capability blocks (drones and Scale Checker) into a market they already serve through TCR Arabia.

Closing

The TCR Engineering Chugai Technos MOU is non-binding and project-based, with each engagement to be governed by a separate work order or project agreement. The collaboration is non-exclusive, which preserves both companies' freedom to work with other partners. Both sides have, however, committed to invest the time, headcount, and technical effort needed to make the alliance operational. The MOU runs for two years and may be extended by mutual agreement. It is signed at a moment when India and Japan have rarely been more aligned on industrial cooperation, and when asset owners across both countries and Saudi Arabia stand to benefit from the TCR Engineering Chugai Technos MOU.