Sri City, Surpassing the Auto Cluster in TN

[BabuRa0]

The new auto and mobile manufacturing hub at Sri City is slowly progressing towards establishing a solid ground. AP’s integrated business region had been seeing a steady momentum with the arrival of Foxconn plant. Sri City is located approximately 55 kilometres from Chennai, and is proving to be a strategic and cost effective location for the foreign players.

Tamil Nadu is now seeing a great competitor in Sri City, directly overtaking its auto cluster reach. CM Chandrababu Naidu has heavily banked on the potential of the business hub, going all in to pitch it to the world. The recent launch of Isuzu Motors in the region, inaugurating a massive facility worth Rs 3000 Cr has set the pace to another level. The prospects with Hero MotoCorp laying its own Rs 3000 Cr facility along with the setting up of Crane giant Kobleco has given an all new thrust to the city.

The world is now closely watching the progressive tide coming into the integrated City that speaks of world class quality.

Tamil Nadu was the first state that could have lapped up the facilities of Isuzu and Mahindra & Mahindra, but lost out to the new state of Andhra Pradesh. The same could be said for Karnataka, which cleared the way out to Hero with a 500 Cr expanse, but again lost to Andhra Pradesh. This proves the potential and scope for Sri City to break all the barriers and emerge as India’s top destination business hub.

The Naidu Factor

Brand CBN continues to be the key force during the decision making process for most of the investors. This was lately accepted and affirmed by Masanori Katayama, President, Isuzu Motors India. Katayama stated that he was impressed with the infrastructure, connectivity and management of Sri City, not to forget the extended initiatives that were offered by CBN to the players. Naidu had offered road tax exemption for the Isuzu vehicles in the state, promising better amenities and business to the investors.

AP’s Reputation with the World

AP now stands as number two in India in terms of ease of doing business, ahead of both Tamil Nadu and Karnataka. There are other great aspects to doing business in Sri City, including favourable land cost, exhaustive power supply to the suppliers and the OEMs, great connectivity via port as well as airport, and convenient labor environment.

AP Instead of TN – Reasons

There are several reasons why Andhra rules the roost now with bringing in investments into Sri City.

• Tamil Nadu still is way behind in lines with power availability and OEM suppliers.
• AP directly offers a subsidy of 75 Paise per unit of electricity consumed.
• CBN brand factor continues to cast a positive impact on the lucrative investors who are now looking at the new state of AP under the microscope.

[TOM_BHAYYA]

sambar batch ni cross chesi india autohub avvali AP

 

[rrc_2015]

#ditto maagavale 

[BabuRa0]

Sri City an emerging hub for FMCG firms

 

Three years ago, when US beverage and food maker PepsiCo decided to set up its largest factory in India at Sri City, near the Andhra Pradesh-Tamil Nadu border, eyebrows weren’t raised at its decision to do so. The multinational, in fact, was following a variety of companies that had already made similar commitments.

One of these was Mondelez, the US-based snacks multinational, best known in India for its Cadbury brand of chocolates. Last week, Mondelez inaugurated the first phase of its largest plant in the Asia-Pacific region at Sri City, fulfilling a commitment it had made three years earlier.

The east coast of Andhra Pradesh, led by the integrated township Sri City, has emerged as a hub for fast moving consumer goods (FMCG) and food companies. Mondelez, PepsiCo, Kellogg’s, Colgate-Palmolive and a host of other global and domestic food & FMCG firms have already committed nearly $1 billion (about Rs 6,600 crore) in investment at Sri City alone, say officials of the integrated township.  An additional nearly $1 bn of commitments by companies have been recently signed, Andhra Pradesh’s mines and food processing secretary Girija Sankar said. He says most of these are in the food processing sector.

Just outside Sri City, another bunch of companies such as ITC, Britannia, Heritage Foods, Godrej Agrovet and Godfrey Phillips have either set up their units or are in the process of doing so. Even Baba Ramdev’s Patanjali Ayurved is considering manufacturing units in Andhra Pradesh, sources in the know told this newspaper. The likely location could be Sri City, though this could not be confirmed from Patanjali.

Sri City officials say the interest shown by companies is due to a combination of factors, such as good location, state-of-the-art facilities and subsidies. “What companies are looking out are water, land, power and connectivity. Sri City offers all of this. Other advantages include ease of doing business and proximity to all the southern markets. All of this makes FMCG majors want to set up base here,” says Ravindra Sannareddy, managing director of Sri City.

Companies endorse this view. Daniel Myres, executive vice-president, integrated supply chain, Mondelez International, says infrastructure, talent and government support are the key reasons behind their investment here. PepsiCo India's chairman & chief executive, D Shivakumar, says Sri City is ideally located. It offers a great opportunity to harness the benefits of superior connectivity, great infrastructure and an ample talent pool, requisites for a business. “The new beverage facility at Sri City is a key part of the company’s growth plans for the Indian market and we are delighted to locate it in Andhra Pradesh,” he said.

Yoshihiro Miyabayashi, managing executive officer and director of Japanese major Unicharm Corp, maker of the Mamy Poko brand of baby diapers, says it opted for the place due to its connectivity to airports and sea ports. “This will facilitate imports and exports,” he says. Unicharm set up the first phase of its Rs 250-crore production unit in Sri City last year and is on the way to completing the other phases. This is the second manufacturing unit for Unicharm in eight years, after its first one was set up in Majrakath, Rajasthan.

Sri City, say sources in the know, has benefited from Andhra Pradesh’s long coastline and its proximity to ports such as Krishnapatnam inside the state and to those outside of it such as Ennore and Chennai in Tamil Nadu. Parallely, it has access to the Chennai and Tirupati airports, as well as National Highway-5 and the railway network, they add.

Additionally, the Andhra government has given business a fillip by linking two of the biggest rivers, Godavari and Krishna, to the city, major sources of water for companies located there.

Sankar says the state now plans to set up food parks in every district, to attract investment from food processing companies. It is also setting up Food Producers Organisations, which will act as a single-point contact for FMCG companies keen to produce raw materials in the state.

[BabuRa0]

Cadbury makes sweet foray into Sri City

Chandrababu Naidu eyes top slot in ease of doing business by the end the current fiscal

The Andhra Pradesh government has set its sights on achieving the first place in the country in the ease of doing business parameters of the World Bank by the end of the current financial year.

Chief Minister N. Chandrababu Naidu said the State was presently ranked second in the country next only to Gujarat in ease of doing business and the government had focused its attention on taking it to the top slot by the end of the fiscal. Andhra Pradesh was lagging behind Gujarat and Maharashtra in terms of foreign direct investment and was able to attract US $ 6 billion compared to US $ 8 billion of Maharashtra.

“My government is focussed on ensuring that the State occupies one of the two top slots in the coming days and we are vigorously pursuing the matter,” he said. The Chief Minister was speaking after formally inaugurating the first phase of the Mondelez International's manufacturing plant here on Monday. The US $ 190 million project had an installed capacity of producing 60,000 tonnes employing 400 people. The number would be scaled up to 2.5 lakh tonne and 1,600 in the coming three to four years. Mr. Naidu said the government had decided to promote accelerated industrial development as also concentrate on leveraging the full potential of agriculture sector as it would propel the service sector generating huge employment. This was crucial for the newly-formed State that inherited a few problems on account of bifurcation and fuelling industrial and agricultural growth was the lasting solution to overcome these problems.

In this context, he wanted the management of the Sri City to work hard for attracting at least 15 units every quarter and make it the best place for investments and work. The Sri City industrial corridor presently had 80 units operating from it with an estimated investment of Rs. 23,000 crore and generating 35,000 jobs.

Tri-city industrial corridor

To accelerate industrial growth, the government had decided to develop a tri-city industrial corridor involving Nellore, Tirupati and Chennai besides ensuring that the government played an active role in providing skill development to aspiring youth. Mr. Naidu, however, had a word of caution for the youth advising them to maintain discipline at work place.

“This is essential as any indiscipline including the union activity will adversely impact the investments. I am sparing no efforts to attract investments from across the globe and these efforts will get a boost if the aspiring youth behaved in a disciplined manner,” he said.

Mendelez International executive vice presidents Daniel Myers and Maurizio Brusadelli said the company had crossed a major milestone in the launch of the Sri City plant. The new plant, the seventh in the country and the largest facility in the Asia Pacific, would become multi-category food campus in the subsequent phases. The company would continue to invest behind the brands, routes to market and people to drive sustainable growth.

“We are investing today and building the capacity for tomorrow,” Mr. Brusadelli asserted.

 

[BabuRa0]

sri city dagra real estate ela undho idea undha?

[BabuRa0]

22 minutes ago, rrc_2015 said:

#ditto maagavale 

[bhaigan]

34 minutes ago, TOM_BHAYYA said:

sambar batch ni cross chesi india autohub avvali AP

 

kastam bhayya.....China vallu laga baga pathukupoyaru vallu  in manufacturing I mean Sambar batch

[sampangi]

35 minutes ago, rrc_2015 said:

#ditto maagavale 

 

[Chanti_Abbai]

Ditto

[ARYA]

Thank you rajanna

[ARYA]

45 minutes ago, TOM_BHAYYA said:

sambar batch ni cross chesi india autohub avvali AP

 

ila cool ga koseyatam ekkada nerchukunnav vuncle 

[Buttertheif]

lol langas

[Rendu]

13 hours ago, rrc_2015 said:

#ditto maagavale 

[RamanaReddy]