Sri City and ELCINA (Electronic Industries Association of India) have signed up to develop an Electronics Hardware Manufacturing Cluster (ESDM Cluster) under the Central Government scheme.

This cluster will enable members of ELCINA and other electronics manufacturers to set up facilities to address the domestic and export market.

This cluster will consist of manufacturing units, mainly electronic component and parts manufacturers, raw materials and companies for electronic equipment.

Sri City, an integrated business hub located 55 km from Chennai, is now a host to over 80 industries from 23 countries. This includes special economic zones. It will provide 50 acres for the cluster in phase 1 and subject to demand, an additional 50 acres in phase 2.

T. Vasu, President, ELCINA, said, “The cluster model and policy announced by the Department of Electronics and IT, Government of India was proposed by ELCINA over three years ago and has come to fruition only now.”

He said in the next two-three years a investment support to the tune of Rs 500 crore is expected with about 40-50 small units likely to come up. This will be the third cluster to be developed under the national electronics initiative. The other two are coming up in Rajasthan and Uttar Pradesh.

With the demand for electronics estimated to reach $ 350-400 billion by 2020 resulting in a huge demand-supply gap met by imports, ELCINA is committed to bridging the same by encouraging local manufacturing.

Ravindra Sannareddy, Managing Director, Sri City, said, “With the cluster, many issues that plague this industry such as availability of infrastructure, power, transportation, and logistics have all been taken care of to a very large extent.” It would invest up to Rs 100 crore to develop the necessary infrastructure facilities for the proposed units to come up, he said

(This article was published on March 14, 2013)
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