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Sri City, the 5,000-acre integrated business city at Tada to the north of Chennai, has launched ready-built factory space to attract Japanese small and medium enterprises.
It will offer ready-built factories measuring 5,000 sq. ft to 20,000 sq. ft for companies planning to set up manufacturing facilities at the SEZ in Sri City in Andhra Pradesh close to the Tamil Nadu border. Customised space of over 5,000 sq. m can also be provided, said Ravindra Sannareddy, Managing Director, Sri City. Over 20 acres has been earmarked for the modular factory space.
The business city has earmarked 300 acres exclusively for Japanese companies and is tailoring the specifications to the needs of Japanese investors. The area is also being expanded to 500 acres following the interest evinced by Japanese companies. All clearances will be in place and the investors will simply have to come in and set up shop. They can lease the space for Rs 12-15 per sq. ft. per month for a five-year period and have the option to buy the space. There are now more than 80 manufacturing units, of which 40 are in operation in Sri City, including 14 large Japanese companies, he said.
Japanese investors are keen on South India as it gives them access to the markets here and export to South-East Asia and other parts of the globe. However, the initial stages of setting up shop in India can be daunting for those unfamiliar with the systems here. Sri City has addressed this issue along with its ready built space that will offer plug and play option.
Shinya Fujii, Director-General, Japan External Trade Organisation in Chennai, said such ready-made factories were in vogue in Thailand, a major automobile industrial hub in South-East Asia. Over 36 industrial estates house over 2,000 such factories and the ready-built inventory is estimated at 1.76 million sq.m.
Insufficient guidance from local authorities, delay in statutory clearances are major issues that need to be addressed to encourage Japanese investments. Companies are keen on investing in South India, particularly Tamil Nadu, he said.
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