Englishman Roger William Nute was not very familiar with the environs of Chennai when he landed here. An expert in building solar equipment manufacturing plants and as such, his job takes him to wherever his company, Centrotherm Photovoltaics of Germany, has work.

So, when he came to help Centrotherm's client, Shan Solar, to set up a PV module plant in the emerging industrial estate of Sri City, some 55 km north of Chennai, his first reaction upon learning where the glass panels came from was one of awe-filled surprise.

“From literally down the road!” he exclaimed to Business Line on Monday. Apparently, the surprise has not yet worn off.

Glass for Shan Solar's modules is trucked down a straight road that connects Sri City to Saint-Gobain's glass plant in the industrial township of Sriperumbudur.

When Shan Solar's Rs 80-crore module plant begins production next month, it will ship 30-MW worth of equipment to Europe, using most probably, the nearby Ennore port for that purpose.

Sri City's USP

Sri City, with fully developed infrastructure and its location in the State of Andhra Pradesh (where power is available and cheaper than Tamil Nadu) has emerged as an alternative site for foreign investments flowing into the region. In the last three years of its existence, it has attracted investments worth Rs 1,500 crore, from over 50 companies, most of them from abroad.

Its USP includes proximity to three ports – Chennai, Ennore and Krishnapatnam – as well as to the industrial ecosystems near Chennai, notably Sriperumbudur and Oragadam.

Attracting companies

Nothing exemplifies this better than the case of the French car manufacturer, Peugeot, which is evaluating sites in Sri City and Oragadam for putting up a car plant.

A similar hunt was made by Peugeot's compatriot, Alstom, which finally chose Sri City for its metro rail coach plant. Incidentally, Alstom's anchor customer is Chennai Metro Rail Ltd, which has placed on it an order worth Rs 1,470 crore.

Several other companies are said to be recce-ing sites on either side of the Tamil Nadu border—including, the US-based First Solar and Royal Enfield of the Eicher group which makes Enfield motorcycles.

But truly, as much as it is a competition to Tamil Nadu, Sri City is a complement too—as the example of Shan Solar shows. Any activity in the zone benefits the region as a whole.

The Ennore and Chennai ports are likely to benefit a big time by investments that come into Sri City. Take the case of Kobelco Construction Equipment. The company has put up a Rs 45-crore plant in Sri City to make earth moving equipment (crawler excavators). It imports engines and hydraulics from Thailand—through the Chennai port.

Incidentally, Kobelco is planning a Rs 100-crore expansion, to double the capacity and increase the product range, according Mr Deepak Kacker, Head – Factory Operation, Kobelco Construction.

Following the example of Kobelco Construction, a group company that produces cranes, has also set up shop in Sri City. Both companies get their non-imported components from units in nearby Tamil Nadu.

On track

Sri City's promoter, Mr Ravidra Sannareddy, who points out that the zone is a part of the industrial landscape of the region, says that it is on track to attracting the targeted investments of Rs 10,000 crore.

He says that several large multinationals have been looking at sites in Sri City, but is bound by agreement not to reveal their names.

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