Promise of quick rollout draws many companies to AP

Our Bureau Chennai | Updated on January 28, 2014 Published on January 28, 2014

State focusing on benefits that large projects typically bring in

“You will go into commercial production faster” — that is the promise that draws mega-buck investors such as Isuzu Motors, MRF and Cadbury India, to Andhra Pradesh, according to K Pradeep Chandra, Industries and Commerce Secretary of the State.

Addressing media persons on the sidelines of Isuzu Motors’ ground breaking ceremony at Sri City in Andhra Pradesh, about 65 km north of Chennai, Chandra said Isuzu Motors’ ₹3,000-crore project had been cleared in six months and the ground work started in three.

The unit, with a capacity of 120,000 vehicles a year, will start producing LCVs and utility vehicles in April 2016.


The State Government is focussed on the benefit that large investments generate locally.

For instance, Cadbury India’s Rs 1,000-crore investment in Sri City, apart from the jobs, also means that nearly 5 lakh litres of milk daily will be sourced from the dairy farmers in Chittoor District and neighbouring areas; PepsiCo India is planning a beverage unit which will utilise the mango pulp from the local units; and these investments in Sri City will generate over 10,000 jobs, Chandra said.

Drawing Isuzu Motors’ investment to Andhra Pradesh strengthens the state’s position in the automobile industry.

Auto hub

Along with Mahindra & Mahindra’s tractor unit at Zaheerabad near Hyderabad and the 100-acre facility to house its suppliers, the proposed investment by the tyre manufacturer MRF — which has finalised plans to invest over Rs 900 crore to double its production capacity — the state is finally emerging as an automobile hub.

Andhra Pradesh has also been included in the ‘zone of influence’ of the proposed Chennai-Bangalore industrial corridor which will strengthen links to Krishnapatnam Port in Nellore district, which is about 275 km from Bangalore.

Toyota Motors in Bangalore and Isuzu Motors are keen on using the port facilities, he said.

Isuzu Motors has entered into an agreement with the Industrial Training Institute in Tirupati to provide advanced training course in automobile manufacturing.

Published on January 28, 2014
This article is closed for comments.
Please Email the Editor