Multiple developments on the new corporates / businesses looking closely at Andhra Pradesh have been surfacing day after day giving hope to its citizens of a better future. While some of these are directly related to “emotional connect” of Seemandhra businessmen wanting to chip in with some work in their home state, others are a direct result of a pro-active government.
Economic times reports as following. “The Andhra Pradesh government is wooing expat Indian businessmen to give the initial push to its plan of developing Vizag into an information technology hub.Nearly 16 US-based small and medium enterprises in the IT and IT enabled services sectors are planning to begin operations in the region by the end of 2014. These companies, which mostly run their offshore operations in cities across India and have revenue ranging from $20 million to $100 million, are banking on government incentives to return the favour.“This goes beyond the purview of business“ and “has an emotional connect to the state“ as the US has a large number of entrepreneurs from Andhra Pradesh, says B Sriram, tax partner at Ernst & Young. “Though that is the significant pull factor, the fact that Vizag is the only city with some infrastructure in the state makes it a favoured destination.“ Though an appeal has been made to the NRI audience, according to him the bigger players are yet to make a move. “Once the tier-1 players move, it will attract tier-2 players as well.“
Meanwhile Nellore is dressing up for a bigger party. Already a nerve center of significant economic activity, this town and its hinterland can expect better days ahead.
The Indian Farmers Fertiliser Cooperative (Iffco), the world’s largest fertiliser co-operative federation, has evinced interest in setting up a facility to make titanium sponge and other products in Andhra Pradesh’s Nellore district.Iffco has an operational special economic zone (SEZ) spread over nearly 2,780 acres in Nellore. It has agreements with several agriproduct firms for units there, including New Zealand’s Fonterra for a large dairy project. The co-operative body proposes to set up the titanium products facility over 400 acres in the SEZ. The project, with a planned initial capacity of two lakh tonne a year, involves an investment of `2,500 crore.
Titanium products, made from raw materials extracted from beach sand, are used in aerospace, defence and other industrial sectors. AP, which has a coastline of 972 kilometres, has huge sand beach resources. India is estimated to have some 400 million tonne of titanium reserves, accounting for a fifth of global deposits.Iffco MD US Awasthi met AP Chief Minister N Chandrababu Naidu last week with a proposal for the project. A senior Iffco official said the co-operative body proposes to rope in a large foreign player with expertise in titanium products as its joint venture partner.“We have identified huge business potential for titanium products in AP given its vast coastline and beach sand resources,” the official told ET, seeking anonymity.
Eenadu’s report on Nike shoe factory in Nellore
Meanwhile Eenadu reports that Nike, the global marquee brand in shoes, is all set for a debut factory in Nellore.