Surge in investment proposals in AP
Investment proposals have been pouring into Andhra Pradesh, with the government receiving as many as 18 new investment proposals since June, 2012. Some of the proposals that have been received include those from Japanese based Isuzu Motors, West Pharmaceutical Packaging, a US-based company, Sumitomo Corporation of Japan, US Gypsum, Siemens, an expansion project by Proctor & Gamble,Japanese company Itochu Group and Johnson & Johnson. This information was revealed by the Chief Minister’s Office (CMO).
Isuzu Motors India Pvt Ltd, a wholly owned subsidiary of Japanese auto maker Isuzu Motots Ltd, plans to set up a light commercial vehicle (LCV) manufacturing plant in Chittoor district of Andhra Pradesh at an estimated cost of Rs.1,500 crores.The plant will have a capacity to produce 120,000 units annually at peak capacity. It is expected to commence operations towards the end of 2015. At maximum capacity, the plant can manufacture 80,000 units for the domestic market and export 40,000 units. This is the second major investment by an motor company in Andhra Pradesh. The first one was by Mahindra and Mahindra Ltd., when it opened its tractor facility in Medak district. The plant will employ 2,000 people initially and 6,000 at its maximum capacity.
West Pharmaceutical India Packaging Private Limited, is a subsidiary of West Pharmaceutical Services Inc in Lionville USA, and has started construction of its new compression molding manufacturing facility at Sri City in Chittoor district. Of the 72, 800 square meters of total land acquired by the company, the Phase-1 built up area for the manufacturing facility which is coming up, is spread over 15,300 square meters in the Special Economic Zone. Phase-1 of the project is expected to cost $30 to $40 million for the company. At present West Pharma holds about 70 per cent market share in India and serves a host of its high end customers that include clients like Glenmark, Dr. Reddy’s, Emcure, etc.
Chicago- based wallboard maker, USG Corp. will invest about $60 million over the next two years in partnership with the Zawawi Group of Oman to capitalize on growing demand for building products in India. The investment will provide new opportunities in the rapidly expanding Indian wallboard market.
A Memorandum of Understanding (MoU) was signed between Japan’s Sumitomo Corporation and the Andhra Pradesh government to set up an Integrated Industrial Utility Centre at the Special Economic Zone, near the port city of Visakhapatnam.
Procter & Gamble will soon operationalise one of its biggest manufacturing plants at Kottur in Mahbubnagar district, about 36 kms from Hyderabad. P &G India will be selling its products like Vicks, Tide, Ariel, Olay, Whisper,Gillette, Ambipur, Oral-B , Pampers, Head & Shoulders, Pantene and Duracell etc, from the Kottur plant by next April.
Some other multinationals like Johnson & Johnson, Cadbury’s and Siemens are in the final stages of talks with the state government on buying land and setting up plants in Andhra Pradesh.
Land acquisition, one of the major dilemmas that many states face in attracting investments from companies has not being faced by even a single company in Andhra Pradesh due to their smooth resolution.
A meeting was held by the Andhra Pradesh chief Minister, N Kiran Kumar Reddy and members of the AP Industrial and Infrastructure Corporation (APIIC). This was to ensure that companies allotted land by the state nodal agency would complete the units of the company for which the land was allotted in a speedy and time bound manner. As part of its move to attract investment from companies, the APIIC is developing 27 new industrial parks, which includes 3 exclusive parks for women entrepreneurs.
