The next wave of investment in Andhra Pradesh-based Sri City special economic zone (SEZ) could be from the electronics segment, according to its co-founder and Managing Director Ravi Sannareddy.
“There is a lot of interest from companies in the electronics space. Besides Malaysian electronics giant Proton, there are a couple of firms that have shown interest, one being from China,” Mr. Sannareddy said.
He said the SEZ would triple its capacity, besides reaching its full scale with 300 firms, and attracting huge investments in the coming years.
At present, the SEZ is housing over 100 companies and attracted Rs.12,500-crore investment commitment as well as 20,000 jobs. Global corporate majors such as Cadbury, Isuzu, Alstom, Colgate Palmolive and PepsiCo are already present in the SEZ. The total investment realised so far was over Rs.6,500 crore, and it would reach Rs.12,500 crore once the companies were developed in full scale in the coming days, he said.
Italian steel equipment major Danieli has invested Rs.750 crore in the SEZ. French transport equipment firm Alstom has a Rs.500-crore investment commitment. It is expected to roll out its first train set for Chennai Metro in 2014.
Exports from the SEZ had also registered a steady growth at Rs.235 crore in 2012-13 against Rs.144 crore in 2011-12. Shipments in the first half of this fiscal had crossed Rs.175 crore. “We can easily cross Rs.340 crore in terms of exports this fiscal. Total imports of raw material are close to Rs.466 crore,” Mr. Sannareddy said.
The promoter group of the 7,500-acre SEZ, which included Peepul Capital, had invested over Rs.1,000 crore. The next stage of development at the SEZ might see a captive power plant and other social infrastructure, the Managing Director said.