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Despite Telangana issues, AP attracts $2 bn worth of investments in 18 months

Investment by companies across sectors including FMCG, OEMs

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T E Narasimhan Chennai
Last Updated : Jan 29 2014 | 10:43 AM IST
Despite the political turmoil in Andhra Pradesh due to the Telangana issue, the state managed to attract over $2 billion worth of investments in the last 18 months across sectors.

Speaking on the sidelines of bhoomi pooja ceremony for the Rs 3,000 crore Isuzu's plant at Sri City SEZ on Tuesday,  Andhra Pradesh Principal Secretary (industries), K Pradeep Chandra said, "in the last 18 months the State has attracted investments to the tune of around $2 billion, across sectors ranging from FMCG, automobile and others".

Some of the major investments include Isuzu's investment of Rs 3,000 crore, MRF's investment for its expansion plan with an outlay of Rs 900 crore and US healthcare major Hospira's investment to the tune of Rs 1,500 crore.

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The state also attracted FMCG brands including Johnson & Johnson, which is planning to invest around Rs 450 crore to set up a manufacturing facility. PepsiCo (Rs 1,200 crore), Cadbury (Rs 2,500 crore), Colgate, Gerdau Steels and ITC (expansion), Greenply Industries (Rs 2,000 crore), Berger paints (Rs 350 crore), Century plywood are some of the other major investments, which Chandra listed.

He also said that the state is looking at attracting automobile OEMs.

"First we need to attract suppliers, the state is looking at developing series of supplier clusters across the State," said Chandra, adding that the state is planning to create a 100 acre supplier park at Zaheerabad.

So far 16 companies have shown interest, of which 3-4 companies have already started operations, he said.

Chandra said that bringing in supplier base also means attracting large chunk of investments. For instance, as part of Phase I, Isuzu Motor is planning to invest Rs 1,500 crore, but their suppliers would invest Rs 3,000 crore.

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First Published: Jan 29 2014 | 10:23 AM IST

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