Mukherjee was received at the Begumpet airport by Andhra Pradesh Governor E S L Narasimhan, Chief Minister N Kiran Kumar Reddy and other senior leaders.
President is slated to inaugurate the 'World Telugu Conference' at the temple town of Tirupati tomorrow.
Rashtrapati Nilayam is one of the two official retreats of the President of India, the other being 'The Retreat Building' in Shimla.
According to Rashtrapati Bhavan website, the buildings--one in North and another in South--are "indicative of the integrative role of the Office of the President of India in our country".
It is customary for the President of India to visit the Rashtrapati Nilayam and stay there at least once a year and conduct official business from the Nilayam.
The Nilayam was taken over from Nizam of Hyderabad after the country attained independence.
Located at Bolarum in Secundrabad, this 11-room single storey building, spread in over 90 acres, has been handed over to the President's Secretariat as per the convention.