US-based SMEC to invest Rs 2,500cr in Andhra

Small & Medium Enterprise Consortium (SMEC), formed by a group of entrepreneurs from across the globe, will invest Rs 2,500 crore in Andhra Pradesh for providing thrust to SMEs, particularly those in the IT sector, in the state.

The investment by SMEC, which promotes sustainable development of small and medium enterprises, would generate 25,000 jobs directly and over 80,000 indirectly in the state.

"There are several entrepreneurs of Andhra Pradesh operating start ups to consulting units to global outfits in USA, currently, and most of them have offices in Hyderabad," New Jersey-based entrepreneur Mahendar Reddy Musuku, chairman, SMEC said.

"Each office has five to 200 employees and thriving with an aggressive growth plan. We have hence decided to set up a consortium so that these small and medium entrepreneurs will come together, develop and avail common facilities for a better and faster growth," he added.

As for the reason for selecting Andhra Pradesh, Musuku said Hyderabad and information technology have become synonymous.

"The infotech revolution has brought Hyderabad on the centre-stage and the brightest pool of talent is coming from here," he said.

On Tuesday, an SMEC delegation met the state Chief Minister Y S Rajasekhara Reddy, who appreciated their efforts and assured support and from the government. "We are confident our initiative will result in creating a major support tool for the IT industry in AP," Musuku said.