About Andhra Pradesh Key Sectors

Automobiles and Auto Component Industry

Background:

A broad base of automotive component manufacturers and a large pool of highly trained, skilled and disciplined manpower make Andhra Pradesh the desired location for automobile industries. The automotive industry is not new to Andhra Pradesh. 

There are more than 100 automotive component manufacturing companies in the State, including first-tier suppliers and OEMs. They specialize in precision aluminium castings, high pressure die castings, forging, machined components, pressed metal components, gears, pistons, leaf springs, front axles, brake liners, cylinder liners, clutch covers, fuel filters, nozzles, delivery valves, starter motors, alternators, grey-iron, oils and lubricants, diesel fuel injection equipment, electronics /electrical, electronic regulators, CAD/CAM design, etc. Over half the cylinder liners and clutch plates in India are produced in Andhra Pradesh. 

For further details, please contact:
Principal Secretary & CIP
Industries and Commerce Department,
Government of Andhra Pradesh,
2nd Floor, D-Block, Secretariat,
Hyderabad-500 022.
Phone +91-40-23454449
Fax +91-40-23452985
E-mail prlsecy_cip_inds@ap.gov.in

Biotechnology

Biotech Policy:

·         The State Government wants the private sector to play an active role in  developing the biotechnology industry in the state.

·         The government would act as a facilitator and a catalyst in the development process.

·         Realizing the utility of this industry, the government announced its policy for the promotion of biotech units in the State.

Objectives of Biotechnology Policy:

·         To take up a detailed inventory of the bio-resources in the State with the help of universities, research bodies, NGOs and private agencies.

·         To promote conservation of bio-diversity and sustainable exploitation of bio-resources.

·         To develop high quality infrastructure with the required support services for manufacturing units by setting up specialized biotech parks in various parts of the State.

·         To facilitate the flow of venture capital funds and bank credit to biotech companies.

Focus:
Based on the industrial analysis of the Biotech sector and inputs from the industry experts, research organizations and academic experts, the Government of Andhra Pradesh has short-listed the following focus areas in Biotechnology.

·         Diagnostics

·         Therapeutics

·         Industrial Biotechnology

·         Inputs to the industry (hardware suppliers – Instrumentation and Chemicals)

·         Agricultural Biotechnology

Andhra Pradesh, specially Hyderabad has several pioneers in the area of Medical/Human and Animal Healthcare. Biotech companies like Shanta Biotechnics, Bharat Biotech, Krebs Biotech, Biological E Ltd., Jupiter Biosciences and Dr. Reddy’s Laboratories among others. This goes on to prove the unique advantage of the State in the area of Pharma-related Biotech.

Government of Andhra Pradesh, in collaboration with the Industrial Credit and Investment Corporation of India (ICICI) Limited, has set up a Knowledge Park near Hyderabad.

Genome Valley
The State Government has declared an area of 600 square kilometres covering the mandals of Shameerpet, Medchal, Keesra and Uppal mandals in Ranga Reddy district as the Genome Valley in which biotech activities will be encouraged and promoted.

ICICI Knowledge Park
The State government in collaboration with the Industrial Credit and Investment Corporation of India (ICICI) Limited, has set up a Knowledge park near Hyderabad.

The ICICI Knowledge Park is a 200-acres facility, providing organizations with ready-to-occupy research and development laboratories. The park also provides infrastructure to small and medium scale enterprises at affordable prices. The ICICI Knowledge Park will also house a Biotech Knowledge Centre. A Biotechnology Park is being set up adjacent to the existing ICICI Knowledge Park. This 160-acres park will help small and medium enterprises (SMEs) to set up their manufacturing units

i) Agri Biotech Park at ICRISAT: An area of 200 acres has been earmarked for Agri Biotech Park at ICRISAT campus and a MOU has been signed between the Secretary to Government of Andhra Pradesh (I & C Dept.) and Director General, ICRISAT. A firm called AQUAS has already started functioning for the establishment of the Park.

ii) Marine Biotech Park, Visakhapatnam: 218 acres of well developed land has been allocated for Marine Biotech Park (MBP) in Visakhapatnam. Two firms - Biogenus and Celgen - have already been allotted the required land. Many more companies are showing interest to take up ventures in the Marine Biotech Park. 

For further details, please contact:

Secretary (SSI),
Department of Industries and Commerce,
Government of Andhra Pradesh,
2nd Floor, D-Block, Secretariat,
Hyderabad - 500 022.
Phone: +91 - 40 -23450508 / 23540456
Fax: +91 - 40 -23450456

Chief Executive
Shapoorji Pallonji Biotech Park Pvt. Ltd.,
No. A-2, 1st Floor, Lane-1,
Street No. 3,
Indian Airlines colony, Begumpet,
Secunderabad – 500 003, 
Andhra Pradesh
Telephone: +91 - 40 -27902009
E-mail: dhawasuresh@rediffmail.com

Tourism
Background:

Andhra Pradesh is rich in its Historical Monuments. It possesses many holy temples with architectural beauty, which attract large numbers of pilgrims and tourists from all over the world. The main tourist attraction are the world famous Salarjung Museum, Charminar, Golconda Fort, Nagarjuna Sagar, Simhachalam, Araku Valley, Tirupati, Srisailam, Bhadrachalam, Lepakshi, Amaravati, and the Thousand-Pillared Temple in Warangal. Andhra Pradesh has it all -beaches, hills, wildlife and forests, forts, temples, Buddhist sites, bird sanctuaries and much more. 

In order to facilitate the Tourism Department, the Government of Andhra Pradesh has adopted an investor friendly, open door policy for the investors, with the State Tourism Promotion Board. It has approved of the idea for a one-stop clearance body which will be headed by the Chief Minister. The Government is setting up two companies-one to raise capital for tourism projects and the other to facilitate joint ventures. Investors are assured of a co-operative Government and transparent administration.

The variety of tourist attractions include:

  • The convention and heritage tourism

  • Sea and inland water cruise tourism

  • Pilgrim Tourism

  • Health tourism

  • Buddhist circuit and Buddhist sites

  • Science and technology tourism

  • Beach tourism

  • Eco tourism

  • Leisure tourism

  • Wild life tourism

  • Adventure tourism

  • Fairs and Festivals and

  • Rural / Village tourism

For further details, please contact:
Secretary to Govt.,
Tourism & Culture Department
221A, I Floor,
D Block, Secretariat
Hyderabad – 500022
Tel: +91 - 40 -23456717 / 23450079
Fax: +91 - 40 -23450068, 23454966 
Email: aptourism@hotmail.com
Website: www.aptourism.in

Drugs & Pharmaceuticals

Hyderabad, which accounts for around one third of India’s total bulk drug production, is considered as the bulk drug capital of the country. A large number of bulk drug units are located in and around Hyderabad with good infrastructure and trained manpower. The Indian pharmaceutical industry is large and rapidly growing. The pharmaceutical industry in India is expected to grow from $ 5.5 bn to $ 25 bn by 2010 and $ 75 bn by 2020 and create 1.8 million additional employment, US $12-13  bn exports and US $ 4-6 bn investment for the country.

Skilled Human Resources 
 State offers excellent opportunities for the growth of the pharmaceutical industry  in the country due to availability of trained and skilled manpower research and development facilities, including the Indian Institute of Chemical Technology, CCMB, NIN, CDFT and many universities. In addition to this, to develop human resources  required for the innovation led growth, Indian Institute of Life Sciences (IILS) will be set up at Manikonda village in Hyderabad in collaboration the industry, the Government and research institute. 

 Pharma City
The State Government has taken a decision on the establishment of a ‘Pharma City’ near Visakhapatnam with private sector participation. The industrial area at Parawada in Visakhapatnam has been identified for the development of world class infrastructure facilities. The Andhra Pradesh Industrial Infrastructure Corporation (APIIC) has acquired 2200 acres for this city. The salient features of this city are:        

     The Salient Features of Pharma City

  • Environmental protective measures  

  • Single window clearance  

  • Facilities for Indian/Global MNCs to set up their JV/100% manufacturing units.

This project will have common integrated facilities for effluent treatment/ waste handling and disposal with a pipeline running into the deep sea as per the international norms. It will provide the telecommunication infrastructure, assured water and power supply, airport and seaport. 

 Formulations Estate: The Government will also set up two formulations parks, one close to Hyderabad and the other an EPZ, possibly close to the bulk drugs estate. These parks will be provided with assured power and water supply, good roads and telecommunications facilities. The EPZ will be connected to the Vizag Airport/ port by a highway and share the Pharma City air travel infrastructure. 

Pharma Development Fund: A Pharma Development Fund of $ 10 bn is to be created with the contributions from the centre, the State Government and the industry. 

Task Force on Pharma: The AP Chief Minister’s Task Force on Pharma has been set up with the Chief Minister as Chairman, Major Industries Minister as Vice-Chairman and experts from all over the country and eminent industrialists as its members. The task force will deliberate upon the strategies to make the State forge ahead in the pharma sector. 

For further information, please contact:
Principal Secretary & CIP
Industries and Commerce Department,
Government of Andhra Pradesh,
2nd Floor, D-Block, Secretariat,
Hyderabad-500 022.
Phone +91 - 40 -23454449
Fax +91 - 40 -23452985
E-mail prlsecy_cip_inds@ap.gov.in

 

Food & Agro based

Andhra Pradesh produces over 9.57 million tones of fruits, vegetables and spices and has set a target to produce 22.90 million tones by the year 2020. Andhra Pradesh is the second largest producer of horticulture produce with 1.24 million hectare area under cultivation. 

Marine Food: The State’s 1,000 kilometer coastline, 8,577 kilometer river length and 102 reservoirs spread over an area of 2.34 lakh hectare have been the principal sources of its marine foods, fresh water foods, including fish and prawn. The total value of marine exports from India is Rs.64 billion. Andhra Pradesh contributed Rs.22 billion to this and is further enhancing its exports.

Poultry: Andhra pradesh is the largest egg producer in India, producing 35 million eggs a year. A common facility for egg washing, grading and packing is being set up near Hyderabad. 


Agri export zones 
 The Agri export zones act as a gateway to the vast opportunities in the international market. These zones take a comprehensive look at specific produce/product for development and sourcing the raw material, their processing/packaging, leading to the final export by integrating an end to end approach. 

The Government of India, in association with the State Governments, has identified 28 Agri export zones in 21 states. A total investment of Rs.1325 crores million is planned. 
The State has identified five Agri export zones in different districts with specific produce. 

The Chittoor AEZ envisages a total investment of Rs. 91.4 crores by private entrepreneurs, Government of Andhra Pradesh and the Government of India. The other AEZs are being developed jointly by the State and Central Governments with an investment of Rs.95.15 crores. Work on AEZ Chittoor commenced with model agency APIIC conducting a work in August 2002. 

Food Parks 
The State shall take the initiative in setting up a series of food parks in the State, starting with one in each of the three main regions – Telangana, Andhra and Rayalaseema.

·         For Telangana Food Park - processing of poultry products/ processing of coarse grain & millets/ spices (Chillies & turmeric)

·         For Coastal Andhra Food Park value added rice products/ dairy products/ horticultural products/ marine products/ labour oriented, export oriented industry.

·         For Rayalaseema Food Park processing of vegetables onion, tomatoes/ fruits/ spices, etc.

For parks can be set up as a joint venture between government/ government agency like APIIC and a private sector partner from the segment. 

For further information, please contact:
 Agri Production Commissioner & Principal Secretary  
Department of Agriculture,
Government of Andhra Pradesh,
1st Floor, D- Block, Secretariat
Hyderabad-500 022.
 Phone: +91 - 40 -23452263
Fax: +91 - 40 -23457086

Information Technology

Background

  • The Government of Andhra Pradesh has identified Information Technology (IT) as one of its major growth engines that would catapult the State into the future.The State has recognized that IT shall play a significant role in achieving its policy objectives like economic development, enhancing the quality of life, and providing good governance to its citizens.

  • Andhra Pradesh has been able to achieve above 100 per cent CAGR (Compounded Annual Growth Rate) in the IT exports during the period 1992-2000.   


  • All this has been possible due to abundant availability of highly skilled IT manpower, World class technical and social infrastructure, and a pro-active Government. 

·         Existence of world-class institutes such as the Indian School of Business having tie ups with Wharton, Kellogg, the London School of Business, and the International Institute of Information Technology (IIIT) to meet the demands for highly qualified managerial and technical talent.


Investment Opportunities 

1.1 Software Development  

     ·             Opportunities exist in the form of offshore development, domestic markets
          besides the huge opportunities provided by the major e-governance initiatives of
          the Government.

1.2 IT-enabled services:

     ·             IT-enabled services are business processes and services performed or provided from a location different from that of their end users or beneficiaries and are delivered over telecom networks and the Internet.

     ·             The State of Andhra Pradesh presents a gateway to the thriving IT-Enabled Services (ITES) opportunity, estimated to reach US $ 500 billion globally by 2008. During the year 2002-03, the ITES exports from A.P. were recorded at Rs.14110 million (U.S. $ 300 million). ITES exports have grown by 104% during 2002-03 compared to the national average of 65%

    ·              The State government has initiated various reforms, and put in place investor and industry-friendly policies to enable rapid growth and development in IT sector.

    ·            ITES majors such as GE Capital, HSBC and Dell have located significant ITES
operations in Hyderabad.

    ·               The city of Hyderabad has been attracting world-wide attention as the leading ITES destination and the place where global companies have chosen to establish their offices.

    ·               The Government of Andhra Pradesh is strengthening ITES sector by taking several initiatives to make available (a) Skilled manpower, (b) High quality infrastructure, (c) Conducive regulatory environment.

     ·              Training courses in ITES (IT - Enabled Services) are provided in the form of alliances with reputed Universities in the state including Shared training facilities and infrastructure at subsidized costs.

    ·               Andhra Pradesh offers infrastructure of a global standard to support the ITES sector.

    ·               The Government has initiated a number of proactive measures and reforms, which include self-certification, ease in setting up the ITES facility, providing investment subsidy, making available land at subsidised rates etc.

    ·               It has put in place an interface to facilitate the start up process and help ITES companies in obtaining Government approvals. This interface will have the authority to get all State Government approvals on a time bound basis. The ITES companies will interface with assigned account managers, who will take care of all the requisite approvals.

     ·              The Government has amended the existing State laws, notably the AP Shops and Establishments Act, to make them more suitable for ITES companies.

     ·             The government has engaged M/s. McKinsey & Co. to help the state to evolve a highly focused policy for the development of IT enabled services. This exercise is expected to begin to yield results during the year 2003 onwards.

For further details, please contact:
 Principal Secretary
Department of Information Technology & Communications
Govt. of Andhra Pradesh
III Floor, D Block, Secretariat 
Hyderabad 500 022, India
Phone: +91 - 40 -23456401
Fax : +91 - 40 -23450103
E-mail: prlsecy_it&c@ap.gov.in
 Website: www.apit.gov.in

Mines & Minerals

Opportunities in Mining:
 Andhra Pradesh is the second largest store house of Mineral Resources in India.  A total of 48 minerals were located with vast explored resources of coal, limestone, slabs, etc. and good resources of oil and Natural Gas, Manganese, Asbestos, Iron Ore, Ball Clay, Fire Clay, Gold Diamonds, Graphite, Dolomite, Quartz, Tungsten, Steatitic, Feldspar, Silica Sand etc.

The State stands second in value of mineral production, contributing 8 percent (Rs.4857 Crores) of the country's mineral value production of Rs. 59509 Crores and approximately Rs. 634 Crores by way of foreign exchange. It produces about 70 million tonnes of industrial minerals and 8 million cubic metres of dimensional stones and building material, contributing nearly Rs. 770 Crores to the state exchequer.

The State stands fourth in Mineral value of production, contributing 7 per cent (Rs.4030 crores) of the country’s mineral value of production of Rs.56807 crores and approximately Rs.498 crores by way of foreign exchange.  It produces about 66 million tonnes of Industrial minerals and seven million cubic meters of dimensional stones and building material contributing nearly Rs.665 crores to the State Exchequer.

The State has identified the mining sector as one of the growth engines for the overall development of industry and infrastructure.  With its vast explored mineral potential and natural infrastructure, forms a natural opportunity for investment and development of minerals and mining projects.  The State envisages mineral projects with the participation and investment from the private sector. 

Opportunities Galore :
Rich reserve of minerals are awaiting exploitation with Private Sector investments in the following fields :

Bauxite

  • 700 million tonnes of metal grade Bauxite deposits in close proximity to Visakhapatnam Port.

  • Opportunity available for establishing an Integrated Bauxite Mining, Manufacturing Alumina / Aluminum Plant.

Gold & Diamond

  • Gold occurs in 11 districts and Diamond is found over 50,000 sq.kms in 9 districts.

  • Opportunities for exploration and exploitation of Gold and Diamond.

Beach Sands

  • 16 stretches containing good deposits of Ilmenite, Rutile, Zircon, Garnet have been identified along the East Coast.

  • Opportunities available for Beach Sand Mining, Mineral Separation and setting up of Titanium dioxide and Synthetic Rutile Plants, etc.

Granite

  • Worldwide known Galaxy Granite, Srikakulam Blue, Warangal and Khammam Black, occur in abundant quantities.

  • Opportunity available for developing a Granite Park in joint ventures.

Ceramics

  • Largest source for various Clays, Feldspar, Quartz, Silica Sand, Rare Earths (Titanites / Zirconites) for the manufacture of ceramics.

  • Opportunity available for development of advanced ceramics like Electro and Mechano Ceramics.

Mineral Based Industries:
Andhra Pradesh with varied geological formations, contain rich & variety of industrial minerals and building stones.  It is historically known for mineral potential and repository for future exploration.  The state is known for large exclusive deposits of Barytes and Galaxy granite in the international market.  Minerals like coal, oil and Natural gas, barytes, Limestone, diamond, gold beach sand bauxite, ball clay fire clay, dolomite, dimensional stones etc are still under tapped or untapped.

Andhra Pradesh is an important destination for host of minerals in the entire southern India.  The wide variety of mineral produce from the State is being traded or consumed in Power, Metals, Alloys, Cement, Chemicals, Paint, Cosmetic, Glass, Ceramics, Refractory, Refinery and manufacture of various down stream industries.  The mineral produce from the State cater a wide range of industries and have potential for expansion and development of new industries.

 Natural Gas - The Preferred Fuel
Natural Gas is rapidly emerging as the preferred fuel all over the World as well as in India since it is more environment  friendly, convenient to transport and use and has several techno-economic advantage. The share of gas  in the World energy mix is at present 23 percent, while that of oil is 40 percent. Thus, 63% of world energy comes from hydrocarbons. In India, hydrocarbons account for 44.4% of energy mix, 34% by oil and 10.4 percent by natural gas. Though natural gas was initially used as a petro-chemical feedstock, it is now used in the fertilizer, industrial, power and domestic sectors and more recently, in the transport sector.

Recent Spectacular Discoveries Of Gas
With continuous surveys and offshore exploration for gas in KG Basin, spectacular new discovery of gas was made by Reliance Industries Limited (RIL) in October, 2002. RIL struck 9 Trillion cubic Feed (tcft) of gas reserves, the biggest gas find in India in three decades, in the exploration block called KGBDW-6 (renamed asKG-DWN-98/3) in deep waters, 150 Kms off the Andhra Pradesh Coast near Kakinada. Cairn Energy also announced discovery of about  1 tcft of gas in Krishna Godavari Basin. The present estimates indicate that RIL can supply 40 MMSCMD of gas per day after all the facilities are built and gas transported to landfall point near Kakinada. ONGC, Gujarat State Petroleum Corpn. Ltd and Reliance Industries Limited are further intensifying exploration for gas, both onshore and offshore in Krishna Godavari Basin and we may expect considerable additions to gas availability.

Boost For Industrial And Economic Growth
Discovery of large quantity of natural gas in KG Basin is expected to lead to long term contracts with reasonable prices. Such as situation provides exciting opportunities for industries in Andhra Pradesh to become internationally competitive and spur rapid economic growth. The Government of Andhra Pradesh is keen to ensure that maximum quantity of gas found in KGB is utilized in AP to overcome the energy shortage, give impetus to new industries,  create employment opportunities and contribute to economic value addition and exports

For further information, you may contact: 
 Director of Mines and Geology,
Government of Andhra Pradesh.
Phone: 91 - 40 – 23220649
Fax: 91 - 40 – 23225519
E-mail: dmgap@rediffmail.com

Textiles & Leather

Apparel Export Park , Gundla Pochampally 

Government of AP, has set up an Apparel Export Park at Gundlapochampally, about 18 Kilometers from Hyderabad.  The 175-acre park has 117 plots of one acre each for allocation to manufacturers and exporters of apparels, both made-ups and hosiery. 

It has a facility for uninterrupted good quality power supply from a dedicated sub-station located at the park site, besides other facilities like roads, treated drinking water, drainage and effluent discharge by pipes, sewerage systems and a security wall. 

A number of business facilities like warehouses, fire station, truck terminals, training institute, commercial bank, post office, courier service, telcom office, etc., have been planned around the park to facilitate speedier business transactions. 

Following are location advantages for the units at the Apparel Export Park: 

  • The twin cities of Hyderabad and Secunderabad are fast developing into a major garment export center.

  • Hyderabad has easy access to all major cities and cotton growing and inputs manufacturing centers through well-built road, rail and airline net-work.

  • The Hyderabad airport is at  a distance of around 15 kilometers from the park.

  • Skilled labour with  good work ethics is available at relatively lower cost.

  • The units in the park have been declared as Public Utilities to prevent illegal labour strikes.

  • The Apparel Training and Design Center set up by the Apparel Export Promotion Council located at Hyderabad is training manpower required for the industry.

  • Institutional support is provided by the Government and the APIIC, the implementing agency, to all the units located in the park.

Six Garment Units, viz., Chermas, Fantoosh, Karthik, Racherla, Symatic and Hindustan have already set up their factories in the park and doing roaring business. Another five Garment Units have commenced civil works.

Apparel Export Park , Vishakhapatnam 

Government of India have sanctioned Apparel Export Park, Vishakhapatnam, with an estimated cost of Rs.27.53 Crores.  Infrastructure Development is taking place in a sprawling 145 acres land in a prime location.

This park is having the following locational advantages:
The ‘City of Steel’ Vishakhapatnam is the home for major industries in Pubic Sector as well as Private Sector.

  • It has distinct locational advantage of being equidistant from major industrial centers of Delhi, Pune, Baroda, Chennai and Calcutta and with easy access to South East Asia, South Asia, Japan and Korea.

  • The city is well connected by road, rail, seaways and airways.

  • Abundance of raw material resources together with easy availability of managerial, technical, skilled and unskilled manpower at low wages and peaceful industrial relations makes the city an ideal choice for an entrepreneur.

  • The city has excellent educational institutions, modern hospitals, housing facilities, recreational centers, comparable to the best in the country.

Textile Parks
One Textile Park at Sircilla, Karimnagar District, which is sanctioned by Government of India is buzzing with activity  and ready for starting textile manufacturing.

Government of A.P. have drawn an ambitious plan to achieve $ 2 billion exports by establishing 5 Apparel Export Parks (Gundlapochampally near Hyderabad, Maheswaram near Hyderabad, Vishakhapatnam, Kuppam and Warangal) and 12 Textile Parks (Sircilla, (Karimnagar), Chirala (Prakasham), Pochampally (Nalgonda), Pashamylaram (Medak), Pamidi and Rayadurg (Ananthapur), Adilabad, Rajam (Srikakulam), Kothur (Mahaboobnagar), Mangalagiri (Guntur), Nagari (Chittoor) and Yemminganur (Kurnool).

For further information, please contact:
Director of Handlooms and Textiles and Development Commissioner,
Apparel Export Parks,
IV Floor, ‘C’ Block,
BRK  Rao Government Offices Building,
Tank Bund Road, Hyderabad – 500 069
Phone  +91 - 40 -23224542  / 23225805
Fax: +91 - 40 -23224542
 E-mail: handlooms_textiles@apts.gov.in