In 2008, Satyavedu and Varadaiahpalem were backward places in Tirupati district of Andhra Pradesh. Since the inception of Sri City, the entire region has transformed to a hub of manufacturing, services and knowledge. Today, every organisation wants to have their presence here.
In a recent roadshow at Chennai held by the Andhra government for their global investor’s meet, Ravindra Sannareddy (RSR) and Sri City were the star kid. Sri City is headquartered in Chennai but the business city is in Andhra, thus having access to more ports and other infrastructural facilities. His success of utilising the best of both worlds is the key USP of Andhra to attract investors.
Sri City, is the brain child of Ravindra Sannareddy. RSR headed Megasoft, a flourishing IT software company headquartered in the US and operated in over 15 countries. Post 9/11, RSR shifted to India with his family. Joining hands with the industrialist Srini Raju, he conceived a special economic zone that would also have rich facilities as a domestic tariff area. Having witnessed the growth due to industrial corridors in US and China, RSR wanted to replicate the same in India, and today he has succeeded in doing it. With total investments close to USD 4 billion and exports exceeding USD 500 million, Sri City recorded growth even during the pandemic.
Spread over 7500 acres, Sri City includes a multiproduct special economic zone, domestic tariff zone, free trade and warehousing zone and an electronic manufacturing cluster. It is home to over 200 companies from 28 countries.
Ravindra Sannareddy (RSR) highlights the growth journey
IE: What are the main features of Sri City?
RSR: The companies in Sri City are crucial to ‘Make in India’ and ’Atma Nirbharata‘ initiatives. Since inception, it has been envisioned and conceptualised as a world-class integrated business city. It was designed by world renowned urban planners, Jurong Consultants and planned as a futuristic smart city. With top-class infrastructure, connectivity, ample industrial land bank, plug and play modules and investor friendly ambiance, this has become a preferred destination. Companies present here have invested over Rs 35,000 crore and directly employ over 55,000. Apart from this, large numbers are indirectly associated with the business city.
Sri City, has brought about a significant socio-economic prosperity to the region. Close to 50 per cent of the workforce are women. Some of the industries, such as Pals Plush, Bharath FIH, Mondelez, Kellogg’s, Everton Tea, MSR Garments, KGI Clothing, Unicham, Colgate Palmolive, Alstom, etc., employ a large women workforce.
IE: Earlier when we reported in 2015, Department of Electronics and IT, GOI had given an in-principal approval for an electronic manufacturing cluster. Please brief on this industry’s concentration in Sri City?
RSR: The Electronic Manufacturing Cluster (EMC) at Sri City, is an approved green field cluster, which is an exclusive zone for companies involved in electronic R&D, design, manufacturing and assembly operations. Around 100 acre of land was allotted for this, with plug and play facilities to start operations quickly. As of now, 8 units have started to set up and of them, 4 are operational.
IE: Sri City has also become a preferred destination for the air conditioner industry. How was this industry attracted?
RSR: Lucrative PLI schemes from the government coupled with enabling environment, like infrastructure, connectivity and ease of doing business have been the major reasons for different cluster of industries to prefer Sri City. As of now, five major brands – Daikin, Blue Star, Amber, Havells Lloyd, and Epack have evinced interest for setting up manufacturing units. The total production share of these companies put together in 2023 is estimated to be around 36 per cent of the total production in the country. By 2027, this is expected to increase up to 45 per cent.
IE: What other industry clusters are present at Sri City?
RSR: Over the years, Sri City has emerged as a hub for FMCG, light engineering, electronics food and beverage and the automotive industries. Sri City being a multi sector manufacturing hub, is open for all industries in ‘green and orange’ categories, in various sectors.
IE: Are there any country specific tie-ups as of now?
RSR: While Sri City is the second largest Japanese industrial township in India with 27 Japanese companies, 28 nations in all are represented in Sri City. The USA, Britain, Taiwan, Belgium, among others, have industries from their nation here.
IE: Brief about the social infrastructure at Sri City
RSR: A robust social infrastructure is in place in Sri City. Besides numerous housing options that cater to all economic strata, Sri City also has banks, hospitals, education institutions, police station, fire station, shopping arcades, restaurants, golf driving range and a specially curated butterfly park. To cater to the outdoor spirit of residents and visitors, Sri City offers great cycling tracks, kayaking facilities and a number of playgrounds. A state-of-the-art helipad is operational to transport VIPs. Sri City also has a postal office along with its own postal code.
IE: Is there a possibility of expanding Sri City in the current location and also to other states?
RSR: Right now, building Sri City to its full potential is our top priority. We endeavour cent percent utilisation here, and then to scale up facilities and amenities , as needed. Technocrats, administrators and planners both inside and outside of our state are referring to, and studying Sri City’s successful project model, especially its unique consent-based land acquisition concept. Sri City is considered as the benchmark for various industrial estates that are being built in Andhra. We are therefore completely focused on Sri City and its future growth. We still have a long way to go!
