Major Industries

• Automobile and Auto Components Industry

  The Automobile Industry has a strong presence in the State of Andhra Pradesh owing to a broad base of automotive component manufacturers and a large pool of highly trained and skilled manpower. Andhra Pradesh has to its credit, more than a 100 automotive component manufacturing companies (including first-tier suppliers and OEM's) that specialise 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.

  Most of these components are presently being supplied to Ashok Leyland, Honda, Tata, Suzki, Mahindra & Mahindra, Escorts, Kirloskar and Bajaj. Amaron Batteries are manufactured in Chittoor district. Approximatley 119 components manufacturers have been certified for ISO 9000 quality standards and 7 companies have achieved the QS 9000 quality standard set by General Motors,Chrysler and Ford.

• Agro-Food processing Industry

  The agriculture sector contributes nearly 19 percent of the State's GDP, providing employment to around 65 per cent of the state population. This sector is endowed with a bounty of natural resources in terms of soil and irrigation systems. The Agriculture sector is predicted to experience a quantum leap in terms of growth with an average annual growth of 6 per cent (real terms) over the next 20 years, looking at an elevated increase in the state agricultural GSDP from Rs 22,810 crore in 1995-96 to over Rs 90,000 crore in 2020-21. 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

• Bulk Drugs and Pharmaceuticals

  Andhra Pradesh has a dominant position in the bulk drugs and pharmaceutical sector with Hyderabad accounting for nearly one third of India's total bulk drug production. Andhra Pradesh has a market size of US$1.6 billion presently growing to US$10 billion by 2010. It is also well known internationally for its skills in chemical synthesis and process engineering. The state provides for favourable investment in bulk drugs and pharmaceuticals, with a good scope for the establishment of large and medium scale industrial units.

• Biotechnology

  Biotechnology is another important industry sector in Andhra Pradesh with the state being naturally blessed with abundant and diverse agriculture, forest wealth, marine resources and cattle population that serve as catalysts for the promotion of the biotech sector.

  In the field of Agri-biotech, tissue cultures for food crops and ornamental plants have been taken up in the state successfully. The State already has six agri-biotech companies doing well. The presence of a large number of hospitals and facilities for healthcare education and research also facilitate clinical trials of biotech products.

• Information Technology

  The Government of Andhra Pradesh has placed thrust on the Information Technology (IT) sector, as one of the major growth driver of the state in the future. The state aims at utilizing the Information Technology in achieving the policy objectives of economic development thereby enhancing the quality of life of its citizens and providing good governance to its citizens.

  The State has numerous advantages in terms of the abundant availability of highly skilled IT manpower, World-class technical and social infrastructure, and a pro-active Government. The state has also emerged as a back office to the world , emerging as a preferred Investment destination for the global ICT community from BPO to KPO, Technology to R&D, Design to FAB, EMS to Telecom, Animation to Gaming etc.

  A number of reputed corporates have made the state their home namely Microsoft, Oracle, IBM, Dell, GE, HSBC, Bank of America, Deloitte, Motorola, Nokia, Convergys, Google, Amazon , HCL, Satyam etc.

• Mines and Minerals

  Andhra Pradesh ranks among the second largest storehouse of mineral resources in India. The state stands first in the value of mineral production, contributing 9 to 10 percent (Rs.6583 Crores) of the country's mineral value of production and approximately Rs 800 crore by way of foreign exchange.

  The Mining sector has been identified as a growth engine for the overall development of the industry and infrastructure. The state offers numerous investment opportunities for investment and development of mineral and mining projects owing to its vast explored mineral potential and natural infrastructure. The state also envisages mineral projects with the participation and investment from the private sector.

• Textiles and Leather Industry

  The Textile and leather industry is poised for exponential growth in Andhra Pradesh with the state being second in the manufacture of raw silk and cotton, fourth in the production of wool and textile mills in the country. Andhra Pradesh is well suited in terms of ideal climatic conditions that are conducive to the growth of the leather and textile industry. The state also posseses an excellent raw material base with skilled human resources.

  The Government aims at creating the right climate and atmosphere for investors and entrepreneurs to benefit from the world trade through the Textile and Apparel Promotion policy, that poises to promote a strong and vibrant textile industry that would promote sustainable employment to weavers and workers in the handloom, powerloom and textile / apparel sector.

• Tourism

  Andhra Pradesh marks the land that has hosted a variety of cultures, traditions and religions for thousands of years. The state of Andhra Pradesh has the potential to be a favourable tourist destination in view of its array of natural resources, beaches, hills, wildlife and forests, forts, temples, Buddhist sites, bird sanctuaries and the traditional hospitality of the people.

  Andhra Pradesh is among one of the first states to have an exclusive policy for tourism. Andhra Pradesh accounts for 23 per cent of the domestic tourist arrivals in the country and 2.7 per cent of International tourists visiting Andhra Pradesh. The major tourist attractions at Andhra pradesh 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 - The identified clusters for tourism development are Hyderabad, Visakapattinam, Tirupati, Vijayawada, Nagarjunasagar and warangal.

Investment Opportunities

I) Agro-Food processing Industry

The projected investment in this sector is Rs 70,000 crores until 2010, with a total investment of Rs 1,60,000 crores upto 2020.

The opportunities in Agro based food processing include:

• Rice: Value based additions in rice based products such as rice flakes, puffed rice, Noodles, rice cakes, fermented products, Rice based beverages, barren oil etc.
  
• Maize: Ethanol made from maize is blended with petrol and provides scope for utilizing the marketable surplus in the state.
• Jowar: Alcohol can be effectively extracted from Jowar.
• Horticulture: Fruit & Vegetable processing, Fruit based beverages.
• Marine Food: The long coastline and reservoirs have attracted the processing of Marine and fresh water seafood, including fish and prawns.
• Poultry: Andhra Pradesh is the largest egg producer in India, producing 35 million eggs annually. A common facility for egg washing, grading and packing is being set up near Hyderabad.
• Animal Husbandry : Processing of poultry , eggs, meat , meat products.
• Food Processing : Oilseed meals (edible), breakfast foods, biscuits, confectionery, including cocoa processing and chocolate, oil expelling and refining, malt extraction, protein isolates, high protein foods, weaning foods, extruded / other ready to eat food products.

Current Project

Food processing Park, Kuppam

II) Biotechnology

The state of Andhra Pradesh, especially Hyderabad has produced several pioneers in the area of Medical/Human and Animal Healthcare. Some examples include Biotech companies such as Shanta Biotechnics, Bharat Biotech, Krebs Biotech, Biological E Ltd., Jupiter Biosciences and Dr. Reddy's Laboratories among others. This portrays the unique advantage of the State in the area of Pharma-related Biotech.

The Government of Andhra Pradesh has put forth the following areas in Biotech which offer opportunities for investment namely

• Therapeutics
  
• Diagnostics
  
• Industrial Biotechnology
  
• Inputs to the industry (hardware suppliers - Instrumentation and Chemicals)
  
• Agricultural Biotechnology

III) Mines and Minerals

Numerous opportunities exist in the field of Mines and Minerals by way of

• The Andhra Pradesh Minerals Development Corporation ( APMDC) , a fully owned Government undertaking for the exploration, exploitation and development of mineral resources has initiated investment proposals in bauxite, granite and beach sand. The government is also likely to open up diamond mines with the participation of National and International companies. There also exists a good scope for the revival of old gold mines and opening of a world-class gold mine in Kurnool district in the coming years.
  
• Mineral exploration projects with reference to diamonds, gold, base metals, limestone and granite.
  
• Envisaged mineral projects with participation and investment from the private sector.
  
• Ample scope to tap coal reserves for the development of coal based thermal plants,washeries, gasification and carbonisation plants. Proposed programmes to augment coal production with the aid of private participation.
  
• Andhra Pradesh is known for its wide variety of granites such as the world renowned Chimakurthy Black Galaxy Granite, Srikakulam Blue and White, Warangal and Khammam Black etc. A plethora of opportunities exist in making novelty and artifact products with polished granite that have a good demand in the International market.
  
• The Government of Andhra Pradesh has offered the development of advanced ceramics like Electro and and Mechano ceramics under private sector investment.

IV) Tourism

The State Government with a view to promote Andhra Pradesh as an ideal tourist destination has adopted a proactive investor friendly open door policy for investors, with a mechanism of active private sector participation. The following areas could be explored in the tourism sector.

• 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

V) Information Technology

In the arena of Information Technology investment opportunities exist in the following areas namely,

• Software Development.
• IT enabled services.

Mega Project

Hardware Park

VI) Ports

Andhra Pradesh has a 974 kilometer long coastline that offers numerous opportunities in the development of ports along the coast . The Visakhapatnam Port in is a prestigious port in the country for its largest cargo handling of more than 50 million tones per annum. The other ports are Kakinada. Krishnapatnam port and Gangavaram port are privatized and are under development. Nizampatnam port is open for privatisation.

Mega Project

Gangavaram Port Project

VII) Roads

The state of Andhra Pradesh has 1,78,747 Kms roads comprising 4,014 Kms length of National Highways and 9,212 Kms. The Golden quadrilateral Corridor Project of the country covers about 1014 Kms in the State with the project cost of Rs 25.46 billion.

Mega Project

Hyderabad to Vijaywada Highway

Integrated Infrastructure Development

Mass Rapid Transport System