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Advantages of Andhra Pradesh
  • To the investors, Andhra Pradesh, offers both natural and competitive advantages.
  • Andhra Pradesh is a mineral-rich state, ranked second in India, containing a vast and variety of mineral wealth. There is still under-tapped and untapped mineral wealth throwing up many opportunities in this field for the new entrepreneurs. The state accounts for considerable reserves of important minerals in the country.
  • Endowed with fertile land, water and a range of agro-climatic conditions, Andhra Pradesh is an agriculturally prosperous state. To foster agriculture research and development, Andhra Pradesh has one Agriculture University and seven Agricultural Colleges, strong R&D infrastructure and institutions such as CCMB, ICRISAT, NARM, MANAGE and NIRD .
  • Andhra Pradesh provides a cosmopolitan environment with good quality of life at comparable costs.
  • Andhra Pradesh has skilled and dedicated workforce and a large number of universities, technical colleges, ITIs, polytechnics etc. With all the inherent strengths of a dynamic industrial economy, Andhra Pradesh is the right choice for your business endeavours.
  • Andhra Pradesh is home to many manufacturing and service industries such as Information Technology, Bulk Drugs & Pharmaceuticals, Agro Processing, Mineral based Industries, Engineering Industries, Textiles, Leather Goods, Gems and Jewellery.
  • Andhra Pradesh's pharmaceuticals sector is internationally known for its skills in chemical synthesis and process engineering on the one hand, and its commitment to the invention of new molecules on the other.
Major Industries in Andhra Pradesh
Automobile and Auto Components Industry
There are more than 20 auto component manufacturing companies in the state, manufacturing components such as grey-iron castings, precision aluminium castings, leaf springs, oils and lubricants, diesel fuel injection equipment, electronics and auto electronics and auto electrical, front axles, gears, forging, machined components, pressed metal components, pistons, cylinder liners, nozzles, delivery valves, starter motors, alternators, electronic regulators, high pressure die castings, clutch covers, fuel filters ,etc. The ideal places to locate companies in the Auto Sector are the Hyderabad-Zaheerabad, Visakhapatnam-Kakinada, Krishnapatnam-Tada-Sathiveedu and Vijayawada-Guntur corridors.

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

Bulk Drugs and Pharmaceuticals
Andhra Pradesh is well-known internationally for its skills in chemical synthesis and process engineering and its speed to market. The state is also poised for major strides in basic research. The State intends capitalizing on these strengths, acting quickly in the window of opportunity provided by regulatory change, to build a strong, globally competitive pharmaceutical industry. The growth of pharmaceutical industry in the country due to availability of trained and skilled manpower, research and development facilities ( Indian Institute of Chemical Technology (IICT) and Center for Cellular and Molecular Biology (CCMB), National Institute of Nutrition (NIN) ).

During 2000-01, India produced Rs.78.20 billions (US $ 1.66 billion ) of bulk drugs and Rs.183.54 billion ( US $ 3.9 billion ) of formulations of which share of Andhra Pradesh stands at Rs.21.700 billion ( US $ 462 million ) and Rs.54.05 billion ( US $ 1.15 billion ) respectively. With an annual growth rate of more than 20% and other proactive measures Andhra Pradesh is fast emerging as the pharmaceuticals capital of India.

Andhra Pradesh is one of the top most states in the country in the production of horticulture crops. It is due to its varied climatic conditions, such as tropical, sub-tropical and warm temperate zones. In 1999-2000, the area of cultivation of horticulture crop was 126 million hectares with a production of 5.18 million tonnes. The state ranks first in production of mangoes (2.38 million tonnes) production and in production of citrus fruits (1.17 million tonnes.). The value of processed fruits exports is Rs.240 million (US $ 4.8 million). The major destinations are: Malaysia, Singapore, Middle East, Netherlands, UK and Germany.

The state has good potential for horticulture processing units in view of good domestic and international demands for processed food. There are about 70 units in the organised sectors processing various fruits. There are 2 leading Mango Jelly processing units ( M/s Concept Foods, Hyderabad and M/s. Nutrine Confectioneries, Chittoor) beside 200 tiny units in East Godavari and Vizianagaram Districts, which are processing 6,000 tons of mangoes annually. 4 large, 15 small units and several women groups are producing pickles and chutneys.

Poultry Farming
Poultry farming in the state is most dynamic and fastest growing sector. The present egg production in the state is 12,000 million eggs per annum and 100 million broilers are produced in 2,700 layer & 4,000 broiler farms. An average of 35 million eggs are produced per day in the state. The growth rate in the layer and broiler production is 5% and 10% respectively per annum. The estimates indicate that the layers may increase to 63 millions and broiler to 130 millions and egg production may increase to 15,300 millions by 2005. About 200 million eggs are exported during the last year from the country and out of them 60 million eggs are from the state. 12 million broiler hatching eggs were exported to Gulf from Andhra Pradesh out of total export of 21 million eggs from India. About 108 containers ( with individual capacity of 410 thousand eggs ) were exported to Dubai, Muscat and Kuwait during 1998-99 with a value worth Rs.80 million (US $ 1.6 million).

The states is having good potential for setting up of processing units, packing and grading units for eggs and cold chain developments for preservation.

The state is the leading producer of some of the spices such as chillies, turmeric, tamarind, ginger, coriander, etc. The state ranks first in the country in chillies and turmeric production and ranks second in coriander production. In 1999-2000, the production of chillies in the state was 440 thousand tonnesand turmeric production was 228 thousand tonnes. 70% chillies are sold as dried red chillies and 30% is processed into chilly powder. There are 58 leading units in processing and production of chilly powder. A majority of these units are located in Guntur, Warangal and Hyderabad. There are 40 turmeric processing units located mostly in Nizamabad and Medak Districts. Tamarind production is 33 thousand tonnes.

Exports of chillies in 1997-98 was Rs.161 million (US $ 3.2 million). The exports of turmeric during 1997-98 was Rs.3.5 million (US $ 70,000) The exports of tamarind was Rs.131 million (US $ 2.62 million) during 1997-98.

Mines and Minerals
Andhra Pradesh is the second largest store house of Mineral Resources in India. The State has identified the Mining Sector as one of thegrowth engines for the overall development of industry and infrastructure. A total of 48 minerals are found in the State including vast unexplored resources of Coal, Limestone, 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 fourth in value of Mineral Production, contributing 7 per cent (Rs.36 billion) (US $ 0.72 ) of the countryís value of production of Rs.530 billion (US $ 10.6 billion). The State also contributes Rs.2000 million ( US $ 40 million) by way of foreign exchange. It produces about 70 million tonnes of Industrial minerals and seven million cubic meters of dimensional stones and building material contributing nearly Rs.65 million (US $ 1.3 million) to the State Exchequer.

Textiles and Apparels
Andhra Pradesh has been producing good quality cotton with a comparatively higher output per hectare in India. The average production of medium and superior long staple cotton has crossed 2.6 million bales. With cotton in abundance, Textile Industry in the State is flourishing.

There are around 70 Cotton Spinning Mills in the State with a total spindlage of 18.30 millions and 9 open end spinning mills with 5716 rotars. There is scope for a lot spinning mills with State-of-the-art technology machines having minimum 25000 spindles.

Currently, there are 1050 weaving units with a production capacity of about 750 million metres of fabrics. The State has emerged as a large Textile processing centre with over 100 units, with a total processing capacity of 13 million metres of cloth per annum.

IT Industry
Andhra Pradesh has a tremendous growth in IT industry. Software exports from the State have risen from just Rs.40.0 million (US$ 1 million) in 1992-93 to Rs.20000.0 million (US$400 million) in 2000-2001. Andhra Pradesh has been able to achieve above 100 per cent CAGR (Compounded Annual Growth Rate) in the software sector during the period 1992-2000.

There is abundant availability of highly skilled IT manpower, pleasant climate, good technical and social infrastructure, and a pro-active Government. Companies like Microsoft, IBM, Motorola, Oracle, Baan and Wipro have set up their operations in Hyderabad. Local entrepreneurs have also set up several start-up companies. Not only have they achieved high growth rates but a few have even become global.

Andhra Pradesh based IT companies like Satyam computers and Infotech Enterprises have set up operations in the United States. Satyam Computerís subsidiary, Satyam Infoway, has become the second Indian company to be listed on the NASDAQ.The number of software companies in Andhra Pradesh has risen from just 26 units in 1992-93 to 1200 in 2001.

Industries in Andhra Pradesh
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