Sri City, Surpassing the Auto Cluster in TN

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The new auto and mobile manufacturing hub at Sri City is slowly progressing towards establishing a solid ground. AP’s integrated business region had been seeing a steady momentum with the arrival of Foxconn plant. Sri City is located approximately 55 kilometres from Chennai, and is proving to be a strategic and cost effective location for the foreign players.

Tamil Nadu is now seeing a great competitor in Sri City, directly overtaking its auto cluster reach. CM Chandrababu Naidu has heavily banked on the potential of the business hub, going all in to pitch it to the world. The recent launch of Isuzu Motors in the region, inaugurating a massive facility worth Rs 3000 Cr has set the pace to another level. The prospects with Hero MotoCorp laying its own Rs 3000 Cr facility along with the setting up of Crane giant Kobleco has given an all new thrust to the city.

The world is now closely watching the progressive tide coming into the integrated City that speaks of world class quality.

Tamil Nadu was the first state that could have lapped up the facilities of Isuzu and Mahindra & Mahindra, but lost out to the new state of Andhra Pradesh. The same could be said for Karnataka, which cleared the way out to Hero with a 500 Cr expanse, but again lost to Andhra Pradesh. This proves the potential and scope for Sri City to break all the barriers and emerge as India’s top destination business hub.

The Naidu Factor

Brand CBN continues to be the key force during the decision making process for most of the investors. This was lately accepted and affirmed by Masanori Katayama, President, Isuzu Motors India. Katayama stated that he was impressed with the infrastructure, connectivity and management of Sri City, not to forget the extended initiatives that were offered by CBN to the players. Naidu had offered road tax exemption for the Isuzu vehicles in the state, promising better amenities and business to the investors.

AP’s Reputation with the World

AP now stands as number two in India in terms of ease of doing business, ahead of both Tamil Nadu and Karnataka. There are other great aspects to doing business in Sri City, including favourable land cost, exhaustive power supply to the suppliers and the OEMs, great connectivity via port as well as airport, and convenient labor environment.

AP Instead of TN – Reasons

There are several reasons why Andhra rules the roost now with bringing in investments into Sri City.

  • Tamil Nadu still is way behind in lines with power availability and OEM suppliers.
  • AP directly offers a subsidy of 75 Paise per unit of electricity consumed.
  • CBN brand factor continues to cast a positive impact on the lucrative investors who are now looking at the new state of AP under the microscope.



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