The cluster would encompass manufacturing units, which will primarily produce electronic components and parts.
Sri City and ELCINA signed a memorandum of understanding (MoU) on Thursday to set up an electronics hardware manufacturing cluster (ESDM cluster) in Sri City, south India’s largest integrated business city consisting of a special economic zone, domestic tariff zone and a free trade warehousing zone. Sri City is located in the Nellore district of Andhra Pradesh.
The MoU will felicitate members of the association along with other electronics manufacturers to set up facilities that can help address the domestic and export market. The cluster would encompass manufacturing units, which will primarily produce electronic components and parts.
Along with offering modern support facilities and infrastructure, the cluster will also have a common facility testing centre as well as facilities for training workers. Sri City will provide 50 acres of land for the cluster in Phase I and subject to demand, an additional 50 acres in Phase II, according to a Business Standard report.
T Vasu, Elcina president said, “We are convinced that this cluster in Sri City will enable manufacturers to establish globally competitive facilities, expand manufacturing and address the challenge thrown at us by surging imports.”
According to Ravindra Sannareddy, managing director, Sri City, the current electronic hardware market in India is worth $75-80 billion, of which 60 per cent is imported. Hence, there is a huge opportunity for India to become an electronic hardware manufacturing hub. Sensing this opportunity, Sri City had tied up with Elcina to jointly work towards developing the ESDM cluster.
Further elaborating on the reason for choosing Sri City, Rajoo Goel, Elcina secretary general said, “Sri City has a ready mix of infrastructure, educational institutions, hospitals and logistics, which made it a natural choice for us to sign the MoU. These facilities will enable manufacturers to start operations with a short lead time.”
