Sri City strengthens its position as India’s leading integrated industrial hub in 2025

Sri City Integrated Business City concluded 2025 with steady progress across investments, employment, industrial expansion, sustainability, and community development, underscoring strong investor confidence and continued collaboration with government stakeholders.

Early in the year, during his January visit to Visakhapatnam, Prime Minister Narendra Modi acknowledged Sri City’s pivotal role in strengthening Andhra Pradesh as a leading manufacturing hub.

This recognition was reinforced in November when Andhra Pradesh Chief Minister N. Chandrababu Naidu described Sri City as the “best industrial hub in the country,” praising its emergence as a model integrated industrial township. Further highlighting state support, Nara Lokesh, Minister for IT & Communications, attended the groundbreaking ceremony of LG Electronics’ manufacturing facility in April.

Reflecting on the year’s achievements, Dr. Ravindra Sannareddy, Managing Director of Sri City, said, “2025 has been a defining year in Sri City’s journey. Continued confidence from global and domestic investors, combined with proactive support from the central and state governments, has enabled us to build an integrated, sustainable, and inclusive industrial ecosystem.”

Investment momentum and job creation

In 2025, Sri City mobilised investment commitments of Rs 20,250 crore through 43 Memoranda of Understanding. Of this, Rs 11,750 crore was secured via 20 MoUs at the CII Partnership Summit 2025 in November, presided over by Chief Minister of Andhra Pradesh.

The remaining Rs8,500 crore was committed through 23 MoUs during the rest of the year. These cumulative investments are expected to generate approximately one lakh direct and indirect employment opportunities.

New operations and expansions

Industrial activity gathered pace with 15 new companies commencing operations during the year—five inaugurated during the Partnership Summit and ten at other points in 2025. In addition, 15 existing units expanded their capacities, reflecting sustained confidence among resident industries.

A major milestone was achieved in May with LG Electronics India Ltd ((LGEIL) commencing construction of its manufacturing facility, reinforcing Sri City’s emergence as a consumer appliances hub. Japanese major Proterial (Metglas) committed a significant investment in advanced materials, including specialty steel, magnetic materials, and automotive components. Capacity expansions and supply-chain investments by Daikin further strengthened the township’s advanced manufacturing ecosystem.

Sectoral diversification continued as Epack Group, SCIC Ventures, and Mondelez India expanded operations, while global firms such as Ball Corporation, Kryon Technology, Amber Enterprises, and Solum India High-tech broadened their presence.

The logistics and packaging sectors also recorded notable advances. NX Logistics India commissioned its Phase-2 advanced logistics facility, while Oji India Packaging inaugurated its fifth and largest manufacturing plant in South Asia.

Manufacturing excellence was highlighted on March 22 when Kobelco Construction Equipment rolled out its 20,000th excavator.

In automotive components, Nittan India doubled its valve production capacity, strengthening Sri City’s position in precision engineering.

In specialised manufacturing, VRV Asia Pacific achieved a global export milestone by supplying a large-scale liquid nitrogen storage tank to Air Liquide, Qatar.

Diplomatic visits and global outreach

Sri City hosted several high-level diplomatic and international delegations during the year, reflecting its growing global stature.

The Japanese Ambassador Ono Keiichi, visited and appreciated the township’s infrastructure and investor-friendly ecosystem. Consul Generals from the Republic of Korea, Thailand, and the Russian Federation also undertook official visits.

Delegations from Australia, Taiwan, Korea, Japan, and the United Kingdom, along with domestic industry bodies such as Chennai Angels and the Hindustan Chamber of Commerce, visited Sri City. On April 17, Naofumi Takenaka, President and COO of Daikin Industries, lauded Sri City’s world-class industrial ecosystem during his visit.

Senior government engagement included visits by the Minister for MSME, Kondapalli Srinivas, and senior officials from APIIC and APSPDCL. A delegation of SEZ pioneers led by G K Pillai, IAS (Retd.), former Union Commerce Secretary, commended Sri City’s consent-based land development model.

Notable academic and thought leadership engagements included Dr G Satheesh Reddy, former DRDO Chairman, attending the 9th Batch Convocation of IIIT–Sri City as Chief Guest, and Dr T Hanuman Chowdary, Padma Shri awardee, addressed industry leaders on India’s long-term economic vision. Over 525 Jagriti Yatra delegates also visited Sri City in November.

Sustainability and environmental initiatives

Sri City strengthened its sustainability agenda through biodiversity-focused seminars during the Flamingo Festival and an exhibition highlighting green initiatives. The Sri City Foundation contributed Rs10 lakh to the forest department to enhance infrastructure at Nelapattu Bird Sanctuary.

The Miyawaki plantation programme surpassed one million saplings, while Kobelco planted 10,000 Palmyra trees to mark its 15th anniversary. Renewable energy adoption accelerated, with Mondelez commissioning a 6.2 MW solar plant and Bergen adding 350 kW of rooftop solar capacity. With 31 industries adopting solar power, total installed capacity reached 46 MW.

Recognition and safety initiatives

Sri City industries received multiple accolades in 2025. India Foods, Kellogg India, and Danieli India won CII Andhra Pradesh Industrial Safety Gold Awards. Knauf India achieved GreenCo certification, while the Sri City Foundation was recognised by the Indian Red Cross for organising one of the state’s largest blood donation camps. Sri City received the BW Best CFO Award, Isuzu Motors India was recognised for GST compliance, and Danieli India won CCQC awards for quality and innovation.

Workplace and community safety remained a priority through National Safety Week campaigns, fire safety mock drills, and road safety initiatives. Community-led measures, including reflective collars for cattle, helped reduce nighttime accidents.

Corporate social responsibility and community engagement

Nearly Rs 3.25 crore was invested in CSR initiatives through the Sri City Foundation and partner industries, supporting education, healthcare, environment, and community welfare projects. Cultural and social engagement was promoted through programmes organised by the Sri City Spiritual and Literary Forum, including literary events and Ugadi awards, alongside national celebrations that strengthened community bonding.

Going forward

As Sri City enters 2026, it carries forward strong momentum. CM Chandrababu Naidu has set an ambitious target of hosting 500 companies from 50 countries and creating 1.5 lakh direct jobs by 2029. Dr. Ravindra Sannareddy has pledged to work closely with government, industry, and community stakeholders to realise this vision. With its proven track record, global outlook, and strong sustainability focus, Sri City is well positioned to consolidate its status as India’s leading industrial destination.