Amara Raja Group setting up digital city in AP

Diversified business house Amara Raja Group is setting up a 500-acre project for electronics goods manufacturing at Chittoor in Andhra Pradesh, entailing a total investment of Rs 1,700 crore in the next 10 years.

Out of the total investment, the group will put in Rs 500 crore for development of infrastructure, while the rest will come from those firms, which will set up shops there.

According to sources close to the development, Amara Raja Infrastructure Pvt Ltd (ARIPL) is promoting the digital city near Chitoor along with Amara Raja Electronics Ltd (AREL) to bring in electronics hardware manufacturing to the state.
    
When contacted, an Amara Raja spokesperson said: "An investment of Rs 500 crore is envisaged over a five year period for infrastructure development in the park. Later AREL and other likeminded OEMs and vendors are estimated to invest an additional Rs 1,200 crore over a ten year period into electronics manufacturing and ITES facilities."

The project -- Amara Raja Digital World City (ARDWC), will offer a significant portion to AREL as it will be the "anchor" company of ARDWC.    

"The project will be developed under IT/ITES SEZ category and the group has received in-principle approval. The land has already been acquired and the notification of the project is under process," a source said.
    
The company spokesperson said that the economic activity in the park over the next 10 years is expected to be upwards of Rs 10,000 crore per annum.
    
"The project is likely to provide employment to more than 20,000 people. The location has been selected to provide non-migratory employment opportunities in line with Amara Raja's core purpose of creating access and opportunities to more people," the official added.
    
Established in 1985, the over Rs 2,000-crore Amara Raja Group has seven entities. The group is the producer of Amaron branded automotive batteries.
    
Besides, it is also present in packaged foods and beverages, electronics products manufacturing, power system production and fabrication of sheet metal products and fasteners.