Companies that manufacture home decorative, interior products and building materials in China plan to open a manufacturing cluster in Andhra Pradesh as to fully access the Indian market.
The Andhra Pradesh government will facilitate an industrial park and a logistics park of 10,000 acres just for the units set up by the Chinese companies, according to Business Standard.
In the next 4 to 5 years, there will be approximately $6 billion invested in the industrial park and the logistics park, as the companies proposed. There has been signed an MOU by the AP government officials and China Association of Small and Medium Enterprises and China Small and Medium Investment Group Limited, Beijing, for the establishment of the international industrial park and a logistics park.
The Chinese companies have been blocked from fully accessing the Indian market because of the anti-dumping and logistics costs, even if the Indian market is full of cheaper Chinese products ranging from ceramic tiles to sanitary ware products, as reported by the Business Standard.
Thus, the building materials industrial park will occupy a 20 square kilometers and it will produce building products such as low-carbon products or energy saving products. Another 20 square kilometers area will be used for creating a logistics park for the distribution and logistics of these products.
According to Business Standard, the park will manufacture structured materials made of wood, bamboo, stone, cement, concrete, bricks, tiles, ceramics, glass, engineering plastics and composite materials among other things. Also, decoration materials like coatings, paint, cladding materials, veneering, ceramic tiles in all colors and glass with special effects will be made here.
The products will be supplied to local markets and to exports markets too. Officials expect the city of Amaravati and the near cities to start demand on the products. At the moment, Gurajat has a big cluster of ceramic and home interior products makers who deliver the products to the Indian markets.
In the first phase, the government expects a $2.5 billion investment in the manufacturing and logistics parks involving the building material products. The remaining money will be invested in the second and third phase.
