Sri City offers readymade factories to Japanese firms

Last Updated: Fri, Oct 12, 2012 13:10 hrs

Chennai, Oct 12 (IANS) With Japanese companies increasingly setting up production bases in India, the Sri City Pvt Ltd developing an integrated business city in Tamil Nadu will be offering readymade factories to attract small and medium enterprises (SME), a top company official said Friday.

He added that the company is planning to develop a golf course at the integrated business city known as Sri City about 80 km from here to attract bigger industrial investments.

"We already have a Japanese enclave in Sri City where 14 companies from Japan have set up shop. We are increasing the size of Japanese enclave by 200 acres to 500 acres. We will be building modular ready-built factories of various sizes (5,000 square feet, 10,000 square feet and 20,000 square feet) specifically for Japanese SMEs," Ravindra Sannareddy, managing director told reporters here Friday.

"We are planning to have a golf course at Sri City. I am leaving for Thailand for discussions with golf course investors," he said.

He said around 40 companies have set up their production base in Sri City and Alsthom Transport will start rolling out metro coaches for the Chennai Metro project.

According to Shinya Fujii, director general of Japanese External Trade Organisation (JETRO), the Indian auto industry is 10 times bigger than that of Thailand.

However, Thailand has 1,700 tier two and tier three companies as against 1,250 companies in Chennai, India's Detroit. In Thailand, there are 635 tier one companies and 23 vehicle assemblers. Chennai has 350 tier one companies and 14 vehicle assemblers, Fujii said.

Stressing the fact that global original equipment manufacturers depend on SMEs located in low cost markets like Thailand, China, Vietnam, India and others Fujii said investments by Japanese SMEs in Tamil Nadu will strengthen the existing supplier's network and open more options for localiing of parts for global OEMs.

Fujii said JETRO had offered readymade factories to Sri City, ensuring quicker delivery time, lesser approvals and lower capital costs for SMEs.

Queried about the status of the Omega industrial township promoted by Ascendas of Singapore, Mizuho Corporate Bank and JGC Corporation to attract Japanese investments Fujii said: "Land measuring 1,500 acres have been acquired. The project is awaiting state government approvals."

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