US-based SMEC to invest Rs 2,500 crore in Andhra Pradesh
Small & Medium Enterprise Consortium (SMEC), formed by a group of entrepreneurs from across the globe, will invest Rs 2,500 crore in Andhra Pradesh for providing thrust to SMEs, particularly IT, in the state.
By PTI |
HYDERABAD: Small & Medium Enterprise Consortium (SMEC), formed by a group of entrepreneurs from across the globe, will invest Rs 2,500 crore in Andhra Pradesh for providing thrust to SMEs, particularly IT, in the state.
The investment by SMEC, which promotes sustainable development of small and medium enterprises, would generate 25,000 jobs directly and over 80,000 indirectly in the state.
"There are several entrepreneurs of Andhra Pradesh operating start ups to consulting units to global outfits in USA, currently, and most of them have offices in Hyderabad," New Jersey-based entrepreneur and SMEC Chairman Mahendar Reddy Musuku said.
"Each office has five to 200 employees and thriving with an aggressive growth plan. We have hence decided to set up a consortium so that these small and medium entrepreneurs will come together, develop and avail common facilities for a better and faster growth," he added.
As for the reason for selecting Andhra Pradesh, Musuku said Hyderabad and information technology have become synonymous.
"The infotech revolution has brought Hyderabad on the centre-stage and the brightest pool of talent is coming from here," he said.
On Tuesday, an SMEC delegation met the state Chief Minister Y S Rajasekhara Reddy, who appreciated their efforts and assured support and from the government, Musuku said, adding that, "we are confident our initiative will result in creating a major support tool for the IT industry in AP."
India's IT industry is said to be the world's 10th largest and is increasing rapidly.
According to consultancy group McKinsey estimates, by 2008 India's software, services and IT outsourcing industry would be worth $70 billion annually, employing four million people and contributing 7 per cent to the Gross National Product.
Upendra Chivukula, Assemblyman and Deputy Speaker from New Jersey, said Indian Americans are playing an active role in the US.
"For IT industry, operations across the globe is common and for these enthusiastic first generation entrepreneurs, starting a back office in India, particularly in Andhra Pradesh, is a natural choice," he said.
"The Indian office gives them the economic advantage as well psychological satisfaction. More over, the role of SMEs in any industry is very vital because they create employment and business opportunities at different places and different levels," Chivukula observed.
The SMEC consortium has its member-companies ranging from an average of USD 5 million (Rs 20 crore) to $100 million (Rs 400 crore).
The investment by SMEC, which promotes sustainable development of small and medium enterprises, would generate 25,000 jobs directly and over 80,000 indirectly in the state.
"There are several entrepreneurs of Andhra Pradesh operating start ups to consulting units to global outfits in USA, currently, and most of them have offices in Hyderabad," New Jersey-based entrepreneur and SMEC Chairman Mahendar Reddy Musuku said.
"Each office has five to 200 employees and thriving with an aggressive growth plan. We have hence decided to set up a consortium so that these small and medium entrepreneurs will come together, develop and avail common facilities for a better and faster growth," he added.
As for the reason for selecting Andhra Pradesh, Musuku said Hyderabad and information technology have become synonymous.
"The infotech revolution has brought Hyderabad on the centre-stage and the brightest pool of talent is coming from here," he said.
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On Tuesday, an SMEC delegation met the state Chief Minister Y S Rajasekhara Reddy, who appreciated their efforts and assured support and from the government, Musuku said, adding that, "we are confident our initiative will result in creating a major support tool for the IT industry in AP."
India's IT industry is said to be the world's 10th largest and is increasing rapidly.
According to consultancy group McKinsey estimates, by 2008 India's software, services and IT outsourcing industry would be worth $70 billion annually, employing four million people and contributing 7 per cent to the Gross National Product.
Upendra Chivukula, Assemblyman and Deputy Speaker from New Jersey, said Indian Americans are playing an active role in the US.
ADVERTISEMENT
"For IT industry, operations across the globe is common and for these enthusiastic first generation entrepreneurs, starting a back office in India, particularly in Andhra Pradesh, is a natural choice," he said.
"The Indian office gives them the economic advantage as well psychological satisfaction. More over, the role of SMEs in any industry is very vital because they create employment and business opportunities at different places and different levels," Chivukula observed.
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The SMEC consortium has its member-companies ranging from an average of USD 5 million (Rs 20 crore) to $100 million (Rs 400 crore).
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