Rs 3,500 crore mega furniture manufacturing cluster planned near Gudur in Andhra Pradesh’s Nellore district

Tirupati: Plans for a large-scale furniture manufacturing ecosystem near Gudur are gathering pace, with Nellore district authorities identifying 1,000 acres for the Andhra Pradesh Furniture Mega Cluster (APFMC).

The ambitious project, estimated to attract investments of ₹3,500 crore and generate 50,000 to 70,000 jobs, aims to position Andhra Pradesh as a leading player in the global furniture manufacturing and export markets, according to officials.

District authorities, led by collector Himanshu Shukla, have identified the land near Gudur for the proposed project, following a site inspection by officials from the Trade Promotion Council of India (TPCI), who expressed willingness to proceed with the location. This follows a memorandum of understanding signed between the AP govt and TPCI at the CII Partnership Summit 2025. TPCI has also partnered with the World Furniture Confederation to strengthen global market integration.

Planned as a port-oriented, integrated industrial ecosystem, the mega cluster will cover the entire production chain — from raw timber imports to finished furniture exports.

The master plan includes dedicated zones for timber processing, manufacturing units, logistics facilities, a common facility centre, commercial showrooms, and residential infrastructure.

Inspired by global manufacturing hubs such as Foshan (China), Binh Duong (Vietnam), Izmir (Turkey), and Klang (Malaysia), the cluster is expected to accommodate 400 to 550 units once fully operational. The project will follow a public-private partnership (PPP) model. Of the total ₹3,500 crore investment, TPCI is expected to contribute ₹940 crore to ₹1,160 crore towards infrastructure and cluster management, while private players will invest ₹2,230 crore to ₹2,450 crore in manufacturing, logistics, and real estate.

Officials estimate the cluster will produce nearly 2 million furniture units, 4 million flat-pack kits, and about 1.5 million modular kitchen and wardrobe sets annually. With strong port connectivity, the APFMC is expected to emerge as a major export hub, targeting annual exports of ₹8,000 crore to ₹10,000 crore within five to seven years.

Collector Himanshu Shukla said TPCI has sought further clarity from the state on policy incentives, external infrastructure support, and the structure of the special purpose vehicle (SPV) for project execution. He expressed confidence that the mega cluster will boost the regional economy, attract significant investment, and create a globally competitive manufacturing ecosystem in Nellore.