NELLORE: The State government has identified about 1,000 acres of land near Gudur for the proposed Andhra Pradesh Furniture Mega Cluster (APFMC). The project has received a push after the government inked a Memorandum of Understanding (MoU) with the Trade Promotion Council of India (TPCI) at the CII Partnership Summit 2025.
After inspection of the site on April 13 this year, TPCI officials had expressed satisfaction with the proposed location, and formally conveyed their willingness to go ahead on April 28, giving the initiative a fresh momentum.
The ambitious project is expected to attract nearly Rs 3,500 crore investments, besides generating employment opportunities for nearly 50,000 to 70,000 people.
Planned as a large-scale, port-oriented industrial ecosystem, the cluster will integrate every stage of furniture production - from timber imports and processing to manufacturing and export of finished products.
The masterplan includes dedicated zones for timber processing industries, furniture manufacturing units, logistics and export facilities, a Common Facility Centre, commercial showrooms, residential infrastructure, and sustainability-focused amenities.
Once operational, cluster expected to accommodate about 400 to 550 units
The project is said to be inspired by internationally recognised furniture manufacturing hubs such as Foshan in China, Binh Duong in Vietnam, Izmir in Turkey, and Klang in Malaysia. Once operational, the cluster is expected to accommodate around 400 to 550 manufacturing units.
According to an estimate, the facility could produce nearly 2 million furniture units annually, along with 4 million flat-pack kits and around 1.5 million modular kitchen and wardrobe sets.Under the proposed structure, TPCI is expected to invest between Rs 940 crore and Rs 1,160 crore towards core infrastructure, utilities, and cluster management systems.
Private investors are likely to contribute an additional Rs 2,230 crore to Rs 2,450 crore across manufacturing, logistics, and real estate sectors.With direct port connectivity and export-oriented infrastructure, the APFMC is projected to emerge as one of India’s fastest-growing furniture export centres with annual exports between Rs 8,000 crore and Rs 10,000 crore within the next five to seven years.
“TPCI has sought further clarification from the State government regarding the formation of a Special Purpose Vehicle (SPV) under a Public-Private Partnership model, along with details related to external infrastructure support and policy incentives,” District Collector Himanshu Shukla said.
The Collector exuded confidence that the mega cluster will reshape Nellore district’s industrial profile by attracting investments, building a globally competitive manufacturing ecosystem.
