IFF to Invest ₹3,153 Crore in New Manufacturing Facility at Nellore SEZ, Boosting Andhra Pradesh’s Industrial Growth

Andhra Pradesh has secured a major industrial investment with US-based Fortune 500 company International Flavors & Fragrances (IFF) announcing plans to establish a new manufacturing facility at the IFFCO Kisan Special Economic Zone (SEZ) in Nellore district. The project will involve a total investment of ₹3,153 crore and is expected to strengthen the state’s position as a growing destination for global manufacturing and biotechnology investments.

IFF is a globally recognized leader in flavors, fragrances, food ingredients, health, and biosciences, operating manufacturing facilities across more than 40 countries. The company already has a presence in Andhra Pradesh through its operations in Sri City and is now expanding its footprint with a second facility in the state.

The proposed project will be implemented in two phases. The first phase will involve an investment of ₹1,653 crore. Construction activities are expected to be completed by September 2028, followed by machinery installation by 2031. Commercial production is scheduled to begin by September 2031.

The second phase will attract an additional investment of ₹1,500 crore. Construction is expected to be completed by July 2032, with machinery installation concluding by March 2034. Commercial operations from the second phase are targeted to commence by September 2034.

The Andhra Pradesh government has approved incentives for the project under its Mega Project category as part of the state’s industrial development policy. Officials believe the investment will generate substantial direct and indirect employment opportunities for engineers, biotechnology professionals, laboratory technicians, and skilled workers.

Beyond employment generation, the project is expected to support the growth of ancillary industries such as packaging, logistics, maintenance services, and industrial support businesses. The availability of local raw materials is also likely to strengthen the biotechnology and food processing ecosystem in and around Nellore.

Industry experts believe the investment highlights Andhra Pradesh’s growing attractiveness for multinational companies seeking manufacturing opportunities in India. The project is expected to boost foreign direct investment inflows and further enhance the state’s reputation as an emerging industrial and export-oriented manufacturing hub.