Economy of KakinadaKakinada has seen a drastic change in its economy after independence. Industry in Kakinada was not very huge initially and revolved around Kakinada agriculture and fishing which were the main sources of economy. However, once fertilizer companies started their operations in 1980s, entire economic scenario of Kakinada changed drastically. Auto parts, steel industry and textile industry emerged as a result of these changes adding more strength to the existing agriculture and fishing industries. In present day scenario, Kakinada has a very diverse industry. Seaports of the city are one of the most significant factors in its economic development.
Industries in Kakinada
Kakinada is home to many different industries and all of them are flourishing at a fast pace day by day. Here are the details of all the industries of the city.
Fertilizer Industry in Kakinada
Being known as the “Fertilizer City of Andhra Pradesh”, Kakinada is a huge producer of the product. Nagarjuna Fertilizers and Godavari Fertilizers are two of the biggest brands to have their units in Kakinada. Nagarjuna Fertilizers is the largest urea manufacturer of Coastal Andhra Pradesh. Godavari Fertilizers is a major producer of diammonium hydrogen phosphate and is owned by Murugappa Group.
Information Technology Sector in Kakinada
Kakinada is becoming a favourite destination of various information technology players since the establishment of Software Technology Parks of India (STPI) in 2007. Being a Tier II city, Kakinada offers various benefits to the IT players along with its educated workforce. There are more than 35 IT companies situated in the city. Some of the major companies include Infotech Enterprises, Avineon Inc., Firstobject Technologies and Krify. Some small to midsized software companies such as ForeTell Technologies, Mythrii Solutions, Prominere Software Solutions, 3One Technologies, Traceout Technologies, Nyros Technologies, TrewPort Technologies, Aaspire Technologies, Meconzee InfoTech and Software Services also have their existence in the city. Andhra Electronics, an electronic-components manufacturing company have its presence in Andhra Pradesh since 1977.
Fabrication And Machine Shops in Kakinada
Decon Engineers is one of the most famous companies of fabrication industry. It is situated in the city since 1984 and was founded by Mr K.N.Rao, the legendary colossus of process industry. The company offers special engineering services for entire world.
Agro and Steel Industry in Kakinada
Coconut, being one of the largest produce of Andhra Pradesh, is exported by various companies of the city. Silk Road Sugars, a sugar refinery with a capacity of 600,000 tonnes is a port based refinery of the city. It is the result of a joint venture between The Murugappa Group-owned EID Parry (India) and Cargill International. Various rice mills are also located in and around the city and the port is used for the exportation of rice. Steel industry has seen some growth after 1980s in the city and various companies such as Sri Ramadas Motor Transport Limited and Sri Bhavani Castings Limited have their presence here.
Fishing and Aqua Culture Industry in Kakinada
Fishing has always been one of the most important economic sources of the city. One fishing wharf and 28 landing centers situated here make it perfect for fishing industry. APSIFT (Andhra Pradesh State Institute of Fisheries Technology), a research and training center on fisheries was established by the Andhra Pradesh government in 1958 to recognizing the importance of fishing and aquaculture industry. The CIFE (Central Institute of Fisheries education), a deemed university also has its campus in Kakinada and was established by the Indian government in 1961. Several aqua farms and many units that process and export shrimp, fish and other marine products are located here.
Edible Oil Refineries and Bio fuel Plants in Kakinada
Several edible oil refineries are located in Kakinada since 2002. They have a capacity of refining 3000 tons edible oil per day. Ruchi Infrastructure, Acalmar Oils and Fats (taken over by Adani Wilmar) and Nikhil Refineries are among the most reputed refineries of the city. Port of the city helps in importing crude palm and soybean oil. Biodiesel companies such as Naturol Bioenergy, Universal Bio Fuel and Reliance Industries have made investments of over $10 millions in Vakalapudi Industrial Park of the city. Andhra Pradesh government is taking various steps to increase the production of biodiesel fuel and entering into an agreement with Reliance Industries for jatropha planting is the result of the same. Reliance Industries has selected 200 acres of land in Kakinada for the same project.
Import and Export Industry in Kakinada
The city is known to export fish and fish related products, processed food products, agricultural products, iron ore, chemicals, bauxite powder and biofuel. Agriculture products include like rice, corn and oilmeals. While on the other hand, the city imports chemicals, edible oils and agricultural products including wheat and sugar. Kakinada port is the main reason of growth and development of import and export industry of the city. Hope Island is located at a mere distance of about 5 Kms from the coast and makes Kakinada Port a natural harbor. It has an anchorage port and a deep-water port. The latter one is the second largest in the entire state and was built in 1996.