Andhra Pradesh signs MoU with UAE to establish food cluster; ₹100 crore processing unit planned

Dubai-based Floor Masters International plans to use Andhra Pradesh as its export base for 25 countries; UAE Minister of Economy and Tourism lauds government’s investor-friendly policy

Published - July 21, 2026 07:54 pm IST | VIJAYAWADA

By G.V.R. Subba Rao

The Andhra Pradesh government has signed a Memorandum of Understanding (MoU) with the United Arab Emirates (UAE) to establish a UAE Food Cluster in the State, advancing an investment commitment made during the World Economic Forum (WEF) in Davos earlier this year.

The agreement was signed between the Andhra Pradesh Economic Development Board (APEDB) and the UAE Food Cluster in the presence of Chief Minister N. Chandrababu Naidu and UAE Minister of Economy and Tourism Abdulla Bin Touq Al Marri at the State Secretariat in Amaravati on Tuesday.

Key Highlights

• Partnership objective: Promote investments, trade and exports by creating an integrated food processing value chain.
• Investment focus: UAE-based companies will be encouraged to invest in food processing, export-oriented manufacturing and value-added agricultural products, with emphasis on horticultural produce such as mangoes, bananas and cocoa.
• Infrastructure development: Strengthening export infrastructure and global market access.

First Investment Under the Initiative

Dubai-based Floor Masters International has announced an investment of ₹100 crore to establish a food processing unit at Gangadhara Nellore in Chittoor district. The facility will manufacture food products for export, with the company planning to use Andhra Pradesh as its export base for nearly 25 countries.

Official Statements

Chief Minister N. Chandrababu Naidu said the UAE had converted its Davos commitment into a reality within six months and expressed confidence that the Food Cluster would position Andhra Pradesh as a major hub for food processing and exports. He highlighted the State’s strengths in horticulture, aquaculture and logistics, noting that agriculture and horticulture contribute about 30% of the State’s Gross State Domestic Product.

He also announced plans to:

• Develop Rayalaseema into a horticulture hub with ₹1 lakh crore in investments.
• Establish the Indian School of Agriculture in partnership with Reliance Industries.

UAE Minister of Economy and Tourism Abdulla Bin Touq Al Marri described Andhra Pradesh as an attractive investment destination with abundant agricultural resources and praised the government’s investor-friendly policies and quick approvals. He confirmed that the UAE would invest in food processing, cold-chain infrastructure and related facilities while promoting exports of seafood, dairy, poultry, pulses and other products to global markets. He expressed confidence that improved shipping links through Krishnapatnam and Kakinada ports would further strengthen trade between Andhra Pradesh and the UAE.

Attendees

Senior UAE and Andhra Pradesh government officials, including Industries Minister T.G. Bharat and Chief Secretary G. Sai Prasad, were present at the signing ceremony.