In a bold bid to reshape Andhra Pradesh’s industrial landscape, the Aurobindo Group, through its infrastructure arm Auro Infra Pvt Ltd, is spearheading a mega infrastructure drive to develop the Kakinada Gateway Port and Special Economic Zone (SEZ) into a world-class logistics and industrial hub. With total investments exceeding ₹10,000 crore, this initiative is poised to elevate the region’s connectivity, catalyse manufacturing growth and anchor long-term economic activity along India’s eastern coastline.
The project’s centerpiece is the Kakinada Gateway Port, a deep-draft, multi-cargo facility being developed under the aegis of Kakinada Gateway Port Ltd (KGPL), a step-down subsidiary ultimately owned by Auro Infra. The first phase — featuring three berths with an initial capacity of 16 million metric tonnes per annum (MMTPA) — is expected to be operational by early 2027, with master plans outlining expansion to 50 MMTPA by 2028 and aspirations for 100 MMTPA in the long run. Such scale places the port on par with major eastern seaboard facilities, enhancing export potential and cargo throughput in a region already witnessing robust industrial activity.
Complementing the port is the emerging Kakinada SEZ and Auro Industrial City, a sprawling 5,600-acre industrial park designed to integrate manufacturing, logistics, processing and export-oriented units. This SEZ aims to leverage multi-modal connectivity — linking sea, rail and road networks — to attract businesses across sectors such as petrochemicals, food processing, pharmaceuticals, agro-products and clean energy. The presence of a dedicated seaport within this industrial zone is expected to significantly reduce supply-chain costs, improve time-to-market for exports and position the SEZ as a preferred destination for global investors.
Strategic financing underscores the project’s long-term viability. Auro Infra has structured funding on a conservative 70:30 debt-equity basis and secured financial closure with support from a consortium led by the State Bank of India, highlighting strong investor confidence in the initiative’s commercial logic and growth potential. Early investment of nearly ₹6,000 crore has already been deployed, mostly from promoter equity, underscoring the group’s commitment to delivering on its development roadmap.
The broader implications extend beyond cargo handling. By fostering an integrated industrial ecosystem anchored around port-led growth, the project is expected to generate significant employment, enhance export competitiveness and support Andhra Pradesh’s ambition to become a nodal point in India’s Visakhapatnam-Chennai Industrial Corridor — a flagship corridor supporting the Act East Policy and broader manufacturing ambitions.
While competition from established eastern ports such as Visakhapatnam, Gangavaram and Krishnapatnam remains a market reality, Aurobindo’s long-horizon vision — described by executives as “not just ships coming and going, but a 50-year strategy” — reflects confidence that robust infrastructure coupled with integrated industrial planning can create a sustainable logistics and industrial ecosystem on India’s east coast.
