UAE Food Cluster MoU, US$1.2M Gujarat plant anchor Andhra Pradesh’s food processing packaging hub

INDIA – Andhra Pradesh Economic Development Board has signed a food processing cluster MoU with the UAE Food Cluster, backed by a ₹100 crore (US$1.20 million) investment from Dubai-based Floor Masters International, targeting export-ready packaging and cold-chain logistics across 25 countries.

The agreement, formalized on 21 July 2026 at the state secretariat in Amaravati, follows commitments made during Chief Minister N. Chandrababu Naidu’s meeting with UAE Minister of Economy and Tourism Abdulla Bin Touq Al Marri at the World Economic Forum in Davos earlier this year. 

Floor Masters International, which exports food products to approximately 25 countries, will establish its processing unit at Gangadhara Nellore in Chittoor district, manufacturing tortillas and flatbreads for overseas markets. 

The facility is expected to be operational within six months. 

Integrated Cold Chain, Port Logistics and Export Packaging Infrastructure Underpin Value Chain

The partnership covers horticultural products including mangoes, bananas and cocoa, alongside seafood, dairy, poultry and pulses, through cold-chain facilities and shipping links via Krishnapatnam and Kakinada ports. 

Andhra Pradesh accounts for 15.6 percent of India’s fruit production and contributes 32 percent of national marine seafood exports, with over 200 horticulture clusters and 6,000 registered food processing units. 

The UAE Food Cluster model is designed as an ecosystem connecting farming, manufacturing, logistics and distribution rather than a single industrial estate. 

More than 32 companies from both countries participated in a business forum covering seafood, aquaculture, cold storage and distribution, with packaging identified as a critical link in the value chain for export readiness.

Government Targets and Strategic Positioning for Global Food Exports

Chief Minister Naidu announced plans to transform Rayalaseema into a major horticulture hub with ₹1 lakh crore (US$11.98 billion) in public and private investments, while establishing the Indian School of Agriculture in partnership with Reliance Industries. 

Andhra Pradesh’s food processing sector contributes 9 percent of India’s food processing output, valued at US$49 billion, with the state targeting ₹30,000 crore (US$3.59 billion) in food processing investments. 

UAE Minister Al Marri confirmed the UAE aims to strengthen exports of dairy, poultry, seafood and pulses from Andhra Pradesh to global markets, including the United States, through enhanced shipping connectivity. 

The state’s AP Food Processing Policy 4.0 offers investment subsidies, power cost subsidies and single-window clearances to attract foreign investment. 

The packaging and cold-chain components of the cluster are expected to address a critical gap for exporters who have previously faced challenges with product shelf life and presentation in international markets.

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