Smartphone manufacturers Micromax, Karbonn Mobiles and Celkon have signed agreements with the Andhra Pradesh government to set up manufacturing units at the hardware hub in Tirupati. The state government is also in talks with more mobile handset and component makers, including Lava and Intex.

The Andhra Pradesh government is aiming to attract at least 30 mobile and electronic gadget manufacturers for creating a large electronics hardware ecosystem. To this end, the government has formulated attractive industrial policies with special incentives pertaining to value added tax (VAT) exemption to attract electronic hardware and components manufacturers. It has also identified government land close to the air cargo facility of Renigunta airport to allot it to hardware component makers.