Aequs Infra Teams Up with Karnataka Government for Phase 2 Development of Hubballi-Dharwad FMCG Cluster.

Aequs Infra, a Karnataka-based company under Aequs Private Limited, has partnered with the Karnataka government to advance the second phase of the Hubballi-Dharwad FMCG cluster, marking a milestone as the state’s first FMCG park developed through a public-private partnership. Ullas Kamath, Chairman of FICCI Karnataka State Council and the Vision Group, highlighted that this ambitious project is expected to draw ₹10,000 crore in investments over the next 5 to 10 years, with development planned in three phases.

Phase one of the cluster is already underway, while phase two, led by Aequs Infra at the Hubballi Consumer Cluster (HDC), is projected to attract ₹2,500 crore in investments. The initiative falls under Karnataka’s Kalyan Karnataka and Beyond IT/BT strategy to reestablish the state as a manufacturing hub. "Historically, Karnataka has been the manufacturing hub of the country. We want to bring that phase back," Kamath noted.

As part of the initiative, the government is offering robust incentives, including a 20% subsidy on fixed assets (up to ₹25 crore) and a 3% performance-linked incentive on annual turnover for five years, capped at 100% of fixed asset value.

The FMCG cluster has attracted interest from several industry majors, with companies like Jyoti Labs and MDH Masala already signing on for phase one.

Originally announced in the 2020-21 budget, the FMCG cluster in Dharwad district is designed to boost Karnataka's manufacturing sector. Located in the Mummigatti KIADB industrial area, the park is expected to generate between 50,000 and 100,000 jobs per phase, underscoring its potential to drive economic growth in the region.

HBL