The Government of Andhra Pradesh signed an MoU with the Trade Promotion Council of India (TPCI) to develop a ₹3,500-crore (US$365.4 million) Furniture Mega Cluster near Gudur in Nellore district, Andhra Pradesh, India.

The Andhra Pradesh Furniture Mega Cluster (APFMC) is progressing rapidly, with authorities in Nellore district identifying 1,000 acres of land near Gudur for the proposed project. The site was finalized following an inspection by officials from the Trade Promotion Council of India (TPCI), who endorsed the location for development. The initiative stems from a memorandum of understanding signed between the Andhra Pradesh government and TPCI during the CII Partnership Summit 2025. To enhance the cluster's global competitiveness and market access, TPCI has also partnered with the World Furniture Confederation.

The proposed Furniture Mega Cluster is envisioned as a port-linked, integrated industrial hub encompassing the entire furniture value chain, from timber imports and processing to manufacturing and export of finished products. The development plan includes dedicated areas for timber processing, production facilities, logistics and warehousing, a Common Facility Centre (CFC), commercial display and retail spaces, and supporting residential infrastructure. Drawing inspiration from internationally renowned furniture manufacturing centres in China, Vietnam, Turkey, and Malaysia, the cluster is expected to host approximately 400–550 industrial units at full capacity. The project is proposed under a Public-Private Partnership (PPP) framework, with the Trade Promotion Council of India (TPCI) expected to invest ₹940–1,160 crore in infrastructure development and cluster management, while private sector participants are projected to invest ₹2,230–2,450 crore in manufacturing facilities, logistics, and real estate development.

According to official estimates, the proposed cluster will have the capacity to manufacture approximately 2 million furniture units, 4 million flat-pack furniture kits, and 1.5 million modular kitchen and wardrobe systems each year. Leveraging its strategic proximity to port infrastructure, the APFMC is envisioned as a key export-oriented manufacturing hub, with projected annual export revenues of ₹8,000–10,000 crore within five to seven years of becoming operational.