The state government has roped in the Union Bank of Switzerland and Franklin Templeton for investing in the 20,000-acre Knowledge Corridor.
The two entities will be setting up their backoffice operations at Nanakramguda, on the city outskirts, which the state has earmarked for setting up a financial district.
Attracting these financial entities has been part of the state government's decision with regard to setting up a financial district in the Knowledge Corridor.
While UBS has been given the provisional allotment letter for 11.66 acres of land in that area, Franklin Templeton has been allotted 15 acres of land.
The land has been allotted at the rate of around Rs 80 lakh (Rs 8 million) per acre, amounting to more than Rs 9 crore (Rs 90 million) of investment from UBS and Rs 12 crore (Rs 120 million) from Franklin Templeton, according to Andhra Pradesh Industrial Infrastructure Corporation sources.
Earlier, there were reports about Franklin Templeton's plans to set up its backoffice operations at Banjara Hills in Hyderabad, though nothing emerged out of it later.
However, according to APIIC sources, this time it is confirmed that the financial entity will set up its operations at Nanakramguda as it has already been allotted land for the aforesaid purpose.
Franklin Templeton is one of the largest financial service groups based in the US that has $417.3 billion in assets under management globally.
It started its operations in India in 1996 where it manages Rs 16,254.84 crore (Rs 162.55 billion) of assets and has a presence in 33 locations nationwide.
UBS, one of the largest banking and financial services group in the world, reported net profit attributable to its shareholders of CHF 2,625 million in the first quarter of 2005 with the total operating income for its financial businesses being CHF 10,104 million during the same period.
It operates in over 50 countries and has a branch in Mumbai in India. UBS employs 67,424 people worldwide out of which 38.5 per cent are located in Switzerland, 38.9 per cent in the Americas, 16 per cent in Europe and the remaining 6.6 per cent in Asia.
Besides the international firms, regulatory bodies like the Insurance Regulatory Development Authority have also been allotted five acres of land in the area.
IRDA will also have a neighbour in the area in the form of Institute of Insurance and Risk Management that has been allotted five acres of land as well.
Local players including Andhra Bank also seem to be keen on getting 10 acres of land in the area. According to sources, Andhra Bank is likely to get the final allotment in due course of time.
