More player will join the Coimbatore Real Estate race
Indu Projects to invest Rs 12,000 crore in sector
Hyderabad-based Indu Projects Limited (IPL) has lined up commercial and residential projects valued at Rs 12,000 crore to be executed over the next five years. The company will be constructing 2.8 crore square feet (sft) of plinth area at Hyderabad, Bangalore, Pune, Coimbatore, Chennai and Nandyal. IPL's on-going and proposed projects in Hyderabad include a 60-lakh sft information technology special economic zone and an adjacent 40 lakh sft integrated township near the upcoming international airport, as well as a 19 lakh sft commercial space at Gachibowli, and a smaller 6 lakh sft commercial space. In addition, it would be building 25 lakh sft residential area at Kukatpally and 15 lakh sft residential space at Uppal. Besides, it was building 6 lakh sft residential township at Nandyal in the state. Outside Andhra Pradesh, the company was constructing a 20-lakh sft residential complex on a 47-acre site in Bangalore. The company, in partnership with other real estate enterprises, is currently negotiating purchase of 1,000 acres of land in Coimbatore, a 500-acre site in Pune and a 25-acre site in Chennai.
“We want to become a $1 billion group by 2011,” IPL managing director and chief executive officer, I Syam Prasad Reddy, told Business Standard. Since 2002-03, there has been more than 100 per cent year-on-year growth in the turnover of IPL. In 2005-06, the company's turnover stood at Rs 312.21 crore, an increase of about 143 per cent over the previous year turnover of Rs 128.49 crore. In the current financial year, the company is expecting a turnover of Rs 550 crore. Reddy said the projects were being funded through bank loans and sales realisation. The company was also looking towards private placement of its equity to raise money for financing the proposed projects. During the first half of this year, the company raised Rs 90 crore by diluting 8.9 per cent of its equity at Rs 900 per share. He said that in future IPL would be restructured into two separate entities -- real estate and construction. Following this, one of the two entities would come out with an initial public offering. With the objective of completing the projects on time, he said, IPL was looking forward to acquiring a foreign curtain glazing company, and it was most likely to be one located in China. It was also planning to takeover or acquire a majority stake in an existing mechanical and electrical company.
The company would be adding about 400 more people to its existing workforce of 600. Established in 2001, IPL began as a construction company and diversified into real estate business in 2005 in partnership with the Embassy group of Bangalore and the Avinash Bhosle group of Pune. The company had recently gifted $ 550,000 to the Indian School of Business to fund a research chair for 'Real estate & urban studies'.
Source: Business Standard
ETA Ascon to invest $600 mn in India
CHENNAI: Dubai-based ETA Ascon business conglomerate views India as a land of multiple opportunities and has chalked out big plans for pumping in huge investment in infrastructure, manufacturing and service secctors.
Syed M Salahuddin, managing director, ETA Ascon group of companies told ET in Chennai, " We are definitely looking at India as a big opportunity to grow our businesses. We have envisaged a capital investment of $ 500 to 600 Million in the next two years of which our equity investment will be $ 100 to 150 Million".
Founded in 1973, ETA group employs over 40,000 people and has revenues of over $ 3 Billion. It has operations mainly in UAE and India with interests in areas like construction, manufacturing, trading, shipping, retail, leisure, facilities management, automobiles, insurance and IT
He said the group has identified certain areas for investment. These building port facilities including private ports, special economic zones, independepent power plants based on coal and industrial goods like lifts and elevators.
It is also interested in building container terminals and handling cargo containers. Now, containers are transported by public sector Container corporation of India. ETA is among the 14 new players approved by the Government for moving containers from inland container depots. It will operate the service from Mumbai to Delhi with its own ICDs.
Mr Salahuddin said it proposes to build IPPs mainly on the East coast by entering into power purchase agreement with power trading corporation. In view of the construction boom, there is a huge market for lifts and elevators and the group represented Mitsubishi for marketing them in India.
He said the group has built a culture of growing in a organic way without taking the M & A route. It also plans to enter the property market in a big way by constructing houses in Bangalore and Chennai and major tier II cities like Coimbatore, Chandigarh and Nagpur.
In financial services, the group is looking at setting up call centres and BPOs in India for servicing clients in Middle East and the US. Recently, it floated a JV with Sundaram Business services of Sundaram Finance group for tapping the BPO markets in UAE and other countries.
The MD also expected Star Health and allied insurance ( India’s first stand alone health insurance company) to do well in the next two years with growing awareness for medical insurance. Asked about its foray into the banking sector, he said, " We are definitely watching that opportunity also".
Mr Salahuddin, who recently received pravasi Bharathiya Samman ( best achiever non resident indian) award from President of India , Dr A P J Abdul Kalam said there is a wealth of capital available in Gulf countries generated out of big margin on crude products.
About 30% of Gulf companies have long connection with India. They are keen on teaming up with NRI entrepreneurs and managers for investment in India. If their proposals with ETA group is considered, total capital investment in India will exceed $ One Billion, he pointed out.
In order to quickly attract their investment, Indian Government has to conduct road shows and create an awareness in the Gulf Region. Being a democracy, India has its owns problems. But, if it has to grow fast like China, it has to overcome infrastructure constraints.
Mr Salahuddin said , " India is endowed with natural resources like mining materials and water as well as vast human resources. Besides the skilled labour, over the years, it has developed a large managerial and entrepreneurial class. It also has a big market. So, naturally, India has to grow. No one can stop its growth".
" Our knowledge power is our unique strength. We are definitely better than others. No other country has chosen a scientist ( Dr Kalam) as its President", he noted.
Source: Times News Network
Syed M Salahuddin, managing director, ETA Ascon group of companies told ET in Chennai, " We are definitely looking at India as a big opportunity to grow our businesses. We have envisaged a capital investment of $ 500 to 600 Million in the next two years of which our equity investment will be $ 100 to 150 Million".
Founded in 1973, ETA group employs over 40,000 people and has revenues of over $ 3 Billion. It has operations mainly in UAE and India with interests in areas like construction, manufacturing, trading, shipping, retail, leisure, facilities management, automobiles, insurance and IT
He said the group has identified certain areas for investment. These building port facilities including private ports, special economic zones, independepent power plants based on coal and industrial goods like lifts and elevators.
It is also interested in building container terminals and handling cargo containers. Now, containers are transported by public sector Container corporation of India. ETA is among the 14 new players approved by the Government for moving containers from inland container depots. It will operate the service from Mumbai to Delhi with its own ICDs.
Mr Salahuddin said it proposes to build IPPs mainly on the East coast by entering into power purchase agreement with power trading corporation. In view of the construction boom, there is a huge market for lifts and elevators and the group represented Mitsubishi for marketing them in India.
He said the group has built a culture of growing in a organic way without taking the M & A route. It also plans to enter the property market in a big way by constructing houses in Bangalore and Chennai and major tier II cities like Coimbatore, Chandigarh and Nagpur.
In financial services, the group is looking at setting up call centres and BPOs in India for servicing clients in Middle East and the US. Recently, it floated a JV with Sundaram Business services of Sundaram Finance group for tapping the BPO markets in UAE and other countries.
The MD also expected Star Health and allied insurance ( India’s first stand alone health insurance company) to do well in the next two years with growing awareness for medical insurance. Asked about its foray into the banking sector, he said, " We are definitely watching that opportunity also".
Mr Salahuddin, who recently received pravasi Bharathiya Samman ( best achiever non resident indian) award from President of India , Dr A P J Abdul Kalam said there is a wealth of capital available in Gulf countries generated out of big margin on crude products.
About 30% of Gulf companies have long connection with India. They are keen on teaming up with NRI entrepreneurs and managers for investment in India. If their proposals with ETA group is considered, total capital investment in India will exceed $ One Billion, he pointed out.
In order to quickly attract their investment, Indian Government has to conduct road shows and create an awareness in the Gulf Region. Being a democracy, India has its owns problems. But, if it has to grow fast like China, it has to overcome infrastructure constraints.
Mr Salahuddin said , " India is endowed with natural resources like mining materials and water as well as vast human resources. Besides the skilled labour, over the years, it has developed a large managerial and entrepreneurial class. It also has a big market. So, naturally, India has to grow. No one can stop its growth".
" Our knowledge power is our unique strength. We are definitely better than others. No other country has chosen a scientist ( Dr Kalam) as its President", he noted.
Source: Times News Network
P.S. Group aims at pan-India presence
The P.S. Group on Thursday announced plans to expand its footprint to places such as Chennai, Coimbatore, Chandigarh, Pune and Jaipur.
Over the next three years, the company will set up five shopping malls, 40 million sq. ft. in the form of townships and residential complexes and 10 million sq. ft. of IT space in the form of SEZs.
Addressing a news conference here, Mr Pradeep Kumar Chopra, Director of the PS Group, said the implementation of the projects at hand would entail an investment of Rs 1,500-2,500 crore. While the promoters would pump in 20 per cent of the funds that would be required, another 13 per cent was being raised from hedge funds. The company was firming up plans to float an initial public offering within the next two years.
The projects in Chennai include the setting up of a shopping mall at Velachery, a housing complex at Padur on Old Mahabalipuram Road and a housing complex next to the Tamil Nadu Infotech Park at Siruseri. In Coimbatore, it will set up a shopping mall and an upmarket residential complex at the City Centre.
In Chandigarh, an IT SEZ is proposed to be set up. In Pune, the group has proposed to set up a special township project at Hinjewadi next to the Rajiv Gandhi Infotech Park. In Jaipur, the Group is setting up India's first education SEZ in collaboration with the Government of Rajasthan.
On Thursday, the group also unveiled its 100th project, Trinity Plush — a high-tech retail-cum-commercial complex — in Kolkata.
Source: Thehindubusinessline.
