Mahindra World City in JV with Sumitomo

The partners will invest Rs.375 cr in the Industrial Park including cost of land and infrastructure.

May 28, 2015 11:41 pm | Updated May 29, 2015 12:00 am IST - MUMBAI:

Akito Shiraishi (Left), General Manager, Overseas Industrial Park Department, Sumitomo Corporation, Anita Arjundas, MD and  CEO, Mahindra Lifespace Developers Ltd., President - Real Estate Sector, Mahindra Group, Member of The Group Executive Board and Masahiro Narikiyo, CMD, Sumitomo Corporation India Pvt Ltd at a press conference in Mumbai on Thursday.

Akito Shiraishi (Left), General Manager, Overseas Industrial Park Department, Sumitomo Corporation, Anita Arjundas, MD and CEO, Mahindra Lifespace Developers Ltd., President - Real Estate Sector, Mahindra Group, Member of The Group Executive Board and Masahiro Narikiyo, CMD, Sumitomo Corporation India Pvt Ltd at a press conference in Mumbai on Thursday.

Mahindra World City Developers Ltd (MWCDL), a subsidiary of Mahindra Lifespace Developers Ltd of the Mahindra Group and Sumitomo Corporation   of Japan   have entered into an agreement to form a joint venture to set up an industrial park in North Chennai (the NH5 corridor). 

The joint venture company — Mahindra Industrial Park Chennai Ltd — will have 60 per cent equity participation from Mahindra World City and the balance 40 per cent from Sumitomo.

The industrial park is targeted at Japanese companies which would be interested to set up base in India under the Union Government’s Make-in-India initiative. Considering Sumitomo’s involvement in the venture, Japanese companies will find it easy to operate from here. Already over 500 Japanese companies are operating from industrial zones in Tamil Nadu.

Smart city project

In the first phase, the industrial park will come up on a 300 acre land in North Chennai, identified among India’s 100 smart city projects. The joint venture partners will invest Rs.375 crore in the industrial park including cost of land and infrastructure. This is for the first time that Sumitomo is entering into industrial parks business in India.

Anita Arjundas, MD & CEO, Mahindra Lifespace Developers Ltd said “We already have 600-700 acres of land just 35 km away from Chennai and this land parcel is strategically located. Out of this, 300 acres will be transferred to the joint venture and we still have scope to expand in the second phase in case of need. We have completed master planning and we will allot land to companies from next year after obtaining all approvals and developing necessary infrastructure.”

Maiden venture

“While it is our maiden venture together, our experience will certainly create an industrial park which will attract companies from across the world to set up their facilities in an enabling environment. The joint venture is poised to reap the benefits of best practices from both the groups,” she said.

Besides Japanese companies, the joint venture partners are also targeting companies from China, Taiwan, Korea, the U.S. and Germany. The focus sectors include automotive and auto ancillary, engineering, food processing, electronics and hardware and logistics.  

We already have 600-700 acres of land just 35 km away from Chennai and this land parcel is strategically located.- Anita Arjundas, MD & CEO, Mahindra Lifespace Developers Ltd.

Akito Shiraishi, General Manager, Overseas Industrial Park Department, Sumitomo Corporation said, “Tamil Nadu is one of the most preferred destinations for Japanese investors in India, with over 557 Japanese companies having already setup their facilities in the state. We are encouraged by the proactive stance of the Government at the Centre and we see a lot of potential for this venture attracting investments of the right pedigree, and being an extremely successful venture.

MLDL has pioneered the concept of integrated business cities in India and established two such cities — Mahindra World City Chennai in 2002 and Mahindra World City Jaipur in 2007 using the Public Private Partnership (PPP) model with the respective State Industrial Development Corporations.

MWC, Chennai, is a joint venture between MLDL and Tamil Nadu Industrial Development Corporation (TIDCO) spanning over 1,500 acre and comprises product specific special economic zones (SEZs) and a domestic tariff area (DTA). It houses more than 64 blue chip companies including BASF, BMW, Fujitec, Infosys, Renault Nissan to name a few. MWC. Chennai has garnered a cumulative investment of Rs.5,000 crore, generated cumulative exports of Rs.34,000 crore and employment for 37,000 people since its establishment.

MWC, Jaipur, built on the same model in 2007 is spread over 3,000 acre. It houses 64 customers including Deutsche Bank, Infosys, JCB & Perto to name a few. It has attracted cumulative investment of Rs.1,200 crore, cumulative exports of Rs.3,000 crore and generated employment for 6,000 persons till date.

Tamil Nadu is one of the most preferred destinations for Japanese investors in India, with over 557 Japanese companies having already setup their facilities in the state.- Akito Shiraishi, General Manager, Overseas Industrial Park Department, Sumitomo Corporation.

JOINT VENTURE DETAILS

1. Name of the JV:

Mahindra Industrial Park Chennai Ltd.

2 Location:

North Chennai, Tamil Nadu

3. Shareholder composition:

Mahindra World City Developers Ltd 60 % Sumitomo Corporation 40 %

4. Investment:

Rs.375 crore

5. Proposed area for development:

300 acre

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