Wednesday, October 20, 2021

Table of Contents for Ticker Tape

Ticker Tape - Construction

Hines, Conscient Infra to invest close to Rs.700 cr. in second phase of residential project in Gurgaon

Hines and Conscient Infrastructure Pvt Ltd an international real estate firm have launched the second phase of their joint venture project Elevate and are planning to invest close to Rs.700 crore in it. The total cost involved on the project is Rs.1,500 crore out of which 55 percent has been spent on Phase I (approximately Rs.800 crore) and about 45 percent is dedicated to Phase II, that is approximately Rs.700 crore. Phase II of Elevate will offer 248 apartments. Customers can choose from 3BKH, 3BHK + powder room and 3BHK + powder room and a study. The first phase of the project was launched in June 2019 and has clocked sales of over Rs.900 crore.


Hines and Conscient announced a joint venture to develop Elevate in June 2019. The premium project is Hines’ first residential venture in India. Conscient Infrastructure is the developer for the project while Hines is the investment manager and advisor.


The first phase launched in 2019 has 300 units and the second phase has close to 250 units. The project is located on Golf Course Extension Road in Sector 59 and is being constructed by TATA Projects. Hines launched the residential projects before COVID-19. The company has launched three commercial projects so far. Currently, the company has three housing projects under construction. It has partnered with Tata Housing to develop 750 flats in Serein’ housing project in Mumbai. Another 1,050 apartments are under construction in ‘Parkwest’ housing project in Bengaluru, being developed in partnership with Shapoorji and Pallonji Real Estate.


On the commercial front, Hines, in partnership with DLF Ltd., has developed One Horizon Centre. This has been developed on an 11-acre site located on Golf Course Road in Gurgaon. In March last year, Hines had acquired 33 percent stake in DLF’s upcoming commercial project in Gurugram in a deal size estimated at around Rs.650 crore.


DLF and Hines would jointly develop a prime commercial project on 11.76-acre land parcel in Gurugram that was bought for nearly Rs.1,500 crore through e-auction conducted by the Haryana government in February 2018.


In July last year, the US-based realty firm had announced its partnership with Bengaluru-based DNR group to develop an office complex in the IT city with 1 million sq ft of built-up area. It serves as a development manager for this project called Altitude, a 730,000-square-foot, 20-story international quality office tower with accompanying amenity spaces.


It has already exited from its first commercial project Skyview Corporate Park, which it developed in partnership with Shyam Telecom.


Hines is a global real estate investment firm with a presence in 205 cities across 24 countries. It entered India in 2006 and has so far invested $400 million equity for the development of six projects, of which two are already completed.




JK Lakshmi Cement to invest in augmenting existing capacities in North, West markets

JK Lakshmi Cement will selectively invest in augmenting its existing capacities in Northern and Western markets in next few years in a bid to enhance its footprint as well as market share. It has drawn up ambitious growth plans including expansion of manufacturing base, adding new products and entering into new markets, according to the latest annual report of JK Lakshmi Cement Ltd. The company expects “significant change” in construction technologies and practices, which in turn will bring exponential growth of demand for ready-to-use value-added construction products.


The government’s continuous emphasis on affordable housing and infrastructure augurs well for the economy in general and the cement Industry in particular. According to the company, once the storm caused by the pandemic settles down, the cement industry shall witness a “prolonged phase of stable demand growth” of about 5 to 6 per cent per annum, though the momentum lost during COVID may still take some time to fully recover.




Ambuja Cements to invest Rs.310 crore to expand Ropar unit in Punjab

Ambuja Cements, part of Swiss building material major Holcim group (earlier, LafargeHolcim) will invest Rs.310 crore to expand the production capacity of its plant at Ropar, Punjab, over the next two years. The said investment is a part of Ambuja Cements Ltd (ACL) aim to have a total cement capacity to 50 MTPA (million tonnes per annum) in the mid-term and in anticipation of a growing demand for cement triggered by the steady growth in India’s urbanisation leading to more investment in public infrastructure and housing, the company said in a statement. The expansion at the Ropar plant is expected to be completed by June 2023 and after this total capacity of the cement grinding unit at Ropar will increase to 4.5 MTPA from 3 MTPA now, it added.


This expansion will help the company maintain its share and competitiveness in the northern markets in India. The Ropar brownfield expansion is part of the company’s strategy to increase its total cement capacity to 50 MTPA in the mid-term.


The expansion of our Ropar unit along with more investment in the coming years will help the company unlock fresh opportunities by debottlenecking of existing capacities and create new ones across the country. The company expects its expansion plans to add around 15 MTPA capacity in the mid-term taking our total cement capacity to 50 MTPA.


Ambuja will also be commissioning new capacity in Marwar, Rajasthan, that will enhance clinker capacity by 3 MTPA and help increase cement sales by 5 MTPA, thereby contributing to the long term strategy of capacity expansion.


This greenfield integrated plant is being set up with a total investment of Rs.2,350 crore. Ambuja Cement has a cement capacity of 29.65 MTPA with five integrated cement manufacturing plants and eight cement grinding units across the country.




Maharashtra Govt kick starts redevelopment of BDD chawls spread over 92 acres in central Mumbai
The redevelopment of 195 chawls (buildings with small tenements) spread across in Worli, Naigaon and Lower Parel is expected to take three years.


After several years of delay, the redevelopment of Bombay Development Department (BDD) chawls, spread across 86.98 acres in central Mumbai, took off on Sunday, as Chief Minister Uddhav Thackeray and Nationalist Congress Party Chief Sharad Pawar laid the foundation stone for the project.


Mooted in the 1990s, the redevelopment of the British-era chawls faced several hurdles and delays. The redevelopment of 195 chawls (buildings with small tenements) spread across in Worli, Naigaon and Lower Parel is expected to take three years, following which over 9,500 families will get a 500 sq.ft. house of their ownership. As the housing colonies are now over 90 years old and have completed their life-cycle, the state government decided on its redevelopment.

The project

The 195 chawls occupy 86.98 acres, with the Worli BDD chawls occupying the maximum area of 59.69 acres. Of the 195 BDD chawls, the maximum of 121 chawls and 9,689 beneficiaries are in Worli. In all, there are 16,203 tenements, of which 2,937 tenements have been earmarked for police housing.


The Maharashtra Housing and Area Development Authority (MHADA) has been appointed as the nodal agency for the entire project, while a consortium of Tata Projects and Capacite Infraprojects will undertake the Worli phase of the project that is expected to be completed in three years. The buildings will be 40-storey and will also have amenities, including open spaces, volleyball court, etc. The government has decided to keep one chawl building housing 80 houses intact and convert it into a museum.


Built in the 1920s as a low-cost housing solution for the city, these chawls in central Mumbai became the identity of Mumbai. Used as a British-era prison initially, following which it was housed middle-class Marathi mill workers, mainly from the Konkan region, the Shiv Sena’s stronghold.


The idea to first redevelop these chawls was mooted in the mid-1990s but never took off. The project was launched in 2017 under Devendra Fadnavis’ tenure, but it was entangled in several complexities and the contract lapsed.


The politics

Central Mumbai, which is dotted with chawls and lower-middle class dwellings, has been a traditional stronghold and vote bank for the Shiv Sena. The Marathi population in these areas has been a part of the party’s journey since the mid-1960s and has largely backed them politically.


The kick-off of the project assumes greater political significance for the Sena, ahead of the civic election in February 2022. Chief minister Thackeray said the chawls have given a lot to Mumbai for which they will be indebted to them.




JSW Cement to raise Rs.1,500 cr from Apollo Global Management, Synergy Metals

JSW Cement, part of the $13 billion JSW Group, recently announced a deal to raise Rs.1,500 crore from two global private equity investors - Apollo Global Management Inc and Synergy Metals Investments Holding. The company will issue convertible preference shares (CCPS) to the two global equity investors to raise the amount, which will help it drive the next phase of growth.


The transaction is a structured private equity deal wherein CCPS are being issued to the investors and the conversion of such CCPS into common equity of the company will be linked to the company’s future performance and valuation determined at the time of the initial public offering.


This investment will help JSW Cement accelerate its capacity expansion from the current 14 MTPA (Millon Tonnes per annum) to 25 MTPA. Fair trade regulator CCI had earlier this month granted its nod to Synergy Metals Investments Holding Holding to acquire a stake in Sajjan Jindal-led JSW Cement. Apollo’s transaction is subject to customary closing conditions, including regulatory approval. Synergy Metals and Mining Fund is the parent entity of Synergy Metals Investments Holding, a specialised private equity fund investing in the industrial, metals and power sectors globally. Apollo Global Management is a leading global alternative asset manager.


JSW Cement has drawn an ambitious plan to expand its combined cement capacity to 25 million tonnes per annum by 2023 at a capex of Rs.3,600 crore. Its current capacity is 14 million tons per annum. It has plants at Vijayanagar in Karnataka, Nandyal in Andhra Pradesh, Dolvi in Maharashtra, Shiva Works in Odisha and Salboni in West Bengal.




Avigna group signs MoU with Tamil Nadu government; set to invest Rs.837 crore

Avigna Industrial & Logistics Park, part of Chennai-based Avigna Group has signed a Memorandum of Understanding (MoU) with the Tamil Nadu government for an investment of Rs.837 crore in the state. The agreement has been signed between Managing Director Rajasekaran S and Executive Director Abhijit Verma from Avigna Group and Tamil Nadu CM MK Stalin. Avigna will utilize the proposed investment to develop modern industrial development parks in various parts of Tamil Nadu in the coming years.


Avigna Industrial & Logistics Park currently has warehouses in Hosur (TN), Hoskote (Karnataka), and in the Nellore district of Andhra Pradesh and rapidly expanding its footprints in western, eastern and northern parts of the country as well.. This 10ft million sq ft project is going to revolutionize the way farmers trade their produce. Avigna Group is looking at a Pan India expansion and is currently building warehousing space of 3 million sq.ft each in in Hosur (Tamil Nadu) and Hoskote (Karnataka), 1 million sq. ft each in Chennai (TN) and Nellore (Andhra Pradesh) and 2 million sq.ft in Madurai (TN). Besides this, Avigna Group is envisaging to expand its base at Bhiwandi in Mumbai, Farruknagar in Haryana, Jaipur and Kolkata.




Kamdhenu to enhance capacity of steel TMT bars

Kamdhenu Limited outlined plans to enhance it’s steel TMT bars capacity through its franchisee production facilities from 38 lakh metric tonnes (MT) per annum to 50 lakh MT per annum over the next two years. The company brand also plans to enhance its production capacity of steel TMT bars by 25 per cent from 1.9 lakh MT to 2.4 lakh MT per annum in Telangana by the end of current financial year


Apart from its our facility in Bhiwadi in Rajasthan, the company has a network of 85 franchise units across the country whom it supports with technology and marketing, and also with its huge network of dealerships and strong brand name.”


Telangana is an important market for Kamdhenu and offers tremendous growth potential. With the opening of businesses and restart of the infrastructure and construction activities post the second Covid wave, the company expects escalation of demand of the steel products. According to Kamdhenu, its TMT bars are manufactured using advanced technology to provide optimum strength, ductility and toughness. They have excellent weld ability, better ductility and malleability making them earthquake resistant, and have high thermal resistance. Founded in 1994, Kamdhenu Group has sales turnover of Rs.12,000 crore. The company follows the franchisee business model and is supported by a chain of over 11,500 dealers.


The company had earlier launched earthquake resistant Kamdhenu PAS 10000 Steel and Kamdhenu Nxt TMT Bars. It’s other business, Kamdhenu Paints supplies paints through a network of 4,000 dealers and distributors spread across the country and has a turnover of about Rs.200 crore.




Tata Realty to invest Rs.4,000 cr in residential, commercial projects over next 2 years

Tata Realty and Infrastructure is investing around Rs.2,000 crore each into residential and commercial projects over the next two years, including re-launching the stalled Mulund project in Mumbai, on the back of a significant growth in sales last year and the steady pick-up in demand, a top company official has said.


The Tata Group firm, which focuses on residential, commercial and retail properties in the realty space and large infrastructure projects, is witnessing higher demand, especially for ready-to-move-in residential units now.


It has added over 1,500 construction workers during the pandemic, taking its overall headcount to over 5,000 now. Before the coronavirus pandemic, it had only 3,500 workers and over 670 employees. The company nets around 70 per cent of its sales from the affordable and premium units and the remainder comes from luxury projects. The company has 17 residential and three commercial projects under-construction with over 3,000 units and even amid the pandemic, it has completed four residential projects last year, and will complete six this year.




PMAY Urban delivered 50 lakh homes to beneficiaries in 5 years, says Hardeep Singh Puri

In line with the target of Housing for All 2022, the federal government’s Pradhan Mantri Awas Yojana-Urban (PMAY-U) has up to now sanctioned round 1.13 crore homes for its beneficiaries, out of which over 83 lakh homes are grounded and round 50 lakhs have been accomplished and delivered to beneficiaries, stated Hardeep Singh Puri, Minister of Housing & Urban Affairs.


The homes sanctioned up to now beneath this mission contain an funding of Rs.7.35 lakh crore with central authorities help of Rs.1.81 lakh crore. As of now, over Rs.1 lakh crore of central help has already been launched.


“JNNURM (Jawaharlal Nehru National Urban Renewal Mission of previous government) had delivered 8 lakh homes in 10 years and we have already delivered over 6 times and this will continue to grow,” Puri stated. “In few months we will be able to turn around and say that we have delivered 1.13 crore houses through four different verticals and that is a fantastic achievement.”


Puri attributed the success of the mission to its strong monetary mannequin together with Direct Benefit Transfer, use of data expertise for actual time monitoring and technological innovation, extra funding by means of further budgetary sources over and above budgetary allocations.


For sustained funding assist to maintain the tempo of building actions, over and above budgetary assist, a corpus of Rs.60,000 crore was mobilized beneath National Urban Housing Fund (NUHF) whereby Rs.43,000 Cr has already been drawn. Affordable Housing Fund of Rs.20,000 crore are additionally being utilized in the final 3 years.



Tata Steel Kalinganagar starts Robotic system for its Wagon Tippler operation

Tata Steel Kalinganagar, the state-of-the-art steel plant located in Jajpur District of Odisha, has introduced a new Robotic system for its Wagon Tippler operation. The tippling operations at the Raw-material Handling System of the steel plant, involves critical activities like decoupling, coupling, rotation and CBC alignment of wagon through manual intervention at inhaul and outhaul side. During every cycle, after a Wagon tippling operation on Tippler table, the empty wagons are to be coupled with empty wagons in the outhaul area. For man-machine interface while handling Railway wagons after tippling operation during each cycle, a new system of “Robotics Operation” has been introduced for Wagon Tippler.


T V Narendran, CEO & MD, Tata Steel Limited (TSL) inaugurated the new system on 21st July 2021. Under the new system of operation, the Wagon couplers at outhaul, before getting coupled, will be inspected through and aligned by a Robotic system. This will eliminate the man machine interface completely during each cycle of tippling, ensuring safety while contributing to enhanced productivity.


The new system has been installed in one of the Wagon Tipplers & will be horizontally deployed in others as well. This system is also supplemented by a uniquely designed Smart Fencing System with Automated Gate Locking Facility for restricting unauthorized entry during equipment operation.



NILA Spaces Limited to develop residential project at GIFT City, Gandhinagar

Nila Spaces Limited is in receipt of an FSI allotment confirmation from Gujarat International Finance Tec-City Company Limited (GIFT) for Residential Real Estate development at GIFT City, Gandhinagar. The allotment envisages development, construction, and marketing of the residential real estate project, wherein the Company can develop about 5.40 lakh sq ft Built Up Area (BUA) on a land plot admeasuring 5128 sq mtrs.


Recognizing the potential of the State as a Centre for the Financial Services industry, the Government of Gujarat, under the visionary leadership of the then CM Narendra Modi, formulated a mega project to develop a novel Central Business District (CBD) between Ahmedabad and Gandhinagar viz. the Gujarat International Finance Tec-City (GIFT). GIFT City is planned on 886 acres of land with 6.2 crore sq. ft. of BUA which includes Office spaces, Residential apartments, Schools, Hospitals, Hotels, Clubs, Retail and various Recreational facilities.


GIFT City is an emerging global financial and IT services hub, a first of its kind in India, designed to be at or above par with globally benchmarked CBDs. It is India’s first operational Greenfield Smart City and supported by state-of-the-art infrastructure encompassing all basic urban infrastructure elements along with an excellent external connectivity.


Additionally, GIFT City will have a metro station connecting it to the Ahmedabad metro network by March 2024. Companies from Financial Services, Technology and all other services sector have started occupying the city.


GIFT City is changing the economic face of Gujarat and would keep India on the global map as Centre of excellence in the Financial & IT / ITeS Services domain.




Gulshan Group to invest Rs.475 crore in a stuck project in Noida

NCR-based real estate developer Gulshan Group has formed a joint venture with Jaiprakash Associates Ltd. to complete 418 luxury apartments in Noida, Uttar Pradesh. The projects’ construction cost would be Rs.475 crore, and gross sales realization would be Rs.1200 crore. Jaiprakash Associates and Gulshan will jointly construct 113 apartments in ‘’Boomerang Residencies’’ and 305 flats in ‘’Kristal Court’’ project in Sector 128, Noida. JAL is a separate entity from Jaypee Infratech, which is into insolvency.


The overall saleable area is 15 lakh square feet, and the investment for project development will be from internal accruals and financial partners. The overall construction and delivery of these apartments is expected to be completed in the next 42 months. Recently, the Group had announced offering possession of 1,888 units in Gulshan Botnia (764 units) and Gulshan Bellina (1124 units). The company received the completion certificate for Botnia in July 2021 and for Bellina in June 2021. The company also plans to deliver Gulshan One29 this year around Diwali.

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