Thursday, September 29, 2022

Table of Contents for Ticker Tape



Bullish on retail sector, Lulu Group plans to develop more shopping malls in India

Lulu group, which has built five shopping malls in India with Rs.7,000 crore investment, now plans to develop about a dozen more malls as the UAE-based group sees huge growth opportunities in the Indian retail space. The group has five operational malls in India at Kochi, Trivandrum, Thrissur, Bengaluru and Lucknow, comprising about 3.7 million square feet of leasable area.

Shibu Philips, Director-Shopping Malls of Lulu Group India, said the Indian retail market is still “under-utilised” with the share of organised retail being still low.

“India is an extremely important market for Lulu. It is a young population whose per capita income and consumption is increasing. It is a very under-utilised market because if you look at the organised retail, it is still only 12 per cent. So, I believe that there is a lot of opportunity here if you have the right business model. Lulu is completely focused on India,” he said

In the first phase of shopping mall business in India, Philips said the Lulu group invested about Rs.7,000 crore to develop five shopping malls, of which Bengaluru property is not owned by it.

Recently, the group launched a large shopping mall, comprising 2.2 million square feet of built-up area and one million square feet of leasable area, in Lucknow, Uttar Pradesh. The mall, developed at an investment of about Rs.2,000 crore, has over 300 international and national brands. About the future expansion of mall business in India, Philips said “we are planning to have smaller malls of around 0.5 million square feet in the major districts of Kerala.”

He said the group is currently constructing malls in Kerala in Calicut, Kottayam, Tirur, Perinthalmanna and Palakkad. Some of these properties will be fully owned and some will be on lease basis. That apart, it is refurbishing an existing mall in Hyderabad which will be operational in early 2023.

Philips said as many as six shopping malls are currently in the pipeline in Chennai, Ahmedabad, Prayagraj, Varanasi, Bengaluru and Noida. “We are actively looking at land in Ahmedabad for a one million square feet mall there. And we have a similar plan in mind for Chennai,” he said.

On planned investment for the second phase of expansion of mall business in India, he said the same is being finalised and will be announced in due course. In October last year, Lulu Group Chairman and Managing Director M A Yusuff Ali had told PTI that it sees tremendous growth potential in Indian retail segment, which was among most affected sector between April 2020 and July 2021 because of the coronavirus pandemic.

“Being a retail organisation with almost four decades of experience, we have gone through ups and downs. But obviously, the worst is behind us. Things cannot go worse than that. In difficult and challenging times, we have to make adjustments and fine-tunes things, but now I can fairly say with the confidence, it is only going forward. “Travel restrictions have eased out, people are vaccinated, they are more careful about themselves, people are eager to come out and enjoy and lead the life back. Enough of virtual and digital life. We are seeing tremendous growth potential,” Ali had observed.

Headquartered in Abu Dhabi, the diversified Lulu group has an annual turnover worth $8 billion. The group’s business portfolio ranges from hypermarket operations to shopping mall development, manufacturing and trading of goods, food processing plants, wholesale distribution, hospitality assets, and real estate development.

Lulu group has operations spread over 23 countries.


Brigade eyes Rs.4,000 crore sales revenue from two projects in Chennai, Bengaluru

Agreements have been signed for the strategic acquisition, securing the firm’s South Indian presence.

Realty firm Brigade Group has acquired a land parcel in Chennai from TVS group and partnered with landowners in Bengaluru to develop two real estate projects with a total revenue potential of Rs.4,000 crore in the next 4-5 years. They have signed definitive agreements for prime land parcels in the cities.

The agreement to purchase the Mount Road property in Chennai from the TVS Group company has a potential 1 million square feet of a mixed-use development comprising office, retail and residential. The joint development property in Bengaluru has a development potential of over 2 million square feet of residential apartments. M R Jaishankar, CMD, Brigade Group said, “We are constantly on the lookout to identify strategically located land parcels that we can acquire and develop. The acquisition of both these properties in Chennai and Bengaluru are part of our growth strategy as we continue to focus on South India with emphasis on Bengaluru, Chennai and Hyderabad.”

Brigade Group has a strong pipeline of upcoming projects of 10 million square feet with key projects in these cities.


Positive trends

On Tuesday, the firm reported a consolidated net profit of Rs.87.68 crore for the quarter ended June on better sales. It posted a net loss of Rs.40.09 crore in the year-ago period.

Total income doubled to Rs.920.28 crore in the first quarter of this fiscal from Rs.391.52 crore in the corresponding period of the previous year. “Demand continued to be robust, driven by strong sales in the residential sector during the quarter leasing business picking up and hotels have also started performing well. We expect the momentum to carry on,” said Jaishankar. “Enquiries have been high, with customer preference shifting towards larger homes, to accommodate the hybrid work model that many companies are still offering their employees.”

On the operational front, the company’s sales bookings stood at 1.2 million square feet with a value of Rs.814 crore during the quarter under review, a growth of 61 per cent in volume and 70 per cent in value over Q1 FY22 performance.

In commercial real estate, the net office space absorption in the June quarter was over 0.4 million square feet, nearly twice that of the same period a year ago. The rental collections remained stable and demand for the next two quarters is promising with active enquiries for over 1 million square feet across all properties, the company reported. In retail, across its three malls, Brigade witnessed a 35 per cent growth on like-to-like retailer consumption sales pre-Covid. Multiplexes witnessed an average growth of 33 per cent year-on-year for the April-June period.

Present in Bengaluru, Mysuru, Hyderabad, Chennai, and Kochi, the firm undertakes development projects across , residences, offices, retail and hotels.



Indiabulls Real Estate net debt down 54%, merger with Embassy Group underway

Indiabulls Real Estate has cut its net debt by 54% to Rs 464 crore during the three months ended June, compared to the March quarter. Besides, the merger with the Embassy Group is in the final stage of the National Company Law Tribunal (NCLT) review, the company said in its investor presentation. Its net debt stood at Rs.464 crore at the end of June quarter, as against Rs.1,005 crore as on March 31, 2022. Its gross debt fell to Rs.739 crore from Rs.1,310 crore. On the operational front, the company’s sales bookings fell to Rs.297 crore in the first quarter of this fiscal year, from Rs.350 crore in the corresponding period of the previous year.

In April, IBREL had raised Rs.865 crore by issuing shares to institutional investors mainly for land acquisition and debt reduction.

In August 2020, Embassy Group entered into a definitive agreement to merge its certain residential and commercial projects with IBREL through a cashless scheme of amalgamation. Embassy Group will become the promoters of the merged entity.

Merger with Embassy in the final stages of NCLT review and the next hearing in Chandigarh is scheduled on September 8, 2022, IBREL said. The proposed scheme for amalgamation of NAM Estates and Embassy One Commercial Property Developments into the IBREL is underway, it added. In February 2021, the Competition Commission of India (CCI) had approved the proposed merger of Embassy Group firms, NAM Estates Pvt Ltd and Embassy One Commercial Property Developments Pvt Ltd, with IBREL.

Embassy Group has around 14 per cent stake in IBREL and the same will increase to 45 per cent after the merger of assets of these two companies. Post-merger, the combined entity will have 80.8 million square feet of launched and planned development potential. The merged entity will have about 30 projects.

Under the terms of the agreement, IBREL’s shares are valued at Rs.92.5 per share. Last week, the company reported consolidated net loss of Rs.51.95 crore for the quarter ended June on lower income. Its net profit stood at Rs.4.76 crore in the year-ago period.

Total income fell to Rs.164.18 crore in the April-June quarter from Rs.532.03 crore in the corresponding period of the previous year, according to a regulatory filing.



MKS Ventures invests Rs.200 crore in the group’s first residential plots in Sohna, South Gurugram

NCR based real estate developer MKS Ventures will invest Rs.200 crore in developing group’s first residential plots in Sector-2, Sohna, South Gurugram. Three side open land parcel is spread across a total of 12.125 acres, and has been constructed under the DDJAY scheme. Located in a prime real estate corridor, MKS County residential plot project, is connected to Gurugram-Sohna Highway, which ensures excellent connectivity to all quarters of the Delhi-NCR region like Rajiv Chowk, Delhi Airport, MG Road.

The residential plots are of varying sizes, from 127 sq yards to 179 sq yards and can be built up to 4 floors (stories) for residents looking for large living spaces along with stilt area for parking.

“The MKS County project has been conceived to provide premium affordable housing and a plot living project to millions of homebuyers. They will be at the end of various benefits as the project has been covered under the DDJAY scheme,” said Sunil Totlani, Director, MKS Ventures.

The total cost of development expected to be around Rs.200 crore and will provide infrastructure amenities like STP plant, underground water tank, paved roads, street lights, electricity connection and dedicated site for children play area, dedicated in-park senior citizen activity area, badminton court, cricket pitch, jungle gym along with community centre. “It is being developed with world-class amenities that assure a quality lifestyle and environment without compromising on the eco-friendly benefits. The plots are being sold within an affordable price range and also provide customised home solutions. We will be coming up with many such projects in the future as well to deliver on the Haryana government’s vision to complete 1 lakh affordable housing projects in the state,” said Totlani.

MKS Ventures is working for commercial and residential projects including MKS Shiva Market in Pitampura North Delhi, MKS HUB Socio-Culture Centre in Rohini North Delhi and MKS County Plotted Residential Project on Delhi-Mumbai Expressway in South of Gurugram in Haryana.



Adani’s Alumina project among Rs.75k crore plans get approval by Odisha government

The Odisha government recently accorded in-principle approval to 10 major industrial projects worth Rs.74,620.18 crore, including Adani Enterprises Limited Alumina Refinery, which will generate employment opportunities for over 24,047 people in the state.

The projects which got the state government’s nod at the High-Level Clearance Authority Committee meeting chaired by Chief Minister Naveen Patnaik, were mostly in green hydrogen and green ammonia, metal and metal downstream, and infrastructure sectors. The 10 mega projects include Goutam Adani-led Adani Enterprises Limited’s plan to invest Rs.41,653 crore investment for setting up a 4.0 MTPA Alumina Refinery and 175 MW CPP Plant at Kashipur in Rayagada district. The project will generate employment opportunities for over 7,750 people.

The committee also approved the proposal of ReNew EFuels Private Limited (REFPL) to set up green hydrogen (capacity: 20 KTPA), green ammonia plant (capacity: 100 KTPA) in Paradip, Jagatsinghpur district, at an investment of Rs.2,000 crore which will generate employment opportunities for 2,000 persons.



Kolte-Patil Developers acquires 2.5-million-sq-ft residential project in Pune

Listed realty developer Kolte-Patil Developers has acquired a residential project with development potential of 2.5 million sq ft in Pune’s Kiwale locality through buyout of a company Sampada Realities. The transaction entails the acquisition of around 85% equity shares in Sampada Realities on an immediate basis, while the balance 15% stake will be acquired in due course.

With this transaction, Kolte-Patil Developers has committed an aggregate total investment of over Rs.120 crores to be paid over a period of time. The company is planning to launch the first phase of the project in the current quarter. Sampada Realities has one residential real estate project on around 25 acres of land parcel at Kiwale in Pune to be developed in a phased manner. The project has already secured all the required regulatory approvals.

The development represents a revenue opportunity of over Rs.1,400 crores for Kolte-Patil. This acquisition is expected to help further strengthen Kolte-Patil’s market position in the Pune property market, with substantial visibility in Kiwale, a high-potential micro market in the city. “This new project in our portfolio will be 100% owned by the company. This acquisition, other than being situated at the strong micro market of west Pune, is a plug and play deal, and is in line with our business development target of Rs.7,000 crores for this year. We continue to evaluate more such opportunities to meet our growth objectives across Pune, Mumbai and Bangalore,” said Rahul Talele, Group CEO, Kolte Patil Developers.

According to Talele, the company is focussing on developing a diversified portfolio that benefits from the demand and locational drivers across multiple projects in its focus markets to create a diverse growth framework and drive value for all stakeholders.

Kiwale is strategically located at the junction of old NH4 Highway, Katraj-Dehu Road, and Mumbai-Pune Expressway, and provides seamless access to Hinjewadi IT Hub, Pune city and the industrial belt of north-western Pune. The real estate sector is witnessing robust growth in this region in line with the general trend across the markets and is expected to continue the momentum hereon.

The ongoing consolidation in the real estate sector has accelerated due to the outbreak of the Covid-19 pandemic. Large established and listed realty developers have gained more market share in terms of sales and liquidity, as homebuyers are preferring to book properties of developers with sound execution track record and financial position




Panattoni to invest $200 million in constructing 4 logistics parks in India

In an effort to meet the rising demand for warehouse space across major cities, US-based Panattoni has expanded into India and will invest $200 million to build four industrial and logistics parks. With its introduction to India, Panattoni, a global pioneer in the construction of industrial and logistics real estate, made its debut in the Asian market. Bengaluru serves as the corporate office for the Indian company Panattoni India Development Pvt Ltd. In an interview with PTI, Sandeep Chanda, Managing Director India, Panattoni, sounded upbeat about the industrial and logistics sector of Indian real estate’s long-term growth as demand for premium spaces from the manufacturing, e-commerce, and third-party logistic sectors develop.

For the initial phase of the India initiative, the business is in talks with landowners to buy around 250 acres of property in Delhi-NCR, Mumbai, Chennai, Hyderabad, Bengaluru, and Pune to construct four projects.

According to him, “We will invest $200 million (about Rs.1,597 crore) for the development of the first four industrial and logistics parks, totaling 6.5-7 lakh leasable square feet.”



Garware Technical Fibres logs 25% yoy sales growth to Rs.304 crore in Q1FY23

Garware Technical Fibres Ltd. (Formerly Garware-Wall Ropes Ltd.), a leading manufacturer of technical textiles for the Indian and global markets, has announced its financial results for the quarter ended Jun 30, 2022.

Consolidated: Q1FY23 Highlights:

Net Sales increased by 25% to Rs.304.5 crore in Q1FY23 as compared to Rs.243.1 crore in Q1 FY22

Profit before tax decreased by 10.2% to Rs.37.1 crore in Q1FY23 as compared to Rs.41.3 crore in the same period last year

Net profit after tax has decreased by 11.7% to Rs.28.2 crore in Q1 FY23 as against Rs.31.9 crore in the corresponding period of FY22.

EPS for Q1 FY23 is at Rs.13.67 this is a de-growth of 11.7% over Q1 FY22

Vayu Garware, CMD,Garware Technical Fibres Ltd. commented, “The Company logged robust top line growth during Q1FY23. Meanwhile, the quarter also saw a further increase in raw material and input costs, which have been passed through with a lag. Raw material costs, along with a continuing lack of availability of containers to deliver some of our high margin export sales has temporarily affected the margins for Q1FY23.

Further, delayed shipments have also caused an increase of inventories as of first quarter end which will be carried forward to Q2 sales. With good movement of export orders as well as a recent softening in the raw material, our company expects to have a positive second quarter in FY23.”



L&T to sell 8 roads, transmission project to Edelweiss fund for Rs.7000 crore

Engineering giant Larsen & Toubro (L&T) is selling its eight operational road assets that the company built and operated to Edelweiss Infrastructure Yield Plus, an infrastructure fund managed by Edelweiss Alternative Asset Advisors, for an enterprise valuation of Rs.7,000 crore, said people aware of the matter. The transaction, yet to be made public, was signed earlier this month and is awaiting regulatory approvals from the National Highways Authority of India (NHAI) and the Securities and Exchange Board of India (Sebi), they added.

The transaction also includes one power transmission asset. The divestment is part of L&T’s asset-light strategy, which has seen the company exit several non-core assets. The L&T Infrastructure Development Projects Ltd (L&T IDPL) concessions have also been part of that list. The Edelweiss infrastructure fund has two operating platforms -- Sekura Roads and Sekura Energy. Both are being used as vehicles for this buyout. The equity value of the road concessions and power transmission project stands at Rs.3,000 crore.

L&T’s road and power transmission assets are housed in 51:49% subsidiary L&T IDPL. Canadian pension fund Canada Pension Plan Investment Board (CPPIB) is the 49% partner in the arm.

In 2018, L&T IDPL had floated an infrastructure investment trust (InvIT) — IndInfravit Trust — and roped in Allianz Capital Partners, Canada Pension Plan Investment Board and OMERS Infrastructure as key unit holders. IndInfravit currently holds a portfolio of 13 operational road concessions with about 5,000 lane km in five states.

Leave a Comment

Email Address
(will not be published)