21 November 2018

Table of Contents for Ticker Tape

Ticker Tape- Construction

Puravankara to invest Rs 35 bn on 15 upcoming projects this fiscal


Bengaluru-headquartered Puravankara Ltd is planning to launch 15 new projects in the current financial year, at an investment of around Rs 35 billion. Seven of these projects will come up in its affordable housing segment 'Provident' including one in Sri Lanka. The realty firm, which saw a lot of traction in its affordable housing segment last fiscal, also said that it will enter low-cost housing segment as and when the availability of housing loan becomes easier for home buyers. The new launches will come up in Indian cities like Bengaluru, Mumbai, Pune, Goa, Cochin, Chennai, Mumbai along with one planned near Colombo in Sri Lanka. In FY18, while total sales volume that includes company's both affordable and premium segments, grew by 51 per cent to 3.25 million square feet, sales from affordable housing segment- Provident - grew by 173 per cent during this period. Apart from its focus on the residential segment, the company is also slowly diversifying into the commercial real estate and is eyeing a portfolio of around 6 million sq. ft. in next five years. Currently, the commercial segment constitutes less than 5 per cent of its total developed area. Puravankara which has a debt level of `22.47 billion by the end of March, 2018 said the company may not have to raise debt as construction finance raised from banks and sales revenue would be able to cover project-related costs.




Allcargo in talks to raise Rs 1,000 cr to fund logistics parks foray


Mumbai-based Allcargo Logistics Ltd is looking to raise as much as Rs 1,000 crore to fund its diversification into multi-modal logistics parks and warehouses. The company, part of the Avvashya Group promoted by Shashi Kiran Shetty, is looking to raise funds from strategic or financial investors, including private equity investors. The company plans to set up India’s largest multi-modal logistics park at Jhajjar in Haryana. It is also exploring the option of bringing in strategic joint venture partners to fund its logistics parks business, said bankers asking not to be named. Allcargo has chalked out its growth strategy focussing on multi-modal logistics parks comprising large format warehouses, rail-linked inland container depots and private freight terminals to become a $2-billion company by 2020. It owns strategically located land parcels in Jhajjar, Bengaluru, Hyderabad, Nagpur and Nhava Sheva to support these ventures. The firm currently runs multi-modal transport operations and container freight stations and provides project and engineering solutions.




PE investments in Indian real estate hit Rs 59,100 cr in 2017


A report by Knight Frank says that PE investments in real estate rose from Rs 17,200 crore in 2014 to Rs 59,100 crore, a growth of a whopping 36 per cent compounded. Much of the PE investments found their way into commercial real estate. Since 2011, a total of Rs 57,300 crore has been invested into the space. According to the Realty Asset Monetisation 2018 – An Overview by Knight Frank, Mumbai captured 40 per cent of private equity investments into office assets in India while NCR saw Rs 11,350 crore being invested. Bengaluru attracted private equity investments into office assets to the tune of Rs 7,850 crore. Retail and warehousing have also seen a strong performance during the last four years. The warehousing sector has seen an investment of `28,136 crore since 2014, says the report, while `10,362 crore has been invested into retail assets since 2011.




Lodha Developers gets Sebi's approval to launch Rs 55 billion IPO


Realty major Lodha Developers has received markets regulator Sebi's go-ahead to launch Rs 55 billion initial public offering. The company, which had filed preliminary papers with Sebi in April seeking approval to float an initial share-sale, got the regulator's "observations" in the mid of July, as per the latest update with the markets watchdog. The approval paves way for the second biggest IPO in the real estate sector after DLF which had raised close to Rs 92 billion in 2007 though it initial share-sale offer. Apart from Lodha Developers, the regulator has given clearance to Shakun Polymers and Dinesh Engineers to float initial share-sales. Observations from the Securities and Exchange Board of India (Sebi) are necessary for any company to launch public issues like rights issue, initial public offer (IPO) and follow-on public offer (FPO). As per the draft papers filed with Sebi, Lodha Developers plans to issue fresh shares worth Rs 37.50 billion besides an offer for sale of 1.8 crore shares by the promoters.




Surbana Jurong bags project mgmt, design services for India Pimpri Chinchwad Smart City


SURBANA Jurong has been awarded project management and design services for India's Pimpri Chinchwad Smart City in partnership with professional services firm KPMG, the urban consulting firm announced recently. Surbana Jurong will take the lead in the Area Based Development part of the project, comprising city improvement (retrofitting) and city renewal (redevelopment), and helping to identify suitable innovations and smart solutions for the city. It will design, conceptualise and manage the implementation and deployment of the various solutions for the city, which focuses on liveability, urban design, transportation, water supply, solar, sanitation, healthcare, education, security and surveillance. Pimpri Chinchwad, in the Indian state of Maharashtra, is one of the cities falling under India’s nation-wide Smart Cities Mission programme, which aims for comprehensive and systematic transformation of cities in India through planned urbanisation. KPMG will lead the Pan City Development part of the project, applying smart solutions to the existing city-wide infrastructure.




Smart cities let transport take lead, put safety & waste disposal in back seat


While urban transport is the topmost investment priority for cities selected under the government's Smart City Mission, safety and solid waste management issues are at the bottom of the list. In a presentation made to the parliamentary standing committee on urban development, the housing and urban affairs ministry has stated that 99 cities that are part of the Mission are expected to make investments of Rs 2 lakh crore, of which the highest share of over Rs 33,000 crore (16.6 per cent) is proposed for urban transport. Interestingly, while most cities in India are faced with a solid waste management crisis, only 2.4 per cent (Rs 4,896 crore) of the total investment is directed towards this sector. Social sectors and storm water drainage are also a low priority on the investment agenda with just 2.5 per cent (`5,100 each) for projects in these areas. After urban transport, area based development is the second most important investment priority under the programme, with proposed investment of Rs 30,600 crore. Under area based development, cities pick one area and develop it fully so that the model can be replicated in other parts of the city. According to the ministry, 3,183 projects worth Rs 1.45 lakh crore are in various stages of implementation. Projects worth Rs 4,960 crore have been completed. Work has started on other projects worth Rs 23,000 crore while the tendering system is in process for the rest.




Delhi's Connaught Place among world's top 10 most expensive office locations


With an annual rent of $153 (Rs10,500) per sq ft, New Delhi's Connaught Place has become the ninth most expensive office location in the world. However, India's financial capital Mumbai's Bandra Kurla Complex slipped to 26th position from 16th rank and Nariman Point dropped to 37th position from 30th position last year. According to annual Global Prime Office Occupancy Costs survey, Hong Kong (Central) is at the first position with an annual rent of $306.57 per sq ft, followed by London (West End), Beijing (Finance Street), Hong Kong (Kowloon) and Beijing (CBD). New York (Midtown- Manhattan) ranked sixth with an annual rent of $183.78 per sq ft, while New York (Midtown-South Manhattan) is at 7th position commanding rent of $171.56 per sq ft. Indian real estate market is passing through a recovery mode after adjusting to various reforms like demonetisation, GST and RERA. The sales volume are witnessing growth in cities such Delhi NCR, Pune, Mumbai and Bengaluru on the back of price corrections.




Migsun to invest Rs 500 cr on housing project at Greater Noida


Realty firm Migsun plans to invest about Rs 500 crore to develop an affordable housing project in Greater Noida. The company will develop 1250 flats in this 5-acre project. The apartments are priced in a range of Rs16-26 lakh. The investment would be funded through internal accruals and advances from customers. Affordable housing has gained momentum on the back of infrastructure status and interest subsidy offered by the government. The GST rate has also been lowered at 8 per cent for affordable housing projects, leading to higher demand and supply in this segment. In April this year, Migsun had announced a low cost housing project at Ghaziabad with an investment of about Rs 1,000 crore. The company would develop 3,000 housing units under the central government's scheme Affordable Housing in Partnership (AHP) Pradhan Mantri Awas Yojana. At present, it is developing four housing projects, comprising about 4,000 flats, at Noida, Greater Noida and Ghaziabad in Uttar Pradesh, with an investment of about Rs 1,800 cr. These four ongoing projects are expected to be completed in this financial year, Miglani had said.





Oakwood, Kapil Group sign JV for 2nd property


Oakwood Worldwide, wholly owned by Mapletree Investments, recently signed a partnership with Kapil Group (BVM Energy and Residences Pvt. Ltd) to open its second Oakwood-branded property in Hyderabad in 2021. Located near the Rajiv Gandhi International Airport (Shamshabad), Oakwood Hotel & Apartments Kapil Hyderabad offers 175 units of hotel rooms and serviced apartments with facilities such as a banquets, business center, gym and restaurant. Services include 24-hour concierge and reception services, business services and high-speed internet connectivity. While Kapil Group is a conglomerate of over 35 companies, Oakwood Worldwide is a leading provider of furnished and serviced apartment solutions through its brands, Oakwood, ExecuStay and Insurance Housing Solutions. Oakwood has a presence in all 50 states in the US and more than 95 countries.




Karnataka to develop industrial hub in Tumakuru district


The Karnataka government has marked out Vasanthanarasapura in Tumakuru district for being developed into a major industrial hub as part of the Chennai-Bengaluru industrial corridor project, which will see an investment of Rs 50,000 crore. The Karnataka government will allot land free of cost to the special purpose vehicle (SPV) that will be set up to create, develop, and manage the Tumakuru node. As per the regulations, the State government will contribute 50 per cent of the investment in the form of land, and the Central government will match the contribution in the form of a grant to develop infrastructure, up to a maximum of Rs 3,000 crore. The Karnataka government  and the Centre have signed the shareholders’ agreement, the State support agreement and for the SPV to develop the industrial hub. The government has identified 9,629 acres in Vasanthanarasapura for the development of the node. Adequate compensation has already been paid to the owners of up to 1,722 acres and the land has been acquired. A preliminary notification has been issued for another 7,900 acres. The Chennai-Bengaluru Industrial Corridor (CBIC) is one of the five special economic and industrial corridors envisioned by the Centre in a bid to boost manufacturing and industrial growth, and to create jobs. It will link Bengaluru and Chennai, measuring a total distance of 560 km.




Raheja District II-The First Industrial Park to Offer Mobile App


Raheja Universal Pvt. Ltd., one of Mumbai’s leading real estate conglomerates, has implemented RUPL Mobile App for its clients at the Raheja District II located at Juinagar, Navi Mumbai and Raheja Exotica Sorento at Madh Island. This app makes Raheja District II the first industrial park for embracing technology and offering the ease of doing business for its customers. The app bridges the gap between the property developers and occupants by fulfilling the ever evolving customer expectations. It also enhances project offering with an increase in customer engagement and cost reduction. Going forward, this app will be integrated into all the projects of Raheja Universal. The RUPL App offers features viz a mobile based management solution, 3 layers escalation matrix, receiving and paying maintenance bills using the mobile app, reduction in operating costs, prevention of unauthorised access of important communication, digital log of every communication, managing the inventory and booking orders efficiently, and saving time with automation amongst many others. The Raheja Universal app is a smart home device acting as a community management tool that helps to manage day-to-day living such as receiving communication, booking facilities, making payments, visitor management, and home automation.



Aliaxis expands its commitment to India


Aliaxis SA, a global leader in the manufacturing and distribution of advanced plastic piping systems, has agreed to acquire the remaining shareholding of Ashirvad Pipes Pvt Ltd (“Ashirvad”) from the Poddar family, the founders of the company. This transaction concludes the successful JV between Aliaxis and the Poddar family, created in 2013. Aliaxis is looking forward to building on the solid foundation created by both partners and to further pursuing the growth opportunities available in the plumbing and agriculture markets in India. India is a high priority market for Aliaxis and the transaction underscores its long-term commitment to the country. As a part of the transaction, Aliaxis has acquired a 37 per cent stake in addition to its 60 per cent stake in Ashirvad and has agreed to acquire the remaining 3 per cent stake from the Poddar family over a three-year period. Both parties have agreed to not disclose the financial details of the transaction. Ashirvad has appointed Deepak Mehrotra and Sunil Banthiya as Managing Director and Chief Operating Officer respectively, with effect from July 5, 2018.




ITC sparkles in Cyberabad with Rs 775 crore Kohenur


Multi-business conglomerate ITC made a grand entry in Hyderabad’s hospitality market with the opening of its 271-room luxury hotel in Cyberabad, Telangana. With a host of new additions planned over the coming years, ITC will add approximately 2,500 rooms between 24 hotels taking the total inventory to 12,000 across 130 hotels in five years. New hotels will be a combination of owned-operated and management contracts in the 40:60 ratio. Between its four brands viz. ITC Hotels, Welcome Hotels, Fortune and Welcome Heritage, the Indian cigarettes-to-food giant currently operates 107 properties with a combined capacity of 9,500 rooms. ITC's new hotel with 271 rooms, suites and serviced apartments is strategically located in the heart of Hyderabad’s new business district in Cyberabad, opposite the Inorbit Mall with offices of various firms like L&T Infotech, Novartis, Teradata, Amazon, Facebook, NCR, EA Games etc. in its immediate vicinity. While ITC management did not share details about pricing and its competition, a location study on Google Maps shows only one branded player i.e. Marriott-Starwood’s The Westin Hyderabad Mindspace located 3.5 kilometres away.




Realtors eyeing slice of warehousing pie


Leading players of residential real estate are now entering the $260-billion Indian logistics sector as companies are looking for large-sized warehousing spaces to consolidate and expand after the introduction of the Goods and Service Tax (GST). Bengaluru-based Prestige Group and Mumbai’s Hiranandani Group and Lodha Group, all well-known for their luxury housing projects, are creating robust warehousing presence to meet the growing demand from FMCG, e-commerce and manufacturing sectors. Reports suggest that Hiranandani’s industrial park at Talegaon in Pune, spread over 250 acres, and a 100-acre project at Oragadam in Chennai will be functional by the December quarter. The third project is coming up at Nashik on 77 acres. Prestige Group is looking to replicate its success in commercial space to warehousing as well. In May, it launched its first logistics centre in Malur, Kolar district, about 50 km from Bengaluru. And Lodha’s 150-acre park in Palava in suburban Mumbai stands to gain from proximity to both the Jawaharlal Nehru Port (JNPT) and the upcoming Navi Mumbai airport.




Ahmedabad-based realty group form jt venture


Ahmedabad based two large real estate groups recently formed a joint venture to create a construction giant to take on large-scale residential and commercial projects. Shivalik Group and Hetu Construction Pvt Ltd announced a joint venture under the name of 'S & H Construction' to jointly address the growing needs of the real estate sector. The two realty groups have till date successfully executed combined 300+ projects and have an experience of constructing over 10 million sq ft space over the past few decades. According to market estimates, by 2025 India will add about 11.5 million new homes each year. This will make India a $1-trillion construction market for each year. It is estimated that by 2025, India, USA, and China will contribute 60 per cent of global growth in the construction sector.




NBCC and CPWD to rework housing layout plans for South Delhi redevelopment projects


 As many as 10 lakh trees of 8-12 feet height will be planted in the next three months. Overall, NBCC will plant 25,000 trees and the CPWD would plant 50,000. DDA will plant 10 lakh and DMRC will plant 20,000. Following public outrage, the National Buildings Construction Corporation (NBCC) and CPWD have decided to re-visit their plans for the redevelopment of government colonies in South Delhi to ensure that minimum trees are felled. The consensus following a meeting held on June 28, was that not a single tree will be cut for the projects and citizen groups will be invited to suggest the location to transplant the trees. NBCC has floated an expression of interest for the relocation of trees, transplantation equipment and for engaging services of trained professionals for the purpose.




Blackstone, Indiabulls plan commercial real estate platform


Blackstone and Indiabulls plan to add six office spaces on the new commercial real estate platform, three of which will be jointly acquired and the rest would be projects already developed by Indiabulls Real Estate. The plan is to add six office assets on the platform within the next three to six months, of which three will be jointly acquired and the remaining would comprise projects already being developed by IBREL. IBREL will not pursue its earlier plan to carve out a separate entity for its commercial office business, given its new partnership with Blackstone. In 2017, the company’s board had decided to create a new vertical to house the two businesses, where the residential business would continue to remain with IBREL and the new entity—Indiabulls Commercial Assets Ltd (IBCAL)—would hold existing leasing and commercial assets, as well as future projects. Indiabulls Infraestate Ltd, a subsidiary of IBREL, had signed a term-sheet with Oricon Enterprises Ltd to jointly develop a commercial building on a land parcel in Worli, Mumbai. Once executed, Indiabulls would get ownership rights to about 255,000 sq. ft of leasable area.



JSW Steel to invest Rs 7,500 crore to expand Vijayanagar facility


Steel major JSW has recently announced plans to invest Rs 7,500 crore until March 2020 to increase the production capacity at its Vijayanagar facility in Karnataka to 13 million tonnes per annum (mtpa). The plant, which currently has a 12mtpa capacity, is the largest single-location steel manufacturing unit in India, the company claimed in a release. It will also modify and enhance capacity of its steel melting shop, the flat and long products mills, along with allied facilities to utilise this additional hot metal. . The company also plans to set-up a 1.5mtpa coke oven plant in Karnataka to bridge the current and expected gaps in coke availability, which is likely to be commissioned by March 2020, according to the release. Meanwhile, the company also announced that it has commenced operations at Tunga and Nandi iron ore mines in Karnataka, for which it has already received statutory clearances. The cumulative capacity of these two iron ore mines is 0.71mtpa.




Phoenix Mills Arm Acquires Under-Construction Retail Development in Indore for Rs 2.34 Bn


The Ruia family-owned Phoenix Mills Ltd (PML) has announced that the company, through its 100 per cent subsidiary Insight Hotels & Leisure Pvt Ltd, has acquired an under-construction retail asset in Indore. PML has acquired the asset for Rs 2.34 billion in an auction conducted by an Asset Reconstruction Company.This brownfield expansion will add approx. 1.1 million sq. ft. to PML’s retail asset portfolio. The site offers a further development potential of approx. 800,000 sq. ft. Besides being the financial capital of Madhya Pradesh, Indore is the largest economy in central India, as per the company claims.




UltraTech Cement plans to raise Rs 9,000 crore


According to reports, cement manufacturer UltraTech Cement is planning to raise Rs 9,000 crore via an issue of redeemable, non-convertible debentures on a private placement basis. In June, UltraTech announced the acquisition of the cement business of Century Textiles and Industries and it was to be financed through a share swap, besides taking on Century’s debt of Rs 3,000 crore. UltraTech has also aggressively bid for Binani Cement under the bankruptcy code that seeks resolution of distressed assets in the country. The cement maker also recently commissioned its greenfield clinker plant of 3.5 MT in Manawar in Madhya Pradesh with a grinding facility and waste heat recovery system at the site still to be constructed before September 2018.




Bosch plans to invest Rs 1,700 cr in India by 2021


The Bosch Group last month announced its plans to invest Rs 1,700 crore in the next three years in India, that continues to offer promising opportunities for its business and broad product range. Reports suggest that a major share of this amount would be used to expand Bosch's smart campus in Adugodi here and to modernise manufacturing facilities in the country. The Bosch Group said it sees strong signs of recovery in the Indian market and forecasts a positive development over the mid-term. In 2017, the Bosch Group posted strong double-digit growth as sales went up 15.4 per cent to 2.2 billion Eurosin the Indian market. Citing the latest global data, which said India has overtaken Germany to become the fourth largest automotive market in the world, he said automobile sales in Asia's third largest economy, including passenger and commercial vehicles, grew by 9.5 per cent last year.




Warburg-Embassy JV buys 110 acre in Haryana to build industrial park


Private equity major Warburg Pincus and Embassy Group’s joint venture company Embassy Industrial Parks has acquired a 110-acre land parcel in Haryana’s Farrukhnagar town near Gurgaon. The entity is looking to invest Rs 600 crore, including the land cost, to develop a 3-million sq-ft industrial park on this plot. The industrial and warehousing solutions company has already leased out 1 million sq ft of this proposed development. In 2015, Warburg Pincus and Embassy Group had together infused $250 million equity capital to build industrial and warehousing spaces across India. By the end of this year, the company will have 1million sq ft fully operational and 3 million sq ft of partly ready, under-construction, but leased space.




Cement demand to grow by 7 per cent in 2018, excess capacity a concern: ACC


Cement demand in India is expected to grow by 7 per cent this year but intense competition and "not enough" consumption will lead to excess capacity, cement maker ACCNSE -1.16 per cent said in its annual report. The demand will grow in 2018, helped by the Centre's push on big infrastructure projects and continued focus on rural development and affordable housing schemes. "Consequently, the demand for cement in 2018 is expected to increase from 6 per cent to 7 per cent," ACC said in its annual report for 2017. The cement industry had a growth of 6 per cent in 2017 as against 5.1 per cent in the previous year, it added. Around 66 per cent of its demand came from the housing sector, followed by infra with 18 per cent and 16 per cent by commercial sectors. The total installed capacity of the cement industry in India is around 465 million tonnes (MT), ACC said. However, the industry is battling with under-utilisation of the installed capacity as it is currently producing 305 MT for both domestic demand and export requirement. While cement plants in northern, central and eastern regions of the country produced at levels above 85 to 90 per cent of capacity, excess capacity in the southern region has inhibited the industry's average capacity utilisation.




NBCC to invest Rs 500 crore to acquire 2 loss-making PSUs


State-owned construction firm NBCC plans to invest around Rs 500 crore to acquire majority stake in two loss-making public sector firms, as per reports. It is also reported that the company will invest around Rs 500 crore from internal accruals to acquire the other two loss-making firms.

Last year the company acquired 51 per cent stake in Hindustan Steel Works Construction (HSCL), also a public sector company under the steel ministry, with an investment of `35.70 crore. Currently, the company's order book stands at around Rs 80,000 crore and it hopes to add around `20,000 crore. NBCC is also considering developing real estate projects on lands of sick public sector undertaking (PSU) or loss making PSUs or that available with the government, mainly on self revenue generation modeI


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