Chennai Projects Update thread - III

[greatchennai]

India’s first medical tech park in TN

N Ravikumar
CHENNAI, May 19: The first medical technology park in the country will be set up at Irungattukottai, near Chennai by Trivitron, one of India's medical technology companies, in collaboration with Aloka, a well known international company.
The park to be set up an investment of Rs 250 crore would be spread over an area of 23 acres was aimed to develop high quality, cost effective medical technology products suited to the needs of developing countries, Dr GSK Velu, managing director of Trivitron told reporters here.
The park would also enhance the accessibility and affordability of medical instruments to the rural mass, he said. It would first focus on domestic market and then on emerging markets with particular emphasis on South Asia, West Asia and African markets.
At present most of the medical instruments were imported as hospitals were hesitant to use products without a brand name. When all other related fields related to medical technology had grown in the country, it was time the country started manufacturing medical technology products, he said.
The park would be built on par with international manufacturing standards and the company was also exploring the possibility of converting the park into SEZ after acquiring another two acre land in the same location, Mr Velu said.
Trivitron would focus on manufacturing of medical equipment in the areas of critical care, cardiac care, imaging and routine laboratory diagnostics. For the initial phase, it would manufacture products like X-ray machines, ECG machines and stress test systems

http://www.thestatesman.net/page.new...ss=1&id=204701

[senthil2001msk]

Nissan is all set to make its foray in the small car segment in India. The Nissan, Renault, Bajaj tripartite alliance plans to launch the compact car from their Chennai facility. Called the “A” platform car, Nissan calls it a strategic matter as this involves addressing a certain price band, bringing value to customers along with a high level of affordability and delivering mobility to a large number of people. In this interview, Nissan EVP, Carlos Tavares, speaks about this latest compact car venture and his India-centric future plans.

NDTV : Now since you have stepped into the Indian market, you have got your alliance partners and your strategies for that in place. Also the plant in Chennai has been announced where work has already begun, so what’s now the strategy ahead?

Carlos Tavares : Our strategy in India was to step in with Indian partners and up to now we are very consistent. We have taken the time to select the right Indian partners and I believe it was a good investment for the efficiency of our corporation in the future. It is always good to spend a little more time in the beginning to make sure that everybody understands the same thing, everybody shares the same goal and business interests are aligned in the same direction so that the implementation phase is very smooth and efficient. Now our Chennai plant has been handed over for overseas operations. We have finalized the last details with our partners and very soon we will announce where we will built our specific manufacturing facilities to produce our HCVs in India. Thus we are converging very nicely with Renault Bajaj.

NDTV : Tell us the way in which the capacity is going to work in the Chennai plant. How is it going to be divided between Renault and Nissan? And also the capacity that you will use will that be both for export and domestic purposes?

Carlos Tavares : Yes we would like to take that opportunity because in India there is a strong potential in terms of supply. We believe we can perfectly achieve high levels of quality and cost efficiency which opens the door for export opportunities. The Chennai manufacturing site is based on three major legal entities. One of them is a 50-50 JV between Renault and Nissan. From the Nissan perspective we will primarily support the growth in India but we have enough capacity to export and also take the best out of our supply base.
NDTV : Since you and Renault will be in the same plant, though different lines, will there be some kind of product sharing with Renault?

Carlos Tavares : From the go, both companies share the manufacturing best practices and guidelines which gives us the possibility to use any of our cars in the line of any of the partners. So for us the capability to cross manufacturing products is already being implemented since the last four or five years. We decided to create a new platform called “A” platform for entry cars and the reason we did this because we learnt a lot of things regarding cost efficiency from Renault’s Logan success and we decided to implement them in the A platform. This platform will start in India from the Chennai base.

NDTV : What are other products you will be launching from Chennai’s Nissan stable? Can we expect some platform sharing agreement between you and Renault?

Carlos Tavares : Of course we will extend our line up in India to meet the Indian customer needs. We will start with the entry level cars from Chennai base because in terms of the investments we made, volumes are important.
NDTV : What is the time frame? When can we expect to see these things kick in and will there be the same product coming out from both the stables, branded separately, but on the same platform?

Carlos Tavares : Of course we are always in a situation when any platform from the alliance can be used by any partner. So we are open to any kind of platform sharing with Renault as long as it is beneficial for us. We will need somewhere around two to five years to ramp up in India and be significant player in the compact car segment in Indian market. Once we achieve that perhaps we will go a step further for enlargement of our line-up. We have already announced that may be by 2012 we will have a portfolio of at least 8 cars in India.

NDTV : So will that include only CBUs or all vehicles manufactured and rolled out of Chennai?

Carlos Tavares : Most of that will be CBUs but in terms of diversity they will be Indian made.

Mahindra was supposed to be a part of the manufacturing in Chennai but is not a part of it anymore. What went wrong? Also Suzuki, the car would be manufactured in India. Will that be for Indian markets or solely for Europe?

Carlos Tavares : This car is going to be used in Europe. The decision made by M&M was due to change in priorities and the fact that there was the opportunity to have a better manufacturing strategy compatible with the product strategy of M&M. So at one point of time it decided to shift its strategy and we respect that. Though from the Nissan’s perspective we regret this decision because we feel the quality of discussion was good.

NDTV : Bajaj and Renault had already started on discussions for the small car project and you entered later. What made you do so?

Carlos Tavares : Yes Renault started to discuss with Bajaj first but very quickly we were on board too. We considered low cost cars as a strategic matter as this involves addressing a certain price band, bringing value to customers with a high level of affordability and delivering mobility to a large number of people. So discussions were started on a three party basis very quickly and it has reached a certain level of maturity.

NDTV : Tell me about the branding. Will it be under the brand Renault, Bajaj or Nissan?

Carlos Tavares : All options are open. The discussions are still underway.

NDTV : And by when will we be able to see this car actually?

Carlos Tavares : We will make an announcement very soon.

[Subra]

Originally Posted by senthil2001msk

Nissan is all set to make its foray in the small car segment in India. The Nissan, Renault, Bajaj tripartite alliance plans to launch the compact car from their Chennai facility. Called the “A” platform car, Nissan calls it a strategic matter as this involves addressing a certain price band, bringing value to customers along with a high level of affordability and delivering mobility to a large number of people.

I guess the information is not fully correct in this article. The ULC model small car with Bajaj is planned to be manufactured in Bajaj's existing complex in Chakan, Pune. That announcement is already made. The 'A' platform will be above the ULC and that will be from Chennai plant.

[TechCity]

source:Why Velachery scores as a real estate destination Realty check

CHENNAI: Multi-storeyed developments, the hallmark of upcoming residential areas in the city, dot this locality close to the IT Corridor. Velachery, in the space of less than a decade, has become a hub of premium to mid-level residential development due to the influx of IT professionals and rapid improvement of infrastructure.

Builders moved into the area post-2000 in large numbers as they scented the potential of a locality well-connected with Old Mahabalipuram, since renamed as Rajiv Gandhi Salai, and home to several IT companies (IT Corridor).

The Velachery boom is part of a generalised increase in demand for housing in the city, they say.

The location scored initially as it offered builders plenty of land to purchase. Now, land has grown scarce.

“When we began our first project 8 or 9 years ago, we were among the first few builders. Even the roads were not good then. Now, every big retailer wants an outlet here,” said Gayithri Punjabi-Mirza, Director, KG Developers. The company has completed two residential projects, with one more ready for occupation and another scheduled for completion next year in Velachery. It has also completed a commercial project for a leading garment retailer.

Land Marvel has recently started the foundation for its residential project in the area and has received several bookings from IT professionals and non-resident Indians (NRIs). The latter often purchase housing as an investment that could also be used by family later, said M. Arivazhagan, Director, Land Marvel.

Rise in prices


While prices are stable currently, they are likely to rise with the increased development of IT commercial space in the area, he said. Prices of two- and three-bedroom flats listed for sale or resale in several classifieds ads range from Rs.35 lakh to Rs.70 lakh for luxury housing currently.

Good road connectivity and road-widths that permit multi-storeyed development are frequently cited by builders as other advantages of the location.

The rapid development on arterial roads, such as Velachery Bypass, in the area and the rise in the property prices has also resulted in an increase in construction activity in interior areas.

Though many areas, particularly those in western Velachery lack good roads, are prone to flooding during heavy rains and not connected by Metropolitan Transport Corporation buses, people continue to prefer them in view of the appreciation in the property rates.

House owners in Velachery are also in the past few years finding it lucrative to let out their homes on rent and move to other areas closer to the city centre. Residents report that this has become a trend. House-hunters in the location area also find that rentals are geared towards IT professionals.

[TechCity]

source:http://newstodaynet.com/newsindex.php?section=9&id=7677

Venture capitalist Milestone Capital Advisors would invest up to Rs 1,200 crore in Tamilnadu to build green housing units that are affordable too.
Set up by Ved Prakash Arya, the objective of Milestone Capital was to facilitate investment in various areas of the Indian economy. Chennai and other cities like Coimbatore and Madurai in Tamilnadu offered big opportunity for real estate investment in the country.

This was borne out by the fact in a recent survey of property markets by consulting firm Ernst & Young in which Tier-II cities like Madurai and Coimbatore featured among the top 50 destinations in the country. ‘Chennai itself was ranked as third best market ahead of cities like Bangalore and Hyderabad,’ said Prakash Arya, managing director of Milestone Capital Advisors.

He pointed out in the last few years Chennai has become one of the sought after destinations by foreign investors, looking to make substantial presence in India.
When compared to other metros like Delhi, Mumbai and Bangalore, Chennai still offered the lowest cost of living.

Chennai property markets have shown remarkable growth in recent years, with property prices rising two fold in a three-year period. Demand for office space remained strong and it was estimated that the demand for office space would be in the region of 25 million sq ft for the next two to three years ‘The trend in real estate indicates the economic prospects of Chennai remain excellent. We believe this will also fuel a demand of residential space to the tune of 15-20 million sq ft over the next two to three years,’ he said.

He pointed out that Chennai has become a favoured destination of many global players in property development who were coming up with large projects in the city which further boost industrial growth. These include not only investors and developers from the US, Europe and Far East, but even from countries like Israel.

All these underscored the potential of the real estate market in the city. ‘However the explosive growth is also likely to raise property prices further. As more developers concentrate on building luxury apartments to cater to the well off, there is likely to be a scarcity of affordable housing in the city. It is this under-served market that our investments will target,’ he said.

Talking about green housing, Prakash Arya said Chennai was the first city in the country to make rain water harvesting (RWH) compulsory for new residential projects.
‘While eco-friendly housing today has become the buzzword, we believe the real wave of green housing will start from Chennai. That is why we have actively sought out such projects for our investments.’

Milestone has so far raised over Rs 3,000 crore from the domestic and offshore markets.
The company has one of the highest deployment ratio in the sector having so far signed investment deals of over 60 per cent of the fund raised. Milestone was in the process of raising Rs 1,000 crore for its domestic fund called Milestone Domestic Scheme II.
The company provides a wide choice of real estate investment products to suit individual needs of clients. Milestone leveraged its background of its constituents to invest in India.
Many IT buildings have come up which had incorporated green features in their structures like Olympia Tech and CII building at Velacherry

[kvijayasundaram]

http://www.thehindubusinessline.com/...2351190300.htm

The Chennai-based GKS Construction Aids Pvt Ltd (GCAPL) is setting up a project to provide readymade steel for the construction industry.

The company is setting up rebar cut and bend facility in the city’s Ambattur industrial estate to make readymade steel. It will help reduce the lead time for construction projects, especially large projects. The construction industry can now have steel rods cut to size, fabricated according to specification and delivered on time basis for concreting.

The company is in talks with large construction conglomerates like ETA, Allied Housing and DLF to supply readymade steel. GCAPL is into manufacturing steel centering, shuttering and scaffolding equipment.

The Managing Director of GCAPL, Mr A.S. Hariprasad, told Business Line that the Rs 25-crore plant can process about 3,000 tonnes of steel — of 8 mm to 40 mm diameter — a month. With the design and dimensions of the concreting portion from the customers, the CNC machines at GCAPL compute, cut and fabricate steel rods. It will help large construction companies to reduce inventory, optimise space, time and avoid overlap of steel rods eventually optimising volume and weight of concrete and steel scientifically in buildings. The plant will be up and running next month, he said.

[senthil2001msk]

Ennore is the first project to apply the new eligibility criteria after the rules were finalized in January by the Planning Commission

Bangalore: Unlikely partnerships have emerged in the bidding process for a Rs1,300 crore container terminal facility at the Ennore Port in Tamil Nadu, with companies determined to stay in the race till the final lap. As of Tuesday, the last date for submission of initial bids, 22 entities have applied for building the facility.Ennore Port Ltd, owned by the Union government, has said only six entities will be pre-qualified to submit financial bids for the facility with an annual capacity for 1.5 million 20-foot equivalent units, the standard size of a container. This is because of a government policy on bidding criteria for cargo terminals at major ports. Ennore is the first project to apply the new eligibility criteria after the rules were finalized in January by the Planning Commission, which acts as the secretariat to the Prime Minister’s committee on infrastructure.
“Even after qualifying on financial, technical and experience criteria on their own for these projects, many firms face the threat of elimination because of the six-bidder-per-project rule,” said Kshitiz Bhasker, head of business development at Gammon Infrastructure Projects Ltd, which has bid for the project along with Spanish logistics and port operator Dragados SPL and Australia’s biggest construction firm Leighton Holdings Ltd. “As a result, rival firms and like-minded entities are teaming up to strengthen their chances of pre-qualification and be in the reckoning.”
International Container Terminal Services Inc. submitted its bid independently, while DP World bid along with IDFC Projects Ltd; PSA International Pte Ltd with ABG Infralogistics Ltd; Sical Logistics Ltd with Macquarie Group Ltd; NYK Line with Hyundai Merchant Marine Co. Ltd; Mundra Port and SEZ Ltd with Neptune Orient Lines Ltd; and GVK Power and Infrastructure Ltd with Mitsui and Co Ltd.
Similarly, Vedanta Resources Plc. has submitted its bid along with Eurogate GmbH and Co.; IL&FS Ltd with Punj Lloyd Ltd and Pembinaan Redzai Sdn Bhd; Larsen and Toubro Ltd with John Keells Holdings Plc.; Lanco Infratech Ltd with JSW Infrastructure and Logistics Ltd; while Terminal Investment Ltd has joined hands with Samsung Heavy Industries Co. Ltd, Shipping Corp. of India Ltd, Concor Ltd, CWC Ltd and Hind Terminals Pvt. Ltd; Vadinar Oil Terminal Ltd and Essar Shipping have bid together with Ports and Logistics Ltd and Wan Hai Lines Ltd.
Saqr Port Authority submitted its bid with RAK; IMC Ltd with ITD Cementation India Ltd and Srei Infrastructure Finance Ltd; GS Engineering and Construction Co. Ltd with Indiabulls Financial Services Ltd; and Group Maritime TCB with GE Maritime and Eredene Capital Plc.
Applicants will now be ranked on the basis of their experience scores in various fields, after which they will be short-listed for submission of price bids. The bidder willing to share the highest proportion of his annual operating gross revenues with the government port will get the right to run the new terminal.

[satsukhoi]

TIMES NEWS NETWORK

New Delhi: Parliament’s standing committee on transport and tourism has held the Planning Commission responsible for the delay in upgradation of the Kolkata and Chennai airports, and introducing backroom privatisation. The civil aviation ministry was asked to explain why it allowed the delay to continue.
The parliamentary panel, headed by CPM’s Sitaram Yechury, blamed the Planning Commission for rejecting an agreement prepared by Airports Authority of India, according to which modernisation of Delhi airport would have been done in 48 months.
It called officials of the plan panel, aviation ministry and AAI on Thursday to discuss modernisation of Kolkata, Chennai and 25 non-metro airports.
It said the mess in Delhi airport was because the private company had started exploiting the airport commercially without providing facilities for passengers.

Airport development hangs fire


New Delhi: The parliamentary panel, headed by CPM’s Sitaram Yechury, expressed its displeasure over the delay in the modernisation of Chennai and Kolkata airports.
Sources said the Planning Commission faced the brunt of the parliamentary panel’s displeasure. A member said the committee on infrastructure, headed by the Prime Minister, had decided more than two years ago that the Kolkata and Chennai airports would be modernised by the AAI.
Airside modernisation was to be done by the AAI while the cityside was to be modernised through PPP route. The commission brought terminal modernisation to the PPP mode. It has prepared a concession agreement for Kolkata airport, where not only the cityside but even the terminal building, would be leased out to the private sector for 30 years.” TNN

[TechCity]

http://www.hindu.com/rp/2008/03/16/s...1650170400.htm

Big malls are the trend today. Retailers focus on attracting consumers by housing Multiplexes in these malls. Inox at Chennai City Centre has proved that movie watching can be taken to a whole new level. This also adds credit to shopping and other recreation activities. The consumer is promised with the best comfort in the theatre and quality snacks to munch during movie time. Similarly, there is an assortment of foodstuff to choose from. Thanks to a choice of coffee shops and restaurants. In addition to theatres and eat-outs, people can shop extravagantly at large malls which house an array of national and international brands in a range of products from cosmetics to jewellery and coolers to clothing.

In Chennai, an additional retail space of 81 lakh square feet spread over 20 malls has been slated for inauguration in the next three years as against the existing three malls spread across 8 lakh square feet. Retailers are targeting it on the growing cosmopolitan population of our city. International brands such as Body Shop will set foot in Chennai in the near future.

Realty majors such as Prestige Group, Shriram Properties and DLF are in the forefront of mall development in the city. Prestige has drawn up plans for a second Forum mall in Chennai’s artery, Mount Road, while completing the first Rs.350-crore Forum mall at Vadapalani in collaboration with the Vijaya Group. Sources say that it will be spread over 17 lakh square feet, featuring a seven-screen multiplex, over 100 shops, two department stores and a 1,40,000 square feet hypermarket. The mall is expected to operate in the first quarter of 2010.

There are many other projects in the pipeline. ‘Ampa Centre One’ will be giving Chennai a fully international shopping experience. It will house 6.5 lakh sq. ft. of food court, hyper market (by Spencer), 20-room hotel, fine-dining restaurants and the PVR Cinemas multiplex. It is expected that McDonald would open a 5,000 square feet outlet. Allied Housing & Development is planning a seven lakh square feet mall at Sirusseri on the Old Mahabalipuram Road, Chennai’s IT corridor.

The Ozone Group’s 14 lakh square feet ‘Ozone Mall’ is coming up at its integrated township Metro Zone in Anna Nagar. ‘River Side’, a jumbo mall at Karapakkam near Chennai, when completed in the fourth quarter of 2008, would take up 11 lakh square feet of built-up space, including a mammoth parking area, according to industry sources. The mall is being set up at a cost of Rs 500 crore.

Looks like malls are set to rock the retail stage and modernise the shopping experience of every Chennaite!

I need some clarifications

In Chennai, an additional retail space of 81 lakh square feet spread over 20 malls has been slated for inauguration in the next three years as against the existing three malls spread across 8 lakh square feet.

Which is three existing malls?
1.Spenzer
2.City Center
3.???

Which is that 20 malls?whether it is under construction?

[nsantha2]

The 3rd mall is Abirami Mega Mall in Purasawaakam.

Of the upcoming ones, I can only name a few off the top of my head - Chennai Central (on Nungambakkam High Road, by the Income Tax Collectorate), MARG Riverside (OMR), Coromandel (OMR), DLF (no idea where), Prestige Group's (Vadapalani & Mount Road), some of which are already mentioned in the quoted article.

Regarding the AMPA mall (Nelson Manickam Road), the project appears to be in limbo. I didn't see any construction going on when I was in Chennai in December. Reasons for this range from being unstable since it's on the banks of the river to lack of money (to complete construction).

[senthil2001msk]

HYDERABAD: Taj GVK Hotels & Resorts has lined up investments worth over Rs 500 crore in its existing and new properties in south India over the next two-three years.

It is set to open the 200-room Taj Mount Road in Chennai next month while work on a new five-star property in the heart of Hyderabad’s business district Begumpet is slated to open in the end of 2009.

This apart, the company is also setting up 45 service apartments on a 2.5 acre property right next to the Taj Krishna at a cost of Rs 150 crore. The service apartment will also house a spa and club house, Veer Vijay Singh, director operations, Taj GVK, said.
The hotel chain, which currently operates three properties in the city and one in Chandigarh, also proposes to add more rooms to the Taj Deccan, totaling 123 over the next three years, at a cost of Rs 150 crore, he added.

More significantly, the group which posted revenues of Rs 260 crore as of March 31, 2008, a 6% increase over the previous year, has also zeroed in on Bangalore, Kodaikanal, Jaipur and Amritsar to set up hotels over the next few years.

“We are at various stages of finalising properties in these places for our next foray,” Singh said. He, however, added that discussions are still in the initial stages and could take some time.

[senthil2001msk]

Flue-gas project will earn some carbon credits too

MUMBAI: Diversification gambits by real estate companies, which are facing various headwinds currently, continue.

Omaxe Ltd, the New Delhi-based developer, is entering into power generation by forming a joint venture with Isolux, a Spanish firm.

It will set up a 150 mw unit at Ennore near Chennai.

Vipin Agarwal, executive director, Omaxe, told DNA Money, “We are contemplating the project now. It will be a joint venture.” But he did not confirm the name of the partner.

Omaxe had earlier bid for two government power projects but didn’t win them.

The company is expected to hold 51% stake in the joint venture, with Isolux holding the rest.

By following environment-friendly guidelines, Omaxe intends to gain some carbon credits since the feedstock for the plant will be flue gas.

Flue gas is that which exits into the atmosphere through a flue or an exhaust equipment.

http://www.dnaindia.com/report.asp?newsid=1166706

[chennaimetroblogs]

http://www.blonnet.com/iw/2008/05/25...2550841700.htm

The Tamil Nadu Government has to streamline building approval processes in Chennai and the rest of the State to fully realise the investment potential in the real-estate sector. The State has earned an unenviable reputation for delays in sanctioning building plan approvals and clearances — a clearance for a multi-storeyed building could take 18- 24 months, that is almost as long as it takes to construct the building.

Talk to anybody in the construction industry, the complaint is the same: Delay in approvals within the Chennai Metropolitan Development Authority (CMDA) jurisdiction in Chennai Metropolitan Area, and that of the Directorate of Town and Country Planning (DTCP) which is responsible for clearances elsewhere. Just the formalities involved in getting land use conversion — from agriculture to non-agriculture — alone could take nearly a year. Other States such as Karnataka, Andhra Pradesh or Maharashtra have a system for fast-track clearances of projects. Approvals are obtained in about 4-6 months, including land usage conversion.

Need to speed up


The Tamil Nadu Government has acknowledged the need for expediting the clearance procedures and has started taking steps to speed up approvals for IT and industrial buildings.

At a high-level meeting last February, called by the Chief Secretary, Mr L. K. Tripathy, the officials connected with various agencies involved in plan approvals, including the CMDA, DTCP, Chennai Corporation, Municipal Administration, Fire Department, Traffic and industry promotion agencies, had expressed an intention to put in place a system to accord clearances within 60 days for IT and industrial buildings. But the proposal continues to be on paper and is yet to take off.

At the meeting, the Electronics Corporation of Tamil Nadu (Elcot) was identified as the nodal agency that would act as a single window facilitation agency to accept the applications from IT building developers and SEZ developers and coordinate the process of obtaining clearances from various agencies. The Guidance Bureau, the agency under the Tamil Nadu Industrial Development Corporation, created to attract investments into the State, would play a similar role to get approvals for industrial buildings.

The plan was to institutionalise this structure with an appropriate legislation, a draft of which was to have been prepared during the Budget session of the Assembly. The legislation was to provide for a 60-day time limit for building plan approval, 30 days for issue of final building plan clearance by the local bodies and the formation of a single window facilitation authority. However,
nearly three months after the proposal there does not appear to be much progress in this direction.

Shortage of space


The State Government has estimated that over 20 million sq.ft. of built-up space for the IT industry is needed within the SEZs over the next 18 months. If building approvals are not given on time, IT investments could migrate to other States where such space is available.

There is also an acute shortage of office and retail space which is driving up the costs. Industry estimates peg the demand for office space in Chennai at about 7-8 million sq.ft. and for retail space about 2 million sq.ft. this year. Developments have to be speeded up to meet the demand.

[chennaimetroblogs]

http://www.blonnet.com/2008/05/26/st...2651081500.htm

Clarification sought on whether non-engg firms can develop space here

--------------------------------------------------------------------------------

The move has caught developers by surprise because Sidco has allowed IT projects on a massive scale in both the estates.

--------------------------------------------------------------------------------

R. Balaji


Chennai, May 25 Developers planning office and hospitality projects in the industrial estates in Chennai’s suburbs have been hit with the Tamil Nadu Small Industries Development Corporation (Sidco) not approving the projects pending a policy decision from the State Government, according to sources in the know.

Sidco, a State Government enterprise, has sought a clarification from the Government on whether non-engineering companies can be allowed to develop space in the engineering industrial estates in Guindy and Ambattur.

The move has caught developers by surprise because Sidco is having second thoughts after allowing IT projects on a massive scale in both the estates. About 3 million sq ft of IT space has come up in Guindy on the southern outskirts and nearly 6 million sq ft in Ambattur to the west. Industry estimates that there is potential at both the industrial estates to at least double the IT space.

Sidco manages five industrial estates in and around Chennai, and Guindy and Ambattur industrial estates have emerged prime destinations for IT companies and office-space developers. The hospitality industry has also started looking at space here. Till a decade ago these were distant industrial suburbs, which have now been engulfed by the growth of the city and have become prime areas of investment. An acre of land in Guindy now costs over Rs 1 crore and in Ambattur about Rs 75 lakhs.

Waiting for approval


According to developers, at least 7-10 proposals for IT space development and hospitality projects, including an IT building at an advanced stage of completion, are stuck, with Sidco declining to give no-objection certificates. Though the engineering companies that own the land in the industrial estate are free to sell the land or develop it as a joint venture, they need to inform Sidco of the proposal.

On the reasons for Sidco’s move, sources in the know say a section of the manufacturers feel constrained by the presence of IT companies. Skilled and semi-skilled workers with industrial units find IT companies better pay masters
and change jobs. For instance, a welder who is paid about Rs 6,000-7,000 in an industrial unit prefers to take up the job of an office assistant because the pay is a few thousand rupees more and they get to work in air-conditioned comfort.

‘not against IT’


However, according to the representatives of industrial associations, they are not against the IT companies. There are nearly 500 industrial units in Guindy and about 800 in Ambattur. The developers give the units a chance to encash on the growing land value and shift to other locations further from the city like the Sidco’s industrial estates at Thirumudivakkam, Thirumazhisai and Thirumullaivoyal to the west of the city. The IT space has come up in places sold off by engineering units.

[senthil2001msk]

long-awaited: Work on desalination plant at Kattupalli has been delayed owing to reasons such as unseasonal rain. —

CHENNAI: The commissioning of the 100-million litres a day (mld) desalination plant at Kattupalli near suburban Minjur is likely to be delayed by four months. It was scheduled to be commissioned in August this year.

Attributing the delay to unseasonal rain in March, Chennai Metrowater officials said about 70 per cent of the works had been completed. Dredging operation also could not be carried out due to rough sea. Dredging would facilitate laying of a separate pipeline to draw seawater from 10-metre-depth below sea level and discharge waste water, a Metrowater official said.

Though about 15 mld of water was to be supplied on completion of the first phase of the project, envisaged to be completed in May, the delay had pushed the project deadline to December, he said.

Chennai Water Desalination Limited, a special purpose vehicle formed by IVRCL Infrastructures and Projects Limited and its technical partner Befesa Construccion y Tecnologia Ambiental, Spain, started implementing the project on a DBOOT (design, build, own, operate and transfer) basis last year.

The official said work for constructing units such as sand filters and cartridge filters, used to remove minute particles as part of the preliminary treatment, was under way. The process to erect five reverse osmosis units, an important component in desalinating seawater, was also in progress. Each of the unit that had a capacity to treat 20 mld of seawater would be commissioned one after another during December, the official said.

About Rs.118 crore was expected to be spent on purchase of water from the Minjur plant.

http://www.hindu.com/2008/05/26/stor...2657300100.htm

[senthil2001msk]

Joint venture projects will become operational soon

Mumbai, May 27Increasing pressure on vehicle manufacturers in terms of emission control, fuel economy and input cost turns out an opportunity for plastic component makers. The European trend of plastic replacing metal in some of the vehicle parts is catching up in India as international joint ventures to make plastic fuel tanks and clutch systems, such as Yapp-Zoom Automotive Systems and FTE Setco, will become operational in the near future. Also, German-based BASF is setting up its engineering plastic plant in India.

FTE Setco Automotive, an Indo-German joint venture, will come out with plastic hydraulic clutch actuations systems from its Baroda plant in December this year. According to manufacturers, in their product, plastic replaces cast iron and makes the vehicle lighter by 2 kg. Clutch maker Setco’s existing clients — Tata Motors, Ashok Leyland, Eicher Motors and AMW — would source clutch actuation systems from the newly formed joint venture.

Germany-based FTE’s global clients, including Audi, Ford, Volkswagen, Mercedes-Benz, BMW, GM, Hyundai, Volvo, Skoda and Suzuki, would also source actuation systems from the joint venture for their future platforms.

OEMs excited


“The Original Equipment Manufacturers (OEMs) are excited about the new product and see the benefit it has. Not only does it replace the current system in terms of weight but also increases the life of the system and removes inefficiencies. The OEMs understand this benefit and are working with us on various future platforms,” said Mr Udit Sheth, CEO, FTE Setco Automotive.

Yapp-Zoom Automotive System Pvt Ltd, a collaborative venture between Chinese fuel tank makers Yapp and Mumbai-based Zoom Developers, will start production of plastic fuel tanks in September 2009. The 2.5-lakh capacity plant is being set up in Chennai at the Ford’s supplier park. In Europe, US and China, about 70-90 per cent vehicles use plastic fuel tanks, the manufacturers claim.

“Though there is no major cost advantage, design flexibility, emission reduction and safety attract OEMs,” said Mr Anilkumar Menon, Vice-President, Zoom Automobile Ancillaries. Other than Ford, the company is in talks with Mahindra & Mahindra, GM and Volkswagen.

Positive on revenue


Buoyed by the huge interest shown by OEMs, the plastic component makers have high hopes of return. Setco hopes that the Rs 60-crore joint venture will fetch the company revenue of Rs 200 crore in five years while Zoom expects its Rs 56-crore venture to break even in the second year.

“The increased use of plastic for the weight reduction is a global trend. If 10 per cent weight is reduced, 25 kg of CO2 emission will be reduced in the lifetime of a car,” said Herman Althoff, BASF’s Group Vice-President, Asia Pacific. The company, which is setting up its engineering plastic unit in Thane, is associated with Tata Motor’s Nano project.

Another German chemical company Lanxess, with expertise in plastic/metal composite technology with polyamide used for making car roofs and brake pedals, also has greater plans for India.

http://www.thehindubusinessline.com/...2850280300.htm

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MUMBAI, May 28 (Reuters) - Real estate firm SSI Ltd (SSI.BO: Quote, Profile, Research) said on Wednesday a consortium with Unitech (UNTE.BO: Quote, Profile, Research) and Arihant Foundations (ARFL.BO: Quote, Profile, Research) will jointly develop an integrated township at a 70-acre property in Chennai.
The township project is expected to yield built-up space of 7.6 million sq ft for residential, commercial and retail units.

The project is expected to generate revenue of 20 billion rupees over seven years for SSI, it said in a release.

http://in.reuters.com/article/domest...00184420080528

[chennaimetroblogs]

http://www.hindu.com/2008/05/29/stor...2961471200.htm



Renault-Nissan and its vendors will be housed on 890 acres at Oragadam

Trial production will begin by 2009

and commercial production by 2010

CHENNAI: Having allotted 640 acres to the Renault-Nissan joint venture for making 4 lakh passenger cars a year at Oragadam, the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) proposes to allot 250 acres in two places to its suppliers.

In all, Renault-Nissan and its vendors, numbering 100, will be housed on 890 acres in and around Oragadam.

By far, this is the largest land allotment for an automobile major by the government agency.

Hyundai Motors was allotted 526 acres at Sriperumbudur.
50 acres allotted

A five-member committee, headed by SIPCOT chairman and managing director N. Govindan, met on Monday and distributed 50 acres in the suppliers park to seven essential suppliers.

“We have already allotted 640 acres to Renault-Nissan. They would like to have their suppliers close to their manufacturing facility so that their delivery schedules are not affected. In the first phase, the suppliers park will be located on 161 acres at Oragadam, and the second phase will come up on 90 acres at Pillaipakkam,” Mr. Govindan told The Hindu.

Renault-Nissan officials told SIPCOT officials that the trial production would begin by 2009 and commercial production by 2010. The joint venture will invest Rs. 4,000 crore, and the vendors will invest another Rs.1,000 crore.

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Mahindra Lifespace now entering residential space

Arun Nanda, President & ED, M&M informed CNBC-TV18 that Mahindra Lifespace is now going into the residential phase. One will see a much higher level of profitability, he estimated. "The business of growing integrated township does not end there. We are acquiring lands at different locations. I can’t give you the exact name of the locations because we are still in the process of consolidating the land. But we have definitive plans, we have definitive agreements and this process is going on," he said.



Excerpts from CNBC-TV18’s exclusive interview with Arun Nanda:



Q: In your previous meets you had spoken about four of your projects, which are nearing a finalization. Can you reveal something more about the projects on the annual?



Nanda: You have to look at Mahindra Lifespace as its business model. The beauty of Mahindra Lifespace is that the cream of the profits comes from a time when you go from creation of job to creation of social infrastructure. In Chennai we have sold all the industrial land we have promises for about a 1,00,000 jobs directly, which leads to 1,50,000. We are now going into the residential phase. So you will see a much higher level of profitability.



Jaipur will start becoming operational in June 2008 with Deutsche Bank and Infosys operating. It will then move into those social infrastructure phase.



I had also said that the business of growing integrated township does not end there. We are acquiring lands at different locations. I can’t give you the exact name of the locations because we are still in the process of consolidating the land. But we have definitive plans, we have definitive agreements and this process is going on.



Q: We understand that you had four projects each over 100 acres under development?



A: They are larger than 100 acres, there are two in Tamil Nadu and two in Maharashtra is all I can tell you at this stage. But you also have to remember that we just don’t do integrated townships; we have 2.7 million square feet under construction and 4.7 million square feet, where we have got the approvals and we are getting into construction this year, except for Nasik which might spill into the next year, which is small at about a few hundred thousand square feet.



Q: Let me concentrate on Chennai, the market buzz is that between the first sales that you did, the anchor sales and the last sales that you have done, the price has jumped up substantially, the numbers go as high as 25 times, am I right?



A: I would split it into two parts; I would say that in the industrial side, they probably go upward of 10-times. But if you get into deals which we have done for hospital or we are doing for the valuations for some of the other commercial spaces, then the number of 25 looks right. But I would like to make one point clear to the investors that in this business, when you do a large project, the anchor doesn’t pay you the top dollar. In fact we have to do in case of Chennai, we started the anchor at below cost, but it is still a significant increase. Even in Jaipur, from where we started, we are already at three-times where we started. But just to complete the story, in the industrial side, you sell in acres but when you become residential, you actually move into square feet. So the realization goes beyond 25-times.



Q: Could you give us some idea on the valuations of the Sullivan County project, because there were some mind boggling valuations that were doing the rounds in market circles?



A: Sullivan County was a small test-marketing project of 25 acres which was sold. If you are talking of the extended residential, let me tell you what we have - about 225 acres of residential and 50 acres of commercial in hand and we are not selling commercial now because we believe if after the residential we sell commercial, we will get better rates.



225 acres translates to around 15 million square feet; this land was acquired by us sometime ago. So the land cost is fairly low and it is not even in three digits per square feet. Selling prices in that region are about Rs 3,000 and our construction costs would not have any taxes because it is in the SEZ. So we should save about Rs 200. I think there is a huge valuation sitting there but in addition to that, we have acquired or are in the process of closing documentation for another 300 acres - so that part of the business is looking good and I don’t think the market correctly factored the valuation of that even today in spite of the stock having gone up by 50%.



Q: Would you look for a private equity player or someone to get correct valuations, something on the annual?



A: It is not ruled out but there is nothing on the card. We did do a strategic 50-acre development with the Ayala Group because Ayala's built Makati City, which is the financial capital of Philippines. We are looking for somebody who would bring in strategy more on the project management because while everybody is talking of large developments in India, people haven’t done that level of development. So private equity is not ruled out but as late you go to private equity, the better valuation you get. But there is nothing on the cards at this moment of time.


http://indiaearnings.moneycontrol.co...?autono=340104

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Ford has started its operations at its engine assembly plant in India. It has set up its engine plant near Chennai with an initial capacity of 60,000 units annually. It shall be making 1.4 litre Diesel Duratorq engines for Fusion and Fiesta models. It shall be manufacturing 50,000 diesel engines and 10,000 petrol engines. It shall subsequently expand its capacity to 250,000 engines annually. Initial production of engines shall first cater to the domestic demands and then the surplus would be subsequently exported to other countries.

"This facility will help position Ford India as a strategic manufacturing hub for low displacement powertrain engines within our Asia Pacific and Africa region," said Michael Boneham, president and managing director of Ford India.
Once Ford achieves 50 percent local content in its models, Ford shall gain a competitive edge in the market. It shall not only be able to cater to the market demands quickly, it shall have smoother efficiency in its operations as well. It shall be investing $200 million in the next two years to increase its capacity to 200,000 units annually.


http://www.cartradeindia.com/news/en...ia-110168.html