Marigold Capital Set to Acquire The Leela in Chennai

Mumbai-based private equity fund Marigold Capital and Investments is set to acquire the Leela Group’s 326-room hotel in Chennai, India, for approximately $109 million. The fund specializes in buying debt-ridden hotels and commercial real estate properties and turning them around.

Mumbai-based JM Financial, an investment bank that is the advisor to the sale said, “The deal with Marigold is in the documentation stage where the final agreement will be drafted.”
The Economic Times reports that last year, the JM Asset Reconstruction Company sold the Leela Group’s hotel in Goa to a Malaysian conglomerate MetTube SD BHD for about $113 million.
The Leela Chennai

June 12, 2017   No Comments

Dell EMC to Invest $1 Billion in India

IT infrastructure provider Dell EMC, based in Massachusetts, plans to invest $1 billion to set up its product development center in Pune, a city 75 miles east of Mumbai, as well as expand its manufacturing base in India.

Dell EMC Product

The company already has a factory near Chennai, in south India, from where it shipped its 10 millionth product last month, Dell EMC Director for Mega Projects, Ravinder Pal Singh said. He added that the sales turnover of the company will be over $3 billion over the next couple of years, reports India Infoline News Service.

 

June 5, 2017   No Comments

“Co-Working” Catches on in India

Co-working, a concept where individuals or startups share a common workplace environment, is slowly catching on across prime property markets in India. Across the country, co-working space of 0.73 million sq ft was tenanted last year.

“Though still nascent, this category could prove to be a disrupter as bigger co-working players such as WeWork enter India and more such facilities pop up across cities,” said Ramesh Nair, CEO of JLL India.

With 9,600 seats available at co-working facilities across the country, Mumbai records the highest absorption nationally, followed by Delhi-NCR, Kolkata, Bangalore, Chennai, Pune and Hyderabad, reports the Economic Times.

Inside an Office

Sumit Lakhani, CMO at Awfis Space Solutions said, “Companies can make savings of up to 20-30% by working in a co-working space.” The firm’s clientele includes small and medium-sized enterprises, start-ups, freelance professionals, consultants, and corporations.

May 30, 2017   No Comments

Warehousing Sector Surges in India

In anticipation of the national Goods and Services Tax roll-out in July, warehousing facilities will increase by 18 percent to 132.5 million sq ft, and this sector is likely to see investments of about $700 million, according to industry experts

Delhi-NCR had the maximum warehousing stock in 2016 at 29.3 million sq ft, followed by the Mumbai Metropolitan Region, Bangalore, Pune, Chennai  Kolkata, Hyderabad, and Ahmedabad.

A warehouse

Ramesh Nair, CEO, JLL India, told BusinessLine that in 2016, the Grade A and B warehousing stock touched 111.9 million sq ft from 96.8 million sq ft in 2015, and that the GST roll out will “up-grade warehousing infrastructure.”

According to Nair, Pune and Chennai lead the way in Grade A and B warehouse rentals due to their proximity to manufacturing hubs, and local market dynamics.

 

May 30, 2017   No Comments

Daimler, Volvo Export Trucks, Buses from India

Both Daimler and Volvo are making India their export hub for large trucks and luxury buses such as the Mercedes-Benz, Mitsubishi Fuso, Freightliner and UD Trucks.

Daimler India Commercial Vehicles (DICV), the Indian subsidiary, has already begun exporting its Mercedes-Benz trucks and buses, made at its Chennai facility, to Southeast Asian markets.
It also exports the India-made Mitsubishi Fuso range of trucks to 28 countries. In mid-2017, it will begin sales of the Freightliner trucks to Mexico. “DICV has been awarded significant responsibilities within Daimlers’ global truck and bus businesses,” Erich Nesselhauf, managing director of DICV, told the Economic Times.

In 2016, DICV’s truck exports more than doubled to 4,300 units, taking the number of cumulative shipments from India to 7,500 units. Daimler exports to the Middle East, Africa, Latin America, and Southeast Asia. This year, DICV will add 10 new truck-export markets.

Volvo AB’s UD Trucks, which are manufactured at its Indian joint-venture plant in the state of Madhya Pradesh, will be marketed to Indonesia. India already manufactures the Euro VI engines for Volvo’s home base in Europe. Volvo Buses will use its base in Bangalore to export vehicles to western Europe.

Vinod Aggarwal, managing director of Volvo’s joint venture in India VE Commercial Vehicles (VECV), said, “The export of medium-duty engines to Europe ensures better utilization of our plant capacity. VECV is focusing on building its exports, which increased 20% in FY17. We expect it to sustain momentum in the coming year.”

A Truck

May 4, 2017   No Comments