The Hindu Business Line : Companies cashing in on the realty boom

Making hay
Carborundum Universal is likely to sell the land at Pallikaranai, Chennai
It has set up a new facility at Sriperumbudur for coated abrasives
DCM Hyundai plans to sell over 15 acres surplus land at Sriperumbudur

Chennai June 26 Taking advantage of the buoyancy in real estate prices, companies are opting for cashing in on the land value. The latest among them are DCM Hyundai Ltd of the DCM Shriram Group and Carborundum Universal of the Murugappa Group.

According to sources in the know, Carborundum Universal, which has decided to shut down its coated abrasives plant at Pallikaranai, a southern suburb of Chennai, is likely to sell the land. It is likely to go for a closed auction after the statutory approvals. The company has set up a new facility at Sriperumbudur for coated abrasives.

At Pallikaranai, Carborundum Universal has six acres, which, it expects, would fetch over Rs 30 crore. The land is located on the road linking Velachery to Tambaram and has seen large residential development.

Real estate sector sources say that Velachery is among the fast developing residential locations where apartments sell upwards of Rs 4,000 a sq ft.

A few months ago, Rane Group also announced the sale of over 63,000 sq ft of land at Velachery.

DCM Hyundai Ltd of the DCM Shriram Group plans to sell over 15 acres surplus land at Sriperumbudur.

According to Mr Umesh Sharma, Chief of Operations, DCM Hyundai, the company plans to sell the surplus land available with it to take advantage of the buoyancy in land prices.

The company plans to sell about 16 acres out of the 40-acre manufacturing facility at Polivakkam, Sriperumbudur, near Chennai.

DCM Hyundai is among the largest manufacturers of generator set containers, canopies, storage containers, office cabins and freight containers. The sale proceeds are to be used for expanding the existing business operations, he said.

According to real estate sector sources, land prices at Sriperumbudur range around Rs 1.5 crore an acre. Sriperumbudur is one of the sought-after locations near Chennai for industrial and residential purposes. It is home to some of the global leaders in automobile, electronics and telecom industries. Some of the leading property developers have also announced township projects at Sriperumbudur.

DCM Hyundai is a part of the DCM Shriram Group, which has interests in sugar, alcohol, chemicals and rayon. It is a joint venture between the group and the Hyundai group of Korea.

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