The Hindu Business Line : Akruti Nirman plans to enter SEZ, hospitality

Kolkata, Aug. 26 Akruti Nirman Ltd plans to invest $1 billion (Rs 4,000 crore) to develop residential, commercial, retail and hospitality projects across India over the next four years.

“We plan to invest nearly $1 billion over the next four years.

Currently commercial office space accounts for almost 75 per cent of our total projects. We plan to venture into new segments including SEZs (special economic zones) and hospitality in next three to four years,” Mr Hemant Shah, Chairman, Akruti Nirman Ltd, told Business Line.

Funding investment

The company will consider “various options” including internal accruals, debt financing and private equity to fund its proposed investment. Mr Shah also did not rule out a follow-on public offer to raise capital. “We are considering all sort of options and will take a decision as and when required,” he said.

Akruti Nirman, which currently has a land bank of close to 40 million square feet, will diversify into hospitality business in the next couple of years. “We are going into hotel business in a minor way due to religious constraints. We plan to develop a super luxury hotel in Mumbai and another star hotel in Pune. The hotels are expected to be operational in next two years,” Mr Shah said.

The company plans to enter into a management contract agreement with reputed hotel chains and is currently in talks with both national and international hotel operators. “We are having a discussion with a group of hotels but nothing has been signed so far. We will take another couple of months to finalise the partner,” he added.

Beside hotels, the company will develop a Bio-IT park on 708 acres of land in Vadodara. The company has initiated discussions with different companies to set up their facilities at the park, which is expected to be operational in next two years. Akruti Nirman also plans three SEZs in Mumbai and Pune.

On expansion plans, Mr Shah said that the company plans to have a pan India presence and will foray into Jaipur, Delhi, Indore, Nagpur and Ahmedabad over the next four years. The shares of Akruti Nirman Ltd on Friday closed at Rs 507, up Rs 28.75 or 6.01 per cent, on the BSE.

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