Mahindra Lifespace's Chennai industrial cluster eyes Rs 3,500 cr in phase-I

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Mahindra Lifespace Developers Limited (MLDL), the real estate and infrastructure development arm of Mahindra Group, has launched its industrial cluster, Origins, developed by a 60:40 joint ventue between its subsidiary Mahindra World City Developers Ltd (MWCDL) and Japan's Sumitomo Corporation. 

The project hopes to attract Rs 3,000-3,500 crore once phase-I is operational and fully occupied.

Yanmar Group, a 100-year-old Japanese business conglomerate and maker of diesel engines, and Nissei Electric, a leading Japanese player in optical fibre products and electrical components, are establishing their first units in India at Origins, Chennai. 

MWCDL and Sumitomo have jointly committed to invest Rs 1,000 crore in developing the project, which is slated to create direct employment for about 7,000 persons once fully operational. Spread across 600 acres, it will have phase-I on 300 acres.

Sangeeta Prasad, managing director and CEO, MLDL, said the company is looking at offering plug-and-play facilities in the cluster, along with value-added services such as skill development options and testing to stay ahead of the competition. The industry is seeing a trend in which customers are looking at a capex-less model, where they can use infrastructure developed by third parties within the clusters for faster growth. 

MLDL has two integrated cities under Mahindra World City in Chennai and Jaipur. It is also developing two Origins, including the one in Chennai and another in Ahmedabad, in which International Finance Corporation (IFC) is a strategic partner. The company is in talks with some state governments to set up more Origins, she added, without divulging more information. 

Mahindra World City, Chennai, set up in 2002 and spanning 1,500 acres, is near full occupancy, with about 68 companies, while Jaipur has around 88. MLDL's development footprint spans 25.2 million sq ft, or 2.3 million sq m of completed, ongoing and forthcoming residential projects across seven Indian cities. It also has over 5,000 acres under development/management at its integrated development/industrial clusters across four locations.

Sumitomo, in an announcement said Origins Chennai will be developed on about 260 hectares, and the phase-I advanced development zone is expected to house 20-30 tenant companies, mostly from Japan. This is the company's fifth industrial cluster project in the world. It has already operated and sold its own industrial parks in Indonesia, the Phillippines, Vietnam and Myanmar, said Tsutomu Akimoto, Managing Executive Officer and General Manager, Infrastructure Business Unit, Sumitomo Corporation.

In addition, Sumitomo Corporation will support speedy expansion of companies into India by creating an environment in which they can concentrate on production, with full support from Japanese staff, the company press release said.