Srivari Group plans Rs 350 crore FTWZ

Real estate development company Srivari Group is looking to tap investments in the range of Rs 350-400 crore to set up a free trade warehousing zone (FTWZ) at Ennore near Chennai by the end of calendar 2010, according to sources.

The Coimbatore-based group is said to be in the process of acquiring up to 400 acres of land to set up the FTWZ. The company has made an application to the state government for acquiring contiguous land. It plans to meet the cost by roping in investments through a combination of equity capital, debt and internal accruals, sources said.

Srivari is also learnt to applied to the Ministry of Commerce and Industries for formal notification. Under the SEZ Act of 2006, FTWZs notified by the Ministry are gazetted as deemed foreign territory.

Sources said the proposed FTWZ’s proximity to rail terminals, the Sriperumbudur-Ennore expressway, Chennai port and other large infrastructure projects and special economic zones makes the site strategically ideal for trading and storage activities for export companies.

The key differentiator between an FTWZ and a standard warehouse is that FTWZ combines professionally handled, high quality physical infrastructure with benefits accorded to a free trade zone.

FTWZs have also been envisaged to come with facilities such as cost-effective skilled labour, transportation facilities, integrated warehouse management and sophisticated equipment, thereby improving the quality of infrastructure while reducing overall logistics and storage costs.

Founded in 1952, the closely held Srivari group has two arms — Srivari Property Developers and Srivari Infrastructure Ltd. It has so far developed over 750,000 square feet of residential and commercial spaces in Coimbatore, besides residential projects in Chennai and the Nilgiris. It has another 250,000 sq feet of space currently under development in Coimbatore and Chennai.