Deepak Fertilisers plans realty foray with mall in Pune

Project cost at Rs 100 cr, Rs 60 cr to be provided by a bank consotium

The Rs 600 crore Deepak Fertilisers and Petrochemicals Corporation Ltd (DFPCL) announced its foray into retail and real estate development. The company is promoting and developing a five lakh square feet specialty mall at Pune at a cost of Rs 100 crore.

The company is currently in talks with leading banks to part finance the construction of the mall. It is learnt that a consortium of ICICI Bank, HDFC Bank and State Bank of India is likely to provide Rs 60 crore of funds for the project. The balance Rs 40 crore has been raised internally by the agri-chemicals company to acquire a 10 acre plot of land in Pune.

SC Mehta, managing director, DFPCL, said, "Market studies have revealed a fundamental demand for a holistic approach to interiors and exteriors development from home and office owners as well as from industry professionals. The global trends of better design have firmly entered the Indian market."

The mall, slated to open by 2005 end, should break even in five years, he added. It will be marketed by real estate advisory Knight Frank India and ICICI Property Services, the property management and services division of ICICI Bank.

As Mehta pointed out, the diversification was being done to capitalise on the construction boom. According to estimates, the Rs 2.4 lakh crore construction and interiors industry is growing at over seven per cent annually. Further, the government has planned investments of around Rs 20 lakh crore over the next ten years.

Considered as the first of its kind in India, the design and development of the mall will cater to the construction and interiors industry, hotel and retail industry, as well as home and office owners.

The centre will have offices for architects, interior designers, banks, and other related services providers apart from facilities such as convention centre, design studios, product launch and exhibition arena.

Internationally, specialty malls such as The Building Centre in London and The Furniture Mall in Singapore have been operating as one-stop shopping destinations for retail shoppers.