Kalani group lines up Rs 1400 cr capex plan

Indore-based Entertainment World Developers, which is a part of the Kalani group, plans to enter Gujarat by building a shopping mall-cum-multiplex at Vadodara.

Later, it will move to Ahmedabad and Surat with the same purpose.

The multiplex at Vadodara will be located close to Sayaji Rao University on 3,50,000 sq ft, which will include parking facilities as well.

The investment for the project, which will be completed by 2008, is close to Rs 58 crore. Next in line are Ahmedabad and Surat, where the company is still finalising the partners and acquiring land.

The project is part of the company's plan to build ten shopping centres cum multiplexes across the country which will include Indore, Raipur, Udaipur, Chandigarh, Jabalpur and Ujjain among others.

This will be done in two or three phases by the end of 2011. The total investment for the expansion is around Rs 1,400 crore, of which Rs 475 crore have already been invested in the first phase.

"Gujarat is an attractive prospect for investors and the mall at Vadodara will give us a first mover advantage, as there are not many players in the market. Although Ahmedabad and Surat have a high number of entertainment complexes, they are among the fastest growing markets in the country, hence it will not be very difficult to break even," said Manish Kalani, managing director, Entertainment World Developers.

The company also plans to give a special focus on Indore, where three malls are expected to be built. One of them is estimated to cost Rs 174 crore and will come up on a one million sq ft land, making it one of the largest malls in central India. Other than the mall project, the firm plans to also develop two townships in central India, with 35 lakh sq ft of land at a cost of Rs 630 crore.