Mahindra World and Japan's Sumitomo form JV for industrial park in TN

Marking its foray into industrial park space in India, Japan’s Sumitomo Corporation has formed a joint venture with Mahindra World City Developers Limited, a subsidiary of Mahindra Lifespace Developers Limited (MLDL), to set up an industrial park in North Chennai (the NH5 corridor).
 
Mahindra World City Developers Limited will own 60 percent in the new JV, Mahindra Industrial Park Chennai Limited, which envisions investment of about Rs 375 crores.
 
Companies expect the new industrial park to become one of the key enablers to catalyse the ‘Make in India’ initiative announced by the Government of India. The expertise of the Mahindra Group and Sumitomo Corporation in developing world class industrial parks will provide an impetus to this ‘Make in India’ initiative. The proposed industrial park, spread over 300 acres, is expected to fulfil that requirement and help India emerge as a manufacturing destination for more MNCs.
 
Akito Shiraishi, general manager, overseas industrial park department, Sumitomo Corporation, said “This will be our first venture in the industrial park space in India. We are encouraged by the proactive stance of the Government at the Centre and we see a lot of potential for this venture attracting investments of the right pedigree, and being an extremely successful venture.
 
Tamil Nadu is one of the most preferred destinations for Japanese investors in India, with over 557 Japanese companies having already setup their facilities in the state.
 
“We see the partnership with the Mahindra Group as a stepping stone toward more opportunities in this space. We would like to see the relationship with the Mahindra Group extend to other areas where there are synergies between the two groups,” commented Masahiro Narikiyo, chairman & managing director, Sumitomo Corporation India Private Limited.
 
Anita Arjundas, MD & CEO, Mahindra Lifespace Developers Ltd, said, “While it is our maiden venture together, the experience of both the Mahindra Group and Sumitomo Corporation in this space will certainly create an industrial park which will attract companies from across the world to set up their facilities in an enabling environment. The joint venture is poised to reap the benefits of best practices from both the groups.”
 
Sangeeta Prasad, CEO, Integrated Cities and Industrial Clusters, Mahindra Lifespace Developers Ltd. said “Mahindra and Sumitomo have created bench mark developments in the industrial park space. We are confident that this JV with Sumitomo will give an impetus to companies, especially those from Japan, to set up a base in our park. We look forward to the Tamil Nadu Government’s continued support in our second development in the state.”
 
Mahindra World City (MWC) is a joint venture between MLDL and Tamil Nadu Industrial Development Corporation (TIDCO) spanning over 1500 acres and comprises product specific special economic zones (SEZs) and a domestic tariff area (DTA). It houses more than 64 blue chip companies including BASF, BMW, Fujitec, Infosys, Renault Nissan to name a few. MWC Chennai has garnered a cumulative investment of Rs 5000 crores, generated cumulative exports of Rs 34,000 crores and employment for 37,000 people since its establishment. It also offers residential and social infrastructure as a part of the integrated ecosystem.