Mumbai: Tata Realty and Infrastructure Ltd, a wholly-owned subsidiary of Tata Sons Ltd, the main holding company of the $62.5 billion (Rs2.98 trillion) Tata group, on Wednesday said it would invest in projects worth Rs20,000 crore with a clutch of strategic partners over the next three years. The investment will be across areas such as special economic zones (SEZs) for the information technology industry, real estate, rail, roads, ports, airports and urban infrastructure, said Sanjay G. Ubale, managing director and chief executive officer of Tata Realty, at a press conference in Mumbai.
Firm foundation: Tata Realty and Infrastructure MD and CEO Sanjay G. Ubale (right) and head, transport department, A.K. Sharma. PTI
The firm, which was set up in 2007, plans to raise about $1 billion (Rs4,770 crore) by December through its realty and infrastructure fund launched in mid-2008, Ubale said. The fund was launched in mid-2008.
Ubale said the company is in talks with investors from Europe, the US and Japan, as well as strategic partners for long-term infrastructure projects.
“Tata Realty had already raised a $700 million fund for real estate that is based out of Mauritius and 18% of that has been deployed,” Ubale said, adding that the firm will actively bid for projects from National Highway Authority of India, or NHAI, metro rail projects, monorail projects, railway station development, bus terminals, airports and ports.
Tata Realty has a net worth of Rs1,000 crore, and can “leverage itself to set up projects worth Rs10,000-12,000 crore”, said chief financial officer Kishore Salvatore.
In a note to investors on Wednesday, Shirish Rane, an equity analyst with domestic brokerage IDFC-SSKI Securities Ltd, wrote, “a stable and reform-oriented government at the Centre would lead to larger opportunities for companies in the infrastructure development, construction and power equipment sectors thereby leading the re-rating of these sectors.”
As part of its plans, the company is also looking to develop and own a merchant airport in Maharashtra and is currently evaluating at least five sites.
“This will be an alternate airport to the existing airport in the state. The airport will have both passenger and cargo terminals. The initial investments for such a project would be around Rs1,000 crore,” a senior Tata group executive told Mint on condition of anonymity because he is not authorized to speak to the media.
The company is also bidding to develop an airport at Sindhudurg in Maharashtra and will bid for Udaipur and Amritsar airport modernization along with Changi Airports of Singapore. The executive said the company would also bid for second international airport near Navi Mumbai.
It is also currently developing at least three SEZs targeted at the IT industry: a 25-acre one in Chennai at Rs3,800 crore; a Rs1,200 crore SEZ in Pune; and one in Ahmedabad for Rs460 crore. Additionally, it is developing SEZs across India where Tata Consultancy Services Ltd, also a Tata group company and one of the top three IT firms in the country, will be the anchor tenant.
On the logistics front, Tata Realty has identified key thrust areas including roads and bridges, urban infrastructure (comprising metro/monorail projects) and logistic parks.
“We want to get into end-to-end logistics chain along with ports. We will be investing around Rs2,000 crore for setting up logistics parks in 14 cities. We have already started acquiring land in Gurgaon and Kolkata,” said Phillie D. Karkaria, director with Tata Realty.