Mahindra Life

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The project involves development of three industrial clusters (ICs) through special purpose vehicles (SPV) near Pune, Ahmedabad and Jaipur located in the Maharashtra, Gujarat and low-income state (LIS) of Rajasthan respectively (the Project) under the endorsement of the Mahindra World City (MWC) brand name. MLDL (the Sponsor) has been recognized for its focus on sustainability by the industry, and is one of the key participants of IFC’s sustainable housing leadership consortium. The Sponsor’s business is divided into three distinct focus areas: (a) Integrated Cities & Industrial Clusters: the Sponsor has pioneered the concept of integrated business cities under the brand ‘Mahindra World City’ with developments in Chennai and Jaipur. These developments span ~4,400 acres and house over 130 reputed global and Indian companies along with social infrastructure such as housing, schools and hospitals; MWC Chennai is India’s first Indian Green Building Council (IGBC) certified green township and MWC Jaipur is the first project in Asia to achieve a stage 2 climate positive development certification from C40 (a network of the world’s megacities committed to addressing climate change). (b) Residential: The Sponsor develops mid and premium residential complexes and gated communities in India’s six largest metro cities (Mumbai, National Capital Region (NCR), Pune, Bangalore, Chennai and Hyderabad) and Nagpur; c) Affordable housing: This is the newest part of the Sponsor’s business with two ongoing projects and marketed under the ‘Happinest’ brand. The Sponsor is listed on the Bombay and National Stock Exchanges and had a market capitalization of ~US$ 210 million in 2016.  The industrial project development by the SPV would entail purchasing pre-aggregated land ensuring clear titles, securing all necessary approvals including environmental clearance, developing physical infrastructure including roads and scalable utilities (water supply, power, street lighting, sewage treatment etc.) and provide operation and maintenance services for the utilities over the life of the project. As per the Sponsor’s business philosophy, non-polluting industries are permitted within the developed ICs and land is typically provided to each individual unit on a 99 year lease period, except in Jaipur, where the land has been leased from the Government of Rajasthan to MWC Jaipur for a period of 99 years. Hence in MWC Jaipur, developed land is leased to industries on a balance of term lease.  The IC near Ahmedabad will be developed over an area of approximately 350 acres in village Jansali of Limbdi taluk, Surendranagar District, Gujarat state. The site is well connected by road to major industrial and commercial hubs through NH 8A, currently a four lane road. The IC will comprise of a domestic tariff area and shall include mainly engineering and auto ancillary units.  Out of the required 350 acres, approximately 268acres has already been purchased by Industrial Cluster Pvt Ltd (ICPL) a subsidiary of the Sponsor through land aggregators and approximately 82 acres land is in the advanced process of being transferred to ICPL. ICPL has already applied for environmental clearance and has initiated an Environmental Impact Assessment (EIA) study.  The IC near Pune will be developed over an area of approximately 511 acres in Bhor taluk of Pune District, Maharashtra state. The IC will comprise of a domestic tariff area and include mainly engineering and auto ancillary units.  Out of the required approximately 511 acres, approximately 152 acres has already been purchased by Knowledge Township Limited (KTL), a subsidiary of the Sponsor through land aggregators, approximately 198 acres is in advanced stage of verification by land aggregator and will then be transferred to KTL or the SPV, as the case may be,while approximately 160 acres is yet to be purchased.  KTL or the SPV will apply for environmental clearance and initiate an EIA once the requisite land parcel has been purchased.  For IC near Jaipur, the SPV would utilize 500 acres from the existing MWC in Jaipur (~ 3000 acres) located on NH 8 (25 km from Jaipur) at Sanganer tehsil, Jaipur District, Rajasthan State. The land for the project was transferred to Mahindra World City Jaipur Limited (MWCJL) by Rajasthan State Industrial & Investment Corporation (RIICO) on a 99 year lease. The SPV would develop phase II within the already developed MWC Jaipur (74% owned by MLDL and 26% owned by the Rajasthan State Industrial & Investment Corporation (RIICO)) comprising of domestic tariff area and a multiproduct Special Economic Zone (SEZ). Environmental clearance was obtained for MWC Jaipur in November 2010 based on EIA report prepared by third party consultant for the 3000 acres project. As of date, 69 companies have purchased land within the project and of which 33 units are already operational.  The three ICs are planned to be developed over the next 4 to 6 years in a staggered manner, with full project completion by 2025. The proposed IFC investment involves a combination of equity and subordinated debt of up to US$50 million.