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Hunter Beer Maker Joins Realty Play with Madhya Pradesh Land Buy
| May 23, 2008 |  (Be the first to rate this story!) Loading ... |
The Bhopal-based Som Distilleries and Breweries, manufacturer of the Hunter beer, has acquired a 50-acre prime plot in Gwalior for Rs 266 crore from the Madhya Pradesh government. The company will develop a retail mall, a theme mall and two hotels — a star hotel and a budget hotel — as well as residential apartments, in the property.
The project, called Thatipur Gandhi Road Project, is a 60:40 collaboration with Patel Engineering and marks the brewing company’s foray into realty business. Sompel, the company in charge of the project, is promoted by Som Distilleries.
“The project is expected to generate a valuation of Rs 2,500 crore in three years. This project will boost the growth of the company further,” Som Distilleries’ chairman and managing director JR Arora said.
The project is part of the state government’s housing scheme for its employees, wherein the builder is required to construct a certain number of houses.
The cost of the project will be deducted from the amount to be paid to the government, on account of acquisition of the land on a 90-year lease. The project will cost around Rs 100 crore, and will be financed through internal accruals, financing from customers, institutional borrowings, etc, Mr Arora said.
The bid comes as a breakthrough for Som Distilleries, which has been looking for opportunities to diversify from the brewing and distilling business. The Rs 200-crore company, which introduced the concept of strong beer in India, has plans to venture into the South Indian beer market.
Though it controls 12% of the country’s premium beer market, the distribution has been limited to the North Indian market up till a few months ago. Now the company is planning to access brewing facilities through bottling contracts, acquisitions and Greenfield projects in southern markets.
News Published Under: Real Estate India |
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