Deepak Fert Mulls Foray Into Malls

(Article first published in Financial Express on 5^th December 2003)

MUMBAI, DEC 4

In an attempt to arrive at a diversified basket, Deepak Fertilisers and Petrochemicals Corporation Ltd (DFPCL) plans to build a speciality mall in Pune to cater to the commercial and residential property market in western India. The mall, named Urban Spaces, will be situated in Pune and marks the company's entry into the services sector.

SC Mehta, managing director, DFPCL, said that the speciality mall would be first step in the diversification strategy to enter the services sector. "The investment is in the tune of Rs 100 crore and the construction will begin in March next year with completion within 18-20 months," said Mr Mehta.

He added that the cost would be met through a combination of debt and equity, but refused to talk about the break-ups. On the question of the larger business strategy. Mr Mehta did not rule out synergy with companies whom would be associated with this concept of speciality mall.

"There are a lot of add-ons like logistics, which will come along with the building of the mall and we will be definitely looking at them in due course," said Mr Mehta. He remarked that the spinning-off of the business into a separate entity would be decided as the service business of the company evolved in the time to come. Urban Space is being tipped as a speciality mall, which will cater to the interior and exterior spaces. The mall is spread over a five lakh square feet in a 10 acre area and will house national and international architects.