Deepak Fertilisers Forays Into Speciality Malls Biz

(Article first published in The Financial Express, 29^th September 2004)

Mumbai, Sept 28.

Deepak Fertilisers and Petrochemicals Corporation (DFPCL) has announced its foray into speciality malls through its upcoming Ishanya project in Pune, labelled as a one-stop shop for interiors and exteriors.

According to SC Mehta, Managing Director, DFPCL: "Ishanya will house about 52 product categories, apart from offices for architects, engineers, home loan companies and other service providers. It will also house a convention centre, eateries and parking space for 800 cars and 500 bikes".

DFPCL currently has a debt equity ratio of about 0.4:1 and that offers scope for further debt funding, according to Mr. Mehta. He added that DFPCL balance sheet is quite strong and there are cash surpluses.

The company is lookiing at a 2:1 debt equity ratio for Ishanya. Being an infrastructure project the pay-back period will be 4-5 years and the total outlay is slated to be Rs. 100 crore. Ishanya aims to target the burgeoning middle class in the Mumbai-Pune region along with other towns like Satara and Kolhapur.

Indian Institute of Interior Designers is the concept collaborator for Ishanya, while Indian Institute of Architects is the concept partner. Mr. Mehta stated that furniture companies from countries like Italy and Singapore have also shown interest in the Indian market. Three European universities are also likely to cooperate with Ishanya for sustainable architecture concepts. The land has been acquired with all clearances and construction is expected to begin shortly. The project is expected to be completed by end of 2005.

DFPCL's existing business can be broadly categorised into industrial chemicals ammonium intrate and agri inputs. The other upcoming projects of the company include an IPA project and a co-generation power plant.

Back