Apr. 26, 2019
Operations to begin at ORIGINS by Mahindra World City, North Chennai in Chennai, India
Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President and Chief Executive Officer: Masayuki Hyodo), together with Mahindra World City Developers Ltd. (hereinafter, “MWC”), has completed construction work on the Phase I zone of ORIGINS by Mahindra World City, North Chennai (hereinafter, “ORIGINS Chennai”) being developed near Chennai in the Indian state of Tamil Nadu, and an opening ceremony was held today.
India’s GDP growth rate for 2018 was 7.3% (source: International Monetary Fund (IMF) report dated October 2018), the highest among major countries. The number of Japanese companies newly setting up operations in India in 2018 was 1,441, representing a year-on-year increase of 5.3%. Chennai (Tamil Nadu) has long flourished as the “gateway to South India”, and recent years have seen an uptrend in the expansion of Japanese companies looking to make the city a production/export base.
ORIGINS Chennai is located in Ponneri taluk, 37km north of central Chennai, Tamil Nadu’s state capital. The development area will be up to 260 hectares, and the Phase I advanced development zone is expected to house 20-30 tenant companies, mostly Japanese firms. In anticipation of a wide range of companies moving in, lots of 5,000m2 and larger will be available for sale, and consideration is being given to building rental factories.
Sumitomo Corporation has heretofore developed, operated and sold its own industrial parks in Indonesia, the Philippines, Vietnam and Myanmar. Utilizing the know-how it has cultivated in the process, ORIGINS Chennai will comprehensively develop on-site construction and infrastructure (roads, water supply, sewage, etc.). In addition, Sumitomo Corporation will support the speedy expansion of companies into the India by creating an environment in which the companies can concentrate on production, including full support by Japanese staff.
Sumitomo Corporation will be working with MWC to attract manufacturing companies to ORIGINS Chennai with the aim of contributing to India’s industrialization and economic development, and will be offering Japanese companies backup support for further expansion.
|■Profile of ORIGINS by Mahindra World City, North Chennai|
|Primary contractor||:||Mahindra Industrial Park Chennai|
|Name of industrial park||:||ORIGINS by Mahindra World City, North Chennai|
|Location||:||Near Chennai, Tamil Nadu State, India|
|Investment ratios||:||MWC: 60%, Sumitomo Corporation: 40%|
|Total investment||:||Approximately 7.5 billion yen|
|Development areas||:||Phase I zone: approx. 107 hectares (advanced development)
Phase II zone: approx. 150 hectares
■ Sumitomo Corporation’s Material Issues
Sumitomo Corporation Group positions “Six Material Issues to Achieve Sustainable Growth with Society” as an important factor in developing business strategies and in the decision-making process for individual businesses. Going forward, we will pursue sustainable growth by resolving these issues through our business activities. This project especially contributes to “Contributing to the Development of Local Communities and Industries” .