Feb. 22, 2018
Sumitomo Corporation becomes first Japanese company to enter condominium development/sales business in India
Sumitomo Corporation (Head Office: Chuo-ku, Tokyo; Representative Director, President and Chief Executive Officer: Kuniharu Nakamura) has partnered with the Krishna Group (Location: Haryana State, India; Representative: Ashok Kapur; hereinafter, “Krishna Group”) to establish the Indian business company Krisumi Corporation Private Limited (hereinafter, “Krisumi”) and join in the Krisumi City Project (hereinafter, “the Project”), a condominium development project being pursued by the Krishna Group in the northern Indian city of Gurugram in Haryana State. The Project will be the first condominium development/sales project in India featuring participation by a Japanese company.
The Project plan is to construct approximately 5,000 housing units as well as commercial facilities and office buildings over a total of eight phases on a site of about 26 hectares, making it one of the largest development projects in Gurugram. The intended construction site is located about 30 kilometers southwest of central New Delhi and about 18 kilometers southwest of Indira Gandhi International Airport, and lies adjacent to National Highway 8 (NH8), the main highway connecting New Delhi and Gurugram.
Sumitomo Corporation will be participating in Phase 1 of this project via Krisumi, constructing two condominiums (35-story towers with a total of 433 housing units) on a site of approximately 2.1 hectares, and will be considering projects from Phase 2 onward together with the Krishna Group.
The Krishna Group has been involved in numerous joint ventures with Japanese companies, and it chose Sumitomo Corporation as its business partner in order to introduce Japanese quality and management methodologies into the Project. Leveraging its experience in large-scale complex development and more than 50 years of condominium sales, Sumitomo Corporation will be helping devise the master plan for the Project as a whole and the residential plan, as well as working to put in place Japanese-style construction management, sales/building management methodologies, etc.
India’s rapid economic development of recent years has driven an expansion in its middle class, and housing demand is expected to rise still higher in future. Gurugram is a newly emerging city located in the Delhi capital area that is seeing new office buildings and high-rise condominiums going up one after the other as foreign corporations and major IT companies have congregated locally.
Sumitomo Corporation is currently engaged in housing development projects in Indonesia and China as well as India, and it is considering new housing development and real estate business elsewhere in Asia. While responding to the growing need for housing as Asian economies steadily grow, Sumitomo Corporation will be further strengthening/expanding its real estate business and contributing to local development while building the foundations for comfortable and exciting living.
|■Profile of Phase 1 Project Plan|
|Location||:||Sector 36A, Gurugram, Haryana State|
|Site area||:||Approx. 21,600 m2|
|Total project cost||:||Approx. 16 billion yen|
|Scale of development||:||Two condominium buildings (35-story towers)|
|Building area||:||Approx. 117,000 m2|
|Total number of units||:||Approx. 433 apartments|
|■Profile of Krishna Group|
|Description of business||:||Manufacture of automotive parts in India
Real estate business centered in Delhi and Gurugram, travel business, media business
■ 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” and “Establishing a Foundation for Comfortable and Enriching Lifestyles”.