Niho Constructions to invest Rs 1,000 crore in Gujarat

Niho Construction Ltd, the flagship construction and development company of Delhi-based Krishna Group, is looking to invest around Rs 1,000 crore in Gujarat in the next three years.

The company is also aiming to build a land bank of 8 lakh sq.yard in the state.

Niho will mostly invest in constructing residential projects like townships, bungalows, apartments and others. The company is already in the land acquisition stage for upcoming township projects in Anand, Jamnagar and Gandhidham.

"We would like to invest around Rs 1,000 crore in Gujarat over the next three years and aim to have a land bank of 8 lakh sq yard. We are mostly looking into residential projects, along with retail," said Neeraj Karoul, general manager, Niho Construction Ltd.

Also, recently, Niho bought a land in Jamnagar for its Scottish City Centre, a mall-cum-multiplex-cum-hotel which will be built by June 2009.

According to Karoul, at 8 lakh sq ft Scottish City Centre will be the largest mall in Gujarat.

"Different cities in Gujarat have different potential. For instance, our research said that retail and hospitality has not been focussed too much in Jamnagar so we are building a mall there. Whereas, Anand has a huge potential for residential projects for which we are building townships with high end bungalows," said Karoul.

Karoul is expecting a turnover of Rs 310 crore from Scottish City Centre, the project cost of which is around Rs 210 crore. A six-screen multiplex at the mall will be set up by Shringar Cinemas also.

Of its Rs 400 crore worth annual turnover, at least 10-12 per cent comes from the retail space. But Karoul made it clear that the major focus of the company will be on residential projects. Karoul also mentioned that the company is open to setting up IT parks anywhere in the country.

Niho is gradually moving from Delhi and NCR to other states. Apart from Gujarat, the company will venture into seven other states including Punjab, Haryana, Uttar Pradesh, Rajasthan, Madhya Pradesh, Uttaranchal and Goa. In its aim to be a Pan-India player, the company is expecting to raise its land bank by 15 million sq ft, said Karoul.

Presently, Niho has a book value of Rs 2,500 crore for its upcoming projects across the country.

On the booming retail sector, Karoul said, "The retail sector's growth rate has been up since long. It is just that since recently we see a slowdown in its growth rate. Still of our all projects, the retail space will be increase from 3 lakh sq.ft. to 3 million sq.ft. by 2010."