Mumbai-based Arshiya International Ltd, an end-to-end logistics solutions provider, is looking to acquire 100 acres of land each in Chennai and Kolkata from defunct Special Economic Zone (SEZ) developers to construct, implement and operationalise Free Trade and Warehousing Zones (FTWZs). The company has a Rs 3,652-crore investment plan for the next two years.
“We are looking for an opportunity to get land from industrial houses who acquired it either from the government or individual farmers for developing SEZs that could not pursued,” said Ajay S Mittal, chairman and managing director.
Many small and mid-size industrial houses had acquired an many locations across the country for developing SEZa but found the going tough due to the huge investment and high gestation period for return on investment needed. Many urged the government to de-notify the SEZ plan but still hold the acquired land.
Arshiya is awaiting successful commencement of Dhamra port, currently under construction in Orissa, between Paradeep in Orissa and Haldia in Bengal, to identify the best location near Kolkata.
The objective behind the move in Kolkata is to serve customers in the fast-developing eastern markets.
The company is also scouting for an opportunity to set up an FTWZ in Chennai to serve customers in the southern states.
Arshiya, which operationalised India’s first FTWZ at Panvel (Navi Mumbai) over 165 acres last year, is in the process of developing two more, one at Khurja, Uttar Pradesh (near Delhi) and Nagpur, Maharashtra, with a total landholding of 315 acres and 115 acres, respectively.
The two projects, are scheduled for implementation in June and December this year respectively. The company had spent Rs 1,600 crore till December 2010.
According to the government guidelines, 100 acres is the minimum required for developing FTWZs. The Panvel FTWZ has a 100 per cent booking and many more are awaiting any vacation in space to get in, said Mittal.
The company also plans to add to its existing rail transportation capacity of 15 wagons. It is also looking for a rail terminal facility at Khurja, as transporting goods through rail is 30 per cent cheaper than road.
Arshiya’s current debt equity ratio is 1:1. For the proposed Rs 3,652-crore investment, around Rs 2,640 crore will be met through debt and the remaining Rs 1,012 crore raised through equity.
