Kuvera India ‘Goes Green’
Last year, Irish company Kuvera Properties purchased a 50% equity stake in Indian building company V.G. Buildtech to build several phases of a development in a Special Economic Zone located in Rudrapur, 250km North East of Delhi in Northern India. This huge 4,200 acre site was marketed to top Indian and international companies. 465 large companies have been allocated plots to date. Construction of 388 factories is in progress, with another 77 units having already begun production of goods.
This has been enhanced by the Government decision to attract manufacturers to the area by introducing fiscal incentives to encourage economic development. Special Economic Zones (SEZ) were set up by the state organization SIDCUL (State Infrastructure and Industrial Development Corporation of Uttrakhand).
50,000 people will be employed directly in the industrial estate when it is fully operational by the end of this year, with another 250,000 people directly employed in the area. Only 10,000 new homes will be constructed in Rudrapur over the same time period.
Kuvera India and VG Buildtech are in the process of building four separate projects of residential and commercial property. This will consist of 500 apartments and a serviced apartment hotel. However, the company is very aware of the environmental damage caused by large building projects, particularly in rural areas such as Rudrapur.
They have now joined forces with renowned Indian architect Arvind Guptra who is designing a commercial complex for Kuvera as a landmark building. VG Buildtech has set up a separate company called Green Concrete Ltd for the production of environmentally friendly bricks for the entire build.
In line with their policy for environmental protection with all the added economic benefits, Kuvera India now has a team of workers on site manufacturing the bricks required for their developments. Kieran Murphy, Managing Director of Kuvera Properties comments “We are producing bricks made from fly ash (along with cement and coarse sand). Fly ash is generated during the combustion of coal for energy production and is recognised as a major industrial pollutant, We (Kuvera) now manufacture our own bricks, which effectively disposes of this fly ash from coal burning utilities. Manufacturing clay brick requires kilns fired to high temperatures, this wastes energy, pollutes air and generates greenhouse gases that contribute to global warming. In contrast, fly ash bricks are manufactured at room temperature, they conserve energy, cost less to manufacture, don't contribute to air pollution or global warming and are much stronger than normal clay bricks”
Kuvera India is also constructing a new batch plant where sand, gravel, cement, water and other materials are turned into concrete for the construction of buildings and roads. This has many advantages, in terms of quality, availability and cost. The cement goes through a quality control process, ensuring a very high build standard.
Leading companies that have bought plots in the Special Economic Zone include:
- Tata: One of India’s largest car manufactures, with 96 divisions and employing over 246,000 people – an incredible 1000 acre site
- Nestle: The world’s largest food and beverage company – 24 acres
- Bajaj: One of India’s leading motorbike companies – 60 acres
- Jagson Pal: Among India’s premiere pharmaceutical companies – 11 acres
- HCL: Leading global Technology and IT enterprises with annual revenues of US$ 4 billion – 9 acres
The Rudrapur Property Market is booming with a huge amount of investment in the area. Economic growth is very strong and there has been a large influx of people moving into Rudrapur creating a severe housing shortage. A large amount of investment - US$2 billion has already being invested in the 4,200 acre special economic zone at Rudrapur.
Kieran Murphy, Managing Director, Kuvera India, just back from a site visit comments “More and more investors are looking to India. The price of land in Rudrapur is moving upwards at an extraordinary rate and it is estimated that the population of Rudrapur will reach 1 million people by the end of the year. I visited the new Leyland site under construction in Rudrapur which is over 500 acres in size. The SEZ may be extended by another few thousand acres (currently 4,200 acres), this bodes well for investors over the medium term. Completion of the Mountain View colony (as they call it in India) is now estimated to be April / May 2009”.
Over the last ten years India has become one of the world’s greatest economic success stories. The world’s biggest corporations have been investing in India and this is evident from the booming IT sector. However it is not only India’s IT industry that is creating the growth. Almost every other sector in India is booming including tourism, telecommunications, media, financial markets and the property market. India’s property market has been growing rapidly for several years but it is only recently that the laws were changed making it possible for foreign investors to invest in Indian property.
Merrill Lynch has predicted a 7 fold increase in the property market from 2005 to 2015. This rapid growth is why so many investors currently are investing in Indian real estate. A report by property consultants Jones Lang LaSalle estimates that US$10 billion will be injected into Indian real estate from overseas in the next 12-18 months.
Kuvera Properties will be launching a new development in April and are accepting pre bookings during the month of April. Prices at their new development will range from €40,550 - €43,500. A 5% discount to these prices apply during the pre booking period.