Date:31/10/2007 URL: http://www.thehindu.com/2007/10/31/stories/2007103157061900.htm

Business

Tata Realty forms JV with Jafza

Staff Correspondent

To invest up to Rs. 10,000 crore in logistics parks

— PHOTO: VIVEK BENDRE

ENHANCING VALUE: R. K. Krishna Kumar (right), Chairman, TRIL and Director, Tata Sons, with Jamal Majid Bin Thaniah (left), Vice-Chairman and Group CEO, Ports and Free Zones World, and Salma Hareb, CEO, Jafza & Economic Zones World, at the signing of the joint venture in Mumbai on Tuesday.

MUMBAI: Tata Realty and Infrastructure Ltd. (TRIL), a 100 per cent subsidiary of Tata Sons, on Tuesday, signed a 50:50 joint venture with Jafza (Jebel Ali Free Zone) International, the global operation arm of the Economic Zones World of Dubai, UAE, to develop and operate a chain of business and logistics parks across India.

The yet to be christened joint venture will develop a network of business and logistics parks adhering to global standards of quality and excellence. The joint venture will be managed by a board of directors, which will see equal representation of both partners.

Addressing a press conference here, Dinesh Chandiok, CEO and Managing Director, TRIL, said, “The first phase would encompass seven locations across the country and entail a joint investment of Rs. 2,400 crore. In the second phase, 15 to 20 more hubs would be added and the total investment in both phases would be around Rs. 10,000 crore. However, the structure and the means of funding have not yet been fixed.”

“Our joint venture with Jafza International is dedicated to enhance value in logistics management. We are in the process of identifying land outside major metros and are at the point of freezing locations for the logistics parks in India,” R. K. Krishna Kumar, Chairman, TRIL, and Director, Tata Sons, said.

Jamal Majid Bin Thaniah, Vice-Chairman and Group CEO, Ports and Free Zone World, said, “ Dubai World Group (the parent of EZW & Jafza) already has major involvement/commitments in the Indian economy in the field of real estate, infrastructure development, logistics and transport. With the Tata partnership, Jafza International is planning to expand its operations in India.”

“In the framework of the joint venture, the proposed network of business and logistics parks would provide an infrastructure platform for integrated trade and logistics services across the country,” Samir Chaturvedi, Executive Vice-President, Jafza International, said.

The key focus, according to Mr. Chaturvedi, is to find the right site although the Tatas, who have a huge land bank across the country, have offered their resources.