Mahindra group company, Mahindra Lifespace Developers, is keen on acquiring more real estate in the Kandivali factory from its parent, Mahindra & Mahindra (M&M), to further build up on the head start following the acquisition of 9.2 acres in February for ₹365 crore.
The Kandivali plant is one of M&M’s oldest plants in India, and is the only operational automotive plant in Mumbai. With bigger and modern plants set up elsewhere, M&M’s dependence on the Kandivali plant is reduced.
The automaker presently makes pickup trucks at the plant. It is one of M&M’s 11 plants in India and is involved in vehicle aggregate and assembly operations. Besides being located next to the six-lane highway, the metro line runs close to the plant. The easy access to Kandivali railway station and shopping malls making it a prime property.
Speaking to BusinessLine, Arvind Subramanian, Managing Director, Mahindra Lifespace Developers, said, “This is part of a much larger land parcel; over time, other pieces of that will also come up for development. It’s a gold mine. But this is not going to happen soon. It will take a long time because M&M has an operating office and factory there. But it opens the door for a much larger destination creation.”
Mahindra Lifespace will launch its Kandivali project in less than 12 months, which will be its second project in that suburb after the “Mahindra Roots” project. Located next to the Western Expressway Highway, this new project will be targeted at mid-segment buyers.
Mahindra Lifespace has started the design work on the project, hoping to get it to market by Q1 of FY24. The official launch of the project will take place then with the commencement of presales, which will be done in phases.
“Our Kandivali project (of 9.2 acres) is going to be purely residential with some convenience retail but essentially a residential development. Overall, it will be a one-million-sq-ft development, potentially of ₹2,500 crore in sales value. It will be an average of four years before we start handing out the possession,” Subramanian added.
Most of the new generation products, like the XUV 700 and the Scorpio, are manufactured at M&M’s Chakan factory.
“While we recently sold a part of unused land to Mahindra Lifespaces. Any reports of M&M planning to liquidate its Kandivali facility are purely speculative. Production at the plant has been on-going. We continue to manufacture close to 80,000 pick-up trucks annually at the facility along with several aggregates,” said an M&M spokesperson.
July 03, 2022