Mall bug bites Kalpataru Group

MUMBAI: From residential apartments to shopping malls, the business of creating retail and entertainment space is attracting a lot of attention from realty developers. And joining the bandwagon now is the Mumbai-based Kalpataru Group.

A diverse company with business interests in power transmission, pharma, PVC, corporate stationery besides real-estate development, the group has floated a new concern which will be responsible for developing and managing malls at select few markets across India.

Christened Kalpataru Retail Ventures Pvt Ltd (KRVPL), the division has already embarked on its first shopping mall project in the central suburbs.

Amaan Fakih, general manager, retail, KRVPL, told DNA Money that the new division is Kalpataru’s only foray into the retailing and entertainment space so far. “The promoters are seriously looking at expanding this business across the country. In fact, we have already identified certain markets for our future projects and are exploring various retailing formats that would be an appropriate fit for the respective destinations,” said Fakih.

While it is understood that Kalpataru promoters have invested heavily in the retail division, Fakih didn’t disclose the financial details. However, he did confirm that funding is being done through a mix of debt and equity.

KRVPL is currently making use of its existing land banks in Ghatkopar and Andheri in Mumbai besides Jaipur and Jodhpur in North India for further expansion. This apart, the retail division has identified destinations such as Pune and a few others. It is exploring land deals there. “We are toying with the idea of having a speciality mall for the auto segment in one of the destinations. However, nothing has been finalised yet,” said Fakih.

While the Thane project will not have a hotel component to it, the management is keen on earmarking space for a business hotel in the forthcoming projects. The Kalpataru management has already initiated a discussion with leading Indian hotel chains like Taj Group and ITC Hotels for a possible association.

Scheduled to be operational by March 2007, KRVPL’s first shopping mall at Thane is spread over 4 lakh sq ft area and is tentatively branded as Megapolis.

Located in the heart of the city, it has been designed and conceptualised by internationally renowned architects RSA and R204 from Los Angeles and, IDCLLC of New York.

Elucidating the aspects that will differentiate the Megapolis from others in the city, Fakih said: “The mall embodies the concept of ‘one stop’ place for shopping, dinning, fun and entertainment. The idea is to maintain a regular flow of customers by housing services that households will require for their daily routine. For instance, services like florists, laundry and so on which are unheard of in other such facilities.”

Almost 80% of the retail and entertainment space at Megapolis Thane has been leased out to leading national and international lifestyle brands. Amongst other offerings is a 60,000 sq ft hypermarket catering to everyday household needs, multinational departmental store offering fashion merchandise, over 120 stores offering national and international brands across various product categories etc.

Approximately 10,000 sq ft has been earmarked for entertainment space comprising a 4 screen Fame multiplex by Shringar Cinemas, 450-seater food court offering a variety of cuisines and a handful of speciality restaurants and cafes catering to foodies.