DS Group will make a bid for the Noida Great India Place mall

 DS Group will make a bid for the Noida Great India Place mall

Two people with knowledge of the matter indicated that the DS Group, which produces Rajnigandha pan masala and Catch spices, is considering buying the Great India Place Mall complex in Noida, a part of Delhi-National Capital Region. According to them, a deal will probably cost approximately 2,000 crore, making it one of the largest in Noida's real estate market.

On the condition of anonymity, one of the two people mentioned above stated that "the company is expanding its presence in the retail and hospitality sector."

The complex as a whole has a built area of 147 acres, which includes a number of malls and open space that might be used to construct office or residential structures. Currently, there are around 1.7 million square feet that can be developed.

The Appu Ghar Group and the Unitech Group collaborated on the development of The Great India Place. Currently, Unitech owns 42% of the mall; other investors own the other 54%.

The complex is offered for sale since its existing promoters, which include the Unitech Group, are not in a secure financial position and the complex has a debt of over $1,000 crore. Any company expanding in the retail sector would benefit greatly from this arrangement, according to a second individual who spoke on the record but who requested anonymity.

The Great India Place Mall suffered from the pandemic breakout and the opening of new malls nearby. According to estimates, the pandemic and lockdowns cost Indian malls approximately 3,000 crore.

The proposal is a part of the DS Group's ambition to diversify into upscale retail and hotels, which is based in Noida and also produces Pulse candies. It purchased Viceroy Hotels, based in Bengaluru, in July, the company that owns the Marriott-managed Renaissance Bengaluru.

The Renaissance deal cost 300 crore, and although the firm was prepared to pay for it out of internal accruals, it ultimately decided to take out a minor loan from a private bank. Therefore, the company does not have a problem with money, according to one of those mentioned above.

Up to the time of going to print, an email sent to the corporation has not received a response.

DS Group operates six hotels, including Renaissance, and generated $5,500 crore in sales in FY23. It also engages in upscale retail through organizations like Le Marche and the L'Opera coffee chain.

At a time when both industries are anticipated to grow by double digits as a result of rising disposable incomes in India, the business is placing its bets on the retail and hotel sectors.

According to a study by Anarock and the Retailers Association of India (RAI), the organized retail market in the nation is anticipated to expand at a 25% annual rate. The rising middle class in India is predicted to propel the retail sector there to $1.1 trillion by 2027 and $2 trillion by 2032.

According to a CBRE analysis, restaurants, hypermarkets, and fashion retailers were the main drivers of the 21% growth in retail leasing in India in 2022. Hypermarkets, home goods, department stores, food and beverage, and the fashion and apparel industries were further significant contributors. With 61% of the leasing activity, Bengaluru and Delhi-NCR played a prominent role among the regions.