“We have ensured that no investor coming to Kerala will have to face the cobweb of procedural delays and meet barriers of red tape,” said the chief minister in his keynote address at the investor summit. “We have made major strides in simplifying procedures with regard to investments,” he added.
Vijayan’s assurance may well be music to the ears of business houses and prospective investors in Kerala, a state not exactly known to be one of the most investor-friendly. After all, the LDF’s leftist ideologies – the chief minister is himself a politburo member of the CPI(M) – and the party’s image as being union-friendly has all but ensured lukewarm investor sentiment across the state.
The imagery notwithstanding, several legacy businesses including UAE-based Lulu Group, Aster DM Healthcare and V-Guard Industries among others, have originated in Kerala. However, on day one of the Invest Kerala, the biggest investment commitment came from the Adani Group, with Adani Ports and SEZ committing a total of ₹30,000 crore over a period of five years, towards various projects in the state.
Adani Ports’ bumper investment: ₹30,000 crore in five years
Adani Port’s investment will include a sum of ₹5,500 crore towards expanding operations of the Thiruvananthapuram Airport, and another ₹20,000-crore investment at Vizhinjam, with the objective of converting the port into a massive transshipment hub.
“Vizhinjam is strategically located along the world’s busiest shipping lanes. Even before commissioning, the Port made history by docking the largest container vessel to ever touch the Indian shores, with a capacity of 24,000 containers,” said Karan Adani, Managing Director at Adani Ports and SEZ, adding that the company’s vision was to make Vizhinjam the largest trans-shipment port in the region.
The company’s investment outlay for the Thiruvananthapuram Airport will see its capacity increase from 4.5 million to 12 million passengers, once expansion plans are completed. The company also plans to build a logistics and e-commerce hub in Kochi.
Lulu Group, Aster and Brigade pledge big bucks
Not to be left out, the Lulu Group has committed to invest towards building the largest food-processing facility in Kerala. Speaking exclusively to CNBC-TV18, Lulu Group chairman, MA Yusuff Ali said the foundation stone for the project would be laid within the next two months.
“We will lay the foundation for Kerala’s largest food-processing plant and are investing ₹12,500 crore towards this plant, which will be built on government land,” said Yusuff Ali, “The architectural, tech and cold-storage blueprints for the food-processing plant is complete, and we will be laying the foundation stone within the next two months.”
Fresh from its merger with Quality Care India Limited, Aster DM Healthcare, is plotting its next phase of expansion in the state. While he divulged no specifics in terms of investment, the company’s director, Anoop Moopen said Aster was on the lookout for locations to expand its hospital network beyond Thiruvananthapuram, Kochi and Kasargod.
“We are exploring other locations in Kerala to expand our presence,” Moopen said, in an exclusive chat with CNBC-TV18, “After our merger with Quality Care, KIMS Health in Kerala will be added to network – so, this will further enhance our presence in the state.” He added: “As it is, nearly 55 to 60 percent of our top-line revenue is from Kerala; this will now increase after the merger.”
Meanwhile, the Brigade Group has announced a ₹1,500 crore investment in Kerala over the next five years, a move that its own estimates say could lead to the generation of 12,000 jobs. The company submitted an Expression of Interest (EOI) at the investor summit.
As part of the proposal, Brigade will develop a second World Trade Center (WTC) in the state, adding to its existing WTC in Kochi. It also has plans for a new residential project in Kochi and a luxury island resort in Vaikom, with completion expected by 2030.
While investment plans and pledges for Kerala appear solid, what remains to be seen is how many of these commitments turn into actual investments on the ground. However, for a state that’s looking to shake off its left-wing image and turn more investor-friendly, these proposals make for the perfect start.
