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Published on April 11, 2008

Hemaraj Land and Development is talking with Tata Motor about buying an eco-car factory site in the Hemaraj Eastern Seaboard Industrial Estate.

Last week, the Board of Investment approved Tata's Bt7.73-billion eco-car proposal.

Paopitaya Smutrakalin, director for planning and investor relations, said recently that he could not reveal information about the deal with India-based Tata Motor until it is concluded, which should be soon.

The government's eco-car promotion policy would benefit the company greatly this year because the Hemaraj Eastern Seaboard Industrial Estate is the hub for the automobile industry. The company projects its land sales rising 5 per cent to 1,300 rai this year.

"We have at least three carmakers in our industrial estate - Ford and Mazda, General Motors and Suzuki. I believe that 120 to 130 auto-assembly plants will benefit from the eco-car project, and so will we," he said.

BT Securities said in a research note that Tata may need 300-350 rai for its eco-car project and the deal should be finalised soon. Hemaraj's land sales should continue increasing from last quarter's estimate of at least 600 rai.

The brokerage expects the industrial-park developer and manager will gain from the property-tax reduction in effect since March 29.

The measure should reduce its operating costs by 4-5 per cent this year, or by at least Bt160 million-Bt200 million.

The company looks to come out ahead from the measure compared with other estate operators, due to land sales at its industrial estate and its The Park condominium project.

The securities house revised Hemaraj's land sales forecast from 1,100 rai to 1,200 rai this year. It projects the company's net profit rising 4 per cent to Bt1.21 billion this year on sales from its core business increasing by 2 per cent to Bt5.26 billion.

Nalin Viboonchart

The Nation