DECEMBER, 20249HOSPITALITY PLAYERS FORAY INTO MANUFACTURING ZONES FOR EXPANSION PLANSIndia's rapidly growing manufacturing sector is fueling the expansion of mid-range and upscale hotels into industrial hubs, addressing the increasing need for quality accommodations for business travelers. Prominent hotel chains such as Marriott, Hyatt, Orchid, Regenta, Vivanta, and Ginger are establishing properties in key manufacturing zones, including Vithalapur, Talegaon, Chakan, Bhiwandi, Pithampur, Kalinganagar, Sanand, and Hosur. This shift reflects a growing trend where visiting executives prioritize staying closer to their factories to avoid long commutes and traffic congestion.In Vithalapur, an emerging automotive hub located over two hours from Ahmedabad, luxury hotels like Courtyard by Marriott and Hyatt Place are set to open within the next year. Similarly, the recently launched 100-room Fern Residency in Talegaon, on the outskirts of Pune, has already gained traction among corporate travelers. Pithampur in Madhya Pradesh, another industrial hotspot, is attracting mid-market options like Click Hotel and Sayaji, driven by a robust demand from the manufacturing sector. Meanwhile, in Chakan and Bhiwandi--significant industrial zones near Pune and Mumbai--Ginger Hotels is developing 200-room properties to cater to the growing influx of business visitors.This surge in hospitality development highlights the untapped potential of India's manufacturing clusters. According to Nandivardhan Jain, CEO of Noesis, a hotel investment and advisory firm, manufacturing hubs represent significant opportunities for the hospitality industry. "With multinational corporations and SMEs expanding their presence in these regions, there's a critical need for quality accommodations for business travelers," he said.As manufacturing activity intensifies across these regions, the hospitality sector is stepping up to support the growing corporate demand. These developments not only reflect the transformation of industrial hubs but also underline the strategic role of hotels in facilitating business travel and supporting India's industrial growth. GOVERNMENT PLANS INCENTIVES TO INCLUDE EXISTING AUTOMAKERS IN SCHEMESIndia is set to broaden its electric vehicle (EV) incentives to include automakers manufacturing EVs at existing factories, a shift from the earlier focus on attracting investments for new plants, according to a source familiar with the matter. This policy adjustment aims to stimulate EV production and investment across the board, regardless of whether automakers build new facilities or repurpose existing ones.The original policy, announced in March, was initially tailored to entice Tesla to establish local manufacturing operations. However, the U.S. automaker has since backed away from those plans. Meanwhile, other international automakers, including Toyota and Hyundai, have shown interest in EV production in India, both at new and existing factories, as per minutes from a meeting with the Ministry of Heavy Industries.Key features of the EV policy include incentives for automakers investing a minimum of $500 million in EV manufacturing in India, provided that at least 50 percent of components are sourced locally. Qualified automakers are eligible for a significant reduction in import taxes--down to 15 percent from rates as high as 100 percent--for up to 8,000 EVs annually.The decision to extend these benefits to existing factories aims to unlock investments from automakers currently producing gasoline and hybrid vehicles in India, making the policy more inclusive and flexible. This move is expected to accelerate the country's adoption of EV manufacturing and further India's goal of becoming a global EV hub. TOP STORIES
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