Kerala is all set for a boom in economic growth. Over Rs 10,000 crore NRK investments will flow to Kerala in the next few years. And, blissfully, the driving force behind this growth is lead by Non-Resident Keralites (NRKs) – the great asset of the State.
Making Kerala proud, Malayalee businessmen rule the Gulf market. Around twenty personalities are figuring in the list of 100 most powerful Indians in the GCC (Gulf Cooperation Council) and EMKE Group Chairman Mr M. A. Yusuffali has topped the list!
Many prominent NRKs are investing aggressively in Retail, Healthcare, Tourism, Education, Reality, Entertainment and Information Technology thus boosting our economy. A lot of prestigious projects such as Lulu Shopping Mall promoted by Dubai-EMKE Group lead by Padmashri Mr. M. A. Yusufali, Textiles and Jewellery supermarkets from Mr. Joy Alukkas, Luxury Hotels and Convention centre by Mr. Mohammed Ali of Galfar group, ASTER Medcity, the flagship project of Dubai-based DM Healthcare spearheaded by Padmashri Dr. Azad Moopen, Hotels, Resorts and Convention Centres by Dr. Ravi Pillai, Information Technology Park at Kozhikode by Oman-based Manappat Group founded by Mr. Ameer Ahamed Manappat, Five Star hotel projects from Kuwait based Mr. K.G. AbrahamHotel Dubai-based KEF Company will commence various infrastructure projects under the guidance of Mr. Faizal Kottikollon and IT/ITES enabled Business Parks, Life Spaces projects by Dubai-based Prince Holding, Hotels and Resorts projects by Mr. Faisal of Emarald group and Five-star resort projects at Bekal by Mr. C.C. Thampi of Holiday Group, Dubai etc will create an impact in Kerala’s economy. These projects will generate lot of job opportunities and allied business opportunities.
However, NRK-owned companies should uphold professionalism and professional business culture as we have witnessed several NRK bitter experiences due to mismanagement and their affection to family members when they start investing in Kerala.
In the coming years, NRKs will play a key role in changing the fortune of Kerala.
NRK money: Backbone of the state
According to the Reserve Bank of India (RBI), 65 per cent of the remittance had been used for luxurious living and household expenses. If we could have a system to channelize at least 10% of the remittance to productive investment avenues, it would change the face of the country.
NRI remittances are the major revenue for the country besides Foreign Direct Investment, Direct Investment, Foreign Institutional Investors etc. Mr. K. V. Shamsudheen, Director, Barjeel Geojit Securities, Dubai explains “The capital account inflows are offsetting the current account deficit, leading to a surplus in country’s balance of payments and build-up of forex reserves. NRI remittances, placed in FCNB deposits are a big source of lendable funds in foreign currencies to the corporate.”
NRI remittances help banks in garnering huge forex business, exchange profit and deposits business. In addition to this, NRI money also helps in fostering real estate, entertainment sectors.
“In 2011, the remittance by NRKs in Kerala was Rs. 49,965 crores. This constitutes more than 22% of the GDP of the State. In the current financial year, it will cross Rs 60,000 crore. Whereas state annual budget is nearly Rs 40,000 crore only,” explained Mr. Shamsudheen who is the Chairman of Pravasi Bandhu Welfare Trust.
In the last 10 years, we received more than Rs 300,000 crore from NRKs. More than 60 per cent of the contributors are low-income household workers, drivers, semi-skilled and skilled workers from GCC countries. 60% of the remittance is from NRKs working in Gulf Cooperation Council.
Eminent economic analyst Prof. Martin Patrick pointed out that the investment by NRKs would accelerate the economic growth of the state. if NRK money is utilized for IT and IT Enabled Services, Tourism, Healthcare, Knowledge/Education, Trade and Retailing, Food and Agro Processing, Energy including Green Energy, Biotechnology/ Nanotechnology, Water & Inland Waterways, Ports, Shipbuilding and related industries & Infrastructure development, wonders can be created.
NRKs back with a bang
With a mission to prove that Kerala is ideal for investment, now, rich and leading Malayalee businessmen in the Gulf region such as Mr. M. A. Yusuffali, MD of Lulu Group and Dr. Azad Moopen of DM Healthcare and other leading Malayalee businessmen are investing actively in Kerala turning it as the land of new opportunity.
Some of the major investments by NRKs are given below:
Lulu to invest 5,000 crore
Lulu Group lead by Mr. MA Yusuffali is now going full steam ahead with a major investment drive in Kerala. “We will invest Rs 5,000 crore in Kerala through various projects. Lulu Shopping Mall worth Rs 1600 crore is all set to open along with the Marriott Hotel in Kerala. Another Marriott Hotel will be opening soon at Nedumbassery Airport apart from the state-of-the-art flight kitchen being launched in association with Lufthansa. Apart from this, we will open India’s largest Convention Centre and Five-star hotel being developed in association with Hyatt Group at Bolghati, Kochi and convention centre is coming up in Kozhikode,” said Mr. Yusuffali.
To beef up retail and exports business, the Group is developing a Logistic Centre and Cold Storage facility at Aluva.
DM to invest 2,150 crore
Dr. Azad Moopen, Chairman, DM Healthcare said that the group is investing Rs. 2150 crore in Kerala. “Kerala poses as a high priority destination for our investment in India in view of the demand for advanced healthcare facilities in Kerala. DM Healthcare, the leading healthcare conglomerate in India and the Middle East, is developing an integrated medical township titled Aster Medcity in Kochi, two super-speciality hospitals in Kannur and Palakkad and state-of-the-art medical college campus in Wayanad,” he explained.
“While there is single-window clearance on paper, on the ground, we have to deal with 15 closed windows,” said Dr. Moopen.
RP to invest Rs 1,000 crore
Dr. Ravi Pillai, the founder of Bahrain-based RP Group, said his group will invest Rs 1,000 crore in Kerala. “A world-class convention centre will be built in Thiruvananthapuram next year.”
“The foray of NRKs into the Kerala market will be beneficial for the state. First of all, these projects will change the unfriendly business image of Kerala and will give a global facelift. In addition to this, it will generate a lot of job opportunities and the state will get good infrastructure also,” opined Mr. Bharat N Khona, the former President of Mattancherry-headquartered Indian Chamber of Commerce and Industry.
“Kerala has also emerged as a source of qualified and skilled labour, and that is attracting such investments,” he added.
Galfar will open convention centre
Mr. P. Mohammed Ali, Vice Chairman and Managing Director, Galfar Engineering and Contracting Company said he is planning to build a convention centre in Thrissur. “I was one of the first to invest in Kerala when others were reluctant. Galfar convention centre was one of those pioneering investments. I am planning an investment in similar infrastructure in Thrissur.”
He stressed that NRIs have contributed to build an image for India and particularly Kerala globally.
It’s a challenge
But PNC Menon of Sobha Developers had a different opinion. “Setting up enterprises is no cakewalk in Kerala. “We started a Rs 5,000-crore township for knowledge-based companies in Kochi and bought the land five years ago. But it is still awaiting environmental clearance,” he lamented.
Sobha Developers is building a Rs 750-crore township in Thrissur and expects to complete it in 2016.
Mr. MA Yusuffali lamented that Kerala lacks good roads and rapid transport system, sewage system, quality power and potable water. “Without good roads, you are wasting the precious time, the efficiency of professionals and, above all, the fossil fuel that we need to conserve. Kerala Government should take effective measures to change this bad condition,” he said.
By K Govindan Nampoothiry
