Sanofi India has bought 150000 sq. ft. of office space in Powai, Mumbai. Once the building is completed, Sanofi India will shift their HQ from Andheri.

Pharmaceutical Major Sanofi India plans to shift its HQ.

MUMBAI: Sanofi India, the Indian subsidiary of French pharmaceutical major, has bought 150000 sq. ft. of office space from L&T Realty. The deal was fixed at a price worth Rs.220 Cr. Rs.220 Cr is, so far, the largest deal in 2013.

The Indian subsidiary of French pharmaceutical major plans to shift its headquarters from Andheri to Powai. Once the building is ready, they will shift.

Sanofi will pay the entire amount in installments. The payment is linked to building construction. The deal was signed a few days ago, two persons with direct knowledge revealed.

The construction of the 10-storey office space project has already been begun. The project is expected to be completed within two to three years. The new building is only a part of L&T Business Park. JP Morgan and L&T Infotech are currently operating in this commercial project.

Buying 150000 sq. ft. of office space, Sanofi India now plans to expand its business in India.

However both Sanofi and L&T Realty refused to comment on the deal. Offering no details, Jones Lang LaSalle India, the transaction advisor, too remained silent.

At present the headquarters of Sanofi India is located in Andheri on the Mathuradas Vasanji Road. Their current HQ is of 65000 sq. ft. The HQ building is built in a total land area of nearly 1.6-acre. Once the new HQ is ready the old HQ building may be sold.

Acquiring of new office and headquarter is considered as an expansion policy of Sanofi India which operates in India through five entities. Aventis Pharma (now known as Sanofi India), Genzyme India, Shantha Biotechnics, Sanofi Pasteur India and Sanofi-Synthelabo (India) are their five entities.

Many MNCs and Indian companies have come up with expansion policies. This is considered as their strategy to take advantage of the sluggish real estate market. The expansion of these companies impacts the commercial realty sector.