An India-based company is exploring investment opportunities in Cambodia’s real estate and hotel market and says it will invest $1 billion over five years.
Vidip Jatia, a director of Supreme Holding and Hospitality (India) Limited, said the Cambodian economy is growing quickly and his company is here to explore investment opportunities in the Kingdom.
The first phase of his company’s five-year plan will involve a $100 million investment in Cambodia’s real estate market, he said. “When it comes to real estate development, we are looking for local partners to come with their land … and be associated with our $100 million investment in 2016 in Cambodia,” Mr. Jatia said.
“We are primarily looking at the hospitality and service industry and we have a collaboration with Higher International Group in India … we lobby and get them over here because we see a big opportunity in hospitality and tourism here,” he added. “Cambodia has become one of the good destinations for tourists in ASEAN.
“We typically work with serviced apartments and hotels, so we are looking at areas in Phnom Penh to invest in. We see a lot of opportunity here and we want to be here.”
Supreme Holdings was incorporated in India in 1982 and became a publicly listed company on the Mumbai Stock Exchange in 1994. Supreme Holding’s business and ownership interests have largely been in five-star hotel development and operations, real estate development, trading, food and beverage and other ventures.
Brett Sciaroni, the chairman of the International Business Chamber, said there is an historic link between Cambodia and India. “We need to develop that further and I’m so happy to see our friend (Mr. Jatia) here, because precursors of things to come, we need diversification not only in terms of being economically diverse, but in term of investors – we haven’t had enough Indian investment, but it is coming. You can see it,” Mr. Sciaroni said.
Ho Vandy, an advisor to the Cambodia Chamber of Commerce and the president of World Express Tour and Travel, said the hotel sector depends on both international and local tourists for success in Phnom Penh or in the provinces tourists travel to.
“First, they need to know the number of tourists coming to the Kingdom, their target customers and the tourism market, as they need to cooperate with local partners to make such an investment,” Mr. Vandy said. “They can be successful in this sector if they have experience in the sector,” he added.
According to a report from the Federation of Indian Chambers of Commerce and Industry, bilateral trade with Cambodia was about $160 million in 2014-2015, an increase of about 4 percent from the $154 million in 2013-2014. Cambodia exported footwear, rubber, fruit and nuts, lime, cement, salt and stone to India. Indian exports to Cambodia comprised pharmaceutical products, cotton and man-made fibers, leather, vehicles and plastic, according to the report.
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