Sanofi India to Sell Mumbai Headquarters Amidst Office Space Boom
French pharma giant Sanofi's Indian arm is putting its 150,000 sq ft Mumbai headquarters on the block, as it shifts operations to a new leased office in Vikhroli.
Sanofi IndiaMumbaiOffice SpacePharmaceutical IndustryCommercial Real EstateReal Estate MumbaiJul 10, 2024
The deal involving the Powai asset is expected to fetch around Rs 250 crore based on current property rates. Sanofi's Indian subsidiary had acquired this built-to-suit office building from L&T Realty in 2013, which is part of L&T Business Park, a commercial complex that also houses JP Morgan and L&T Infotech.
In May 2023, Sanofi's board of directors decided to demerge its consumer health business into a separate legal entity, allowing it to pursue its growth strategies independently. The demerged entity, Sanofi Consumer Healthcare Ltd, will operate from the newly leased Vikhroli office premise, which is currently undergoing fit-out and will be completed soon.
According to Sanofi India's Managing Director Rodolfo Hrosz, the company is committed to the Indian market and plans to launch one or two products every year from its innovation portfolio in the country. India is a key market for Sanofi, with Hrosz stating that the country is 'super important' for the company, given its large talent pool and growing demand for pharmaceutical products.
The Indian office sector has been witnessing sustained growth in demand despite global sluggishness, with the performance seen as a testament to the strong fundamentals of demand and the absence of any lasting effects of global headwinds. Recent data shows that the office market surged to its best-ever first half with gross leasing of 33.5 million sq ft, up 29% from a year ago, surpassing the previous first half record performance of 30.71 million sq ft seen in 2019.
Frequently Asked Questions
Why is Sanofi India selling its Mumbai headquarters?
Sanofi India is selling its Mumbai headquarters to shift operations to a new leased office in Vikhroli and to monetize its asset.
What is the expected value of the Powai asset?
The Powai asset is expected to fetch around Rs 250 crore based on current property rates.
What is Sanofi Consumer Healthcare Ltd?
Sanofi Consumer Healthcare Ltd is a separate legal entity demerged from Sanofi India to operate its consumer health business independently.
Why is India an important market for Sanofi?
India is an important market for Sanofi due to its large talent pool and growing demand for pharmaceutical products.
What is the current trend in the Indian office market?
The Indian office market is witnessing sustained growth in demand despite global sluggishness, with a surge in gross leasing to 33.5 million sq ft in the first half of the year.
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