Adani to Invest $2 billion to set up International Convention Centre, takes on Jio World

The Adani Group is planning to spend around $2 billion to build Mumbai's largest international convention centre (ICC) near the international airport that it operates, two people aware of the matter said.

The Mumbai Metropolitan Region Development Authority (MMRDA) has okayed the centre's design, which covers its broad scope, while approval for the detailed blueprint is expected in two months, one of the two people cited above said.

The plan puts the conglomerate in direct competition with Reliance's Jio World convention centre which operates at Bandra Kurla Complex, a coveted corporate hub. Adani will build its own centre at the western suburb of Vile Parle, close to the airport, for maximum visibility. The group manages a total of 11 airports in the country.

The convention centre spanning 1.5 million sq. ft, will be able to accommodate 15,000-20,000 people, the person cited above said. Total indoor area is likely to be 1.2 million sq. ft, with 0.3 million sq. ft for vehicle parking and other purposes.It will be owned and managed by Adani Airport Holdings Ltd, even though most of Adani's real estate projects are owned by Adani Realty.

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The ICC will also host a five-star hotel with 275 rooms, the person added. At present, the Jio World Convention Centre is the city's largest, with a total area of about 1 million sq. ft, while Yashobhoomi in New Delhi is India's largest convention and exhibition centre spanning 3.2 million sq. ft.

“Large corporates often choose to develop convention centres near major transit and transportation hubs such as airports for hosting events like conferences and exhibitions, as they help in promoting their image and allow for networking on a global scale,” said Anuj Puri, chairman, Anarock Property Consultants Pvt. Ltd. “These venues typically offer facilities that foster innovation and partnerships among participants. Moreover, being close to airports ensures smooth travel arrangements for guests, which is great for time saving and increased convenience. Such undertakings can play a big role in fostering business expansion and generating economic benefits across different sectors," Puri added.

ICCs host conferences and exhibitions that connect local manufacturers with global buyers and help exchange ideas, playing a crucial role in promoting a country's trade and export potential.

New Delhi's Yashobhoomi was built to act as a as a catalyst to increase India's share in the Asian MICE market, and bring New Delhi into the league of Shanghai, Hong Kong and Singapore in the exhibition market, Rajesh Kumar Singh, chairman of the India International Convention & Exhibition Centre (IICC) Ltd, wrote in the company's 6th Annual report in FY24.

IICC is a government-owned company that built Yashobhoomi. It was also expected to generate over 500,000 direct and indirect employment opportunities, according to the report.

"Everybody wants to host events in India now," said Girish Vanvari, founder at Transaction Square, a boutique consulting firm. "Earlier, all the road shows and auto shows were in Germany, chemical shows were in Switzerland, etc; now, that has changed. People want to showcase it in India."

"In terms of location in Mumbai, there should be proximity to the airport, but also space. Like BKC gets crowded, even the airport area can get choked," Vanvari added.

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India's convention centres have rivals in several Asian countries.

The National Exhibition and Convention Center (NECC) in Shanghai, covering 15.8 mn sq. ft, consists of exhibition halls, the NECC Plaza, office buildings and a top hotel. The 3.2 mn sq. ft Hong Kong Convention and Exhibition Centre, located near the renowned Victoria Harbour, has been the go-to venue for over 51,000 events since its opening.

The Suntec Singapore Convention & Exhibition Centre, with over 0.2 mn sq. ft of exhibition space and 0.16 million sq. ft of flexible meeting spaces, houses over 1,000 shops, 300 restaurants, 6 museums and the world-class performing arts centre, Esplanade-Theatres on the Bay.

Convention centres that operate over decades also help business families build long-term goodwill in the minds of the public. For instance, Birla Matoshree in Mumbai, which is just a small convention hall, has become an iconic centre where many large corporates conduct their shareholder meetings.

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