HomeLatestSanofi India to Offload Powai HQ for ₹250 Crore

Sanofi India to Offload Powai HQ for ₹250 Crore

Sanofi India, the local subsidiary of the French pharmaceutical giant, has announced its decision to sell its 150,000 sq ft headquarters located in Powai, Mumbai. The property, which serves as the company’s country headquarters, is anticipated to fetch around ₹250 crore based on current market valuations, according to sources familiar with the transaction.

This move comes as Sanofi India has already secured a new office space in the Vikhroli suburb through a long-term lease. The new office will house the Sanofi Consumer Healthcare division and will provide additional space to accommodate the company’s growth and the relocation of other operations. A source close to the matter indicated that the decision to monetise the Powai asset has been under contemplation for nearly a year, and the Vikhroli lease aligns with this overarching strategy. Sanofi India acquired the custom-built office building in Powai from L&T Realty in 2013, subsequently shifting its headquarters there in 2015 from a smaller office in Aventis House, Andheri. The Powai office is situated within the L&T Business Park, which also hosts major companies such as JP Morgan and L&T Infotech.

In May 2023, Sanofi’s board approved the demerger of its consumer health business into a distinct legal entity. This strategic decision aims to provide the new entity with greater autonomy to pursue growth strategies independently. Shareholders endorsed the demerger in December, and it received clearance from the National Company Law Tribunal, Mumbai, in May 2024, paving the way for the establishment of Sanofi Consumer Healthcare Ltd, which will operate from the newly leased Vikhroli office, currently undergoing fit-out. The Indian office sector remains resilient, demonstrating strong demand despite global economic challenges. Recent reports indicate that the office market achieved record performance in the first half of the year, with gross leasing reaching 33.5 million sq ft—a remarkable 29% increase from the previous year and surpassing the prior first-half record of 30.71 million sq ft set in 2019.

Sanofi India’s strategic realignment and asset monetisation are part of its broader efforts to optimise operations and capitalise on emerging opportunities within a dynamic market landscape. By relocating to a more strategically positioned office in Vikhroli, Sanofi demonstrates its commitment to remaining agile and responsive, ensuring sustainable growth and operational efficiency.

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