February 15, 2024

GUATEMALA CITY (TIP): In recent times, Indian companies’ interest and involvement in Guatemala, particularly across sectors such as pharmaceuticals, automobiles, business process outsourcing (BPO), and textiles, has increased.  The establishment of Yash Pakka Inc, with an investment of US $350 million, stands out as a noteworthy initiative, showcasing how Indian enterprises are effectively leveraging Guatemala’s strategic location to access markets in the Western Hemisphere. This endeavor has garnered attention from various conglomerates, with a recent example being a textile company making a substantial investment of approximately $300 million in Guatemala. The growing demand for the Guatemalan market among Indian businesses has spurred a series of Indian business delegations to explore new avenues for partnerships in the region. These developments have further attracted companies like SRAM & MRAM to explore opportunities in this dynamic region.

SRAM & MRAM, a company under Hiranandani Group, has shown a keen interest in investing a significant amount in various infrastructure development projects across Latin America, particularly in the northern triangle region. SRAM & MRAM is a United Kingdom-based company with branches in several countries. The company has its core competencies in Agro-products and Information Technology, Hedge Fund Management, FOREX Management, Hospitality Services, etc. Recognizing the immense potential within the Latin American market. SRAM & MRAM, through its subsidiary company, Lakshmi Capital has reached out to the Embassy to seek insights into market dynamics. The company has pledged to invest a substantial total amount of US $17 billion, with a significant portion, amounting to US $10 billion, earmarked for the, namely the Guatemala Inter-oceanic Corridor. This project is planned to be structured under the Build-Operate-Transfer (BoT) model.

On February 13, 2024, a significant milestone was reached with the official signing of a Letter of Intent between M/s Grupo Odepal, S.A. and M/s Lakshmi Capital, representing an investment commitment of US $10 billion for the construction of the Guatemalan Interoceanic Corridor (GIC). This ambitious project aims to develop a state-of-the-art Multimodal Transport System stretching across a land strip spanning 372 kilometers in length and 140 meters in width, effectively connecting the Atlantic and Pacific Oceans.

The GIC project encompasses several key components, including the establishment of two new deep-water ports on each coast of Guatemala, which will be linked by a double-track railway system. Additionally, a pipeline network will be constructed for the transportation of hydrocarbons coast to coast, complete with storage tanks and buoys in the ports to facilitate efficient operations. Furthermore, the GIC will feature six strategically distributed industrial, commercial, and services zones along the inter-oceanic land strip, aimed at promoting economic growth and facilitating trade. Moreover, the project will provide various ancillary services to support the region’s development, including the implementation of water collection and distribution systems, the establishment of an electricity generation and distribution network, deployment of fiber optic connections for enhanced communication infrastructure, ecological development and compensation initiatives, establishment of tourism promotional centers, and improvement of people transportation facilities.

In addition to the GIC project, the company is also involved in significant developmental projects in the Municipality of Xela, with the signing of five additional impactful projects totaling an investment of US $1.2 billion. These projects include the implementation of a hydroelectric system, a cable car system, supply of 7000 buses, construction of a waste management plant, and development of a 75MW solar energy plant in the region. Embassy of India in Guatemala acknowledges the potential impact of Indian involvement in the region for which it proactively supporting these projects in the region by exploring avenues for the participation of Indian companies in significant infrastructural endeavors within the area.