Shapoorji Pallonji Group's Realty Arm to Drive Growth, Contribute 30% to Revenues by FY27
The Shapoorji Pallonji group's real estate arm is expected to contribute 30% to the group's revenues in the next 2-3 years, driven by new launches and growth in the sector.
Shapoorji Pallonji GroupRealtyReal EstateConstructionInfrastructureReal Estate MumbaiSep 01, 2024
Currently, the real estate arm contributes 20% to the group's $5-billion (over Rs 41,000-crore) revenues. According to Venkatesh Gopalakrishnan, director, group promoter's office, and MD & CEO, Shapoorji Pallonji Real Estate (SPRE), the group's mindset is aligned to real estate, which will be one of the biggest growth engines going ahead.
The group has put together land parcels and has 90% of the approvals in place, with the balance 10% expected in 3-6 months. SPRE is looking at revenues of Rs 18,000 crore by FY28, with some large projects in the pipeline.
The company is looking to launch residential projects in Colaba, Juhu, and other locations in Mumbai, as well as in Pune. The project in Colaba will be the largest in the country, with an area of 7 million sq ft and a revenue potential of Rs 50,000 crore.
The company's mid-income housing arm, Joyville, is also looking to launch three projects in FY25 in Pune, Thane, and Mumbai. SPRE has a debt of Rs 6,500 crore and is looking to repay Rs 2,500 crore in FY25.
Frequently Asked Questions
What is the expected contribution of the real estate arm to the Shapoorji Pallonji group's revenues in the next 2-3 years?
The real estate arm is expected to contribute 30% to the group's revenues in the next 2-3 years.
What is the current debt of Shapoorji Pallonji Real Estate (SPRE)?
SPRE has a debt of Rs 6,500 crore.
What is the revenue potential of the project in Colaba?
The project in Colaba has a revenue potential of Rs 50,000 crore.
What is the company's mid-income housing arm called?
The company's mid-income housing arm is called Joyville.
What is the expected repayment of debt by SPRE in FY25?
SPRE is looking to repay Rs 2,500 crore in FY25.
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