Shriram Properties Targets ₹5,000 Crore in Annual Sales by 2027, Unveils New Brand Identity SPLNxT
Bengaluru real estate news: Shriram Properties aims to double sales, triple revenue, and quadruple profits in the next three years, driven by mid-income housing sales and consolidation in the real estate sector.
Shriram PropertiesReal EstateBengaluruMidincome HousingSplnxtReal Estate MumbaiAug 21, 2024
The company's Executive Director and Group CEO, Gokul Krishnan, revealed that Shriram Properties aims to scale up its annual sales from 4.5 million square feet last year to 8-9 million square feet. The company would have sold close to 20 million square feet cumulatively in three years, with Bengaluru alone accounting for 7-8 million square feet, Chennai for about 5-6 million square feet, and Kolkata for about 3-4 million square feet.
During the 2023-24 fiscal year, Shriram Properties clocked a net profit of ₹75 crore, while the company's total income came in at ₹987.35 crore. Sales value during the 12-month period touched ₹2,362 crore.
As the company enters its 25th year of operations, Shriram Properties has unveiled a new brand identity - SPLNxT - with an enhanced focus on the mid-market and mid-premium segments. Going forward, over 90% of the brand's portfolio (from 67% earlier) will comprise mid-market and mid-premium projects.
Shriram Properties defines the mid segment as comprising homes ranging between ₹50 lakh - 1.5 crore, while the mid-premium bracket spans between ₹1.5 - 2 crore. The company is also planning to foray into the Pune market, with the first project slated to be launched soon.
The company has a pipeline of 42 projects with a development potential of 42 million square feet, of which 24 million square feet is under various stages of development. Shriram Properties is targeting to double its future project inventory from 18 million square feet now to over 35 million square feet in the next 18-24 months.
The company estimates a capital requirement of ₹300-500 crore for its three-year growth plan and believes that internal funds shall adequately meet the demand. The joint development model could account for 50% of the company's portfolio during this time. Shriram Properties is on track to launch three projects in Bengaluru in the ongoing quarter. The company has also announced plans to launch two mobile applications, namely Shriram Parivaar and Shriram Synergy, for its customers and channel partners, respectively.
Frequently Asked Questions
What is Shriram Properties' growth plan for the next three years?
Shriram Properties aims to double its sales to ₹5,000 crore, triple revenue to ₹3,000 crore, and quadruple profits to more than ₹250 crore in the next three years.
What is the company's focus in terms of market segments?
Shriram Properties is focusing on the mid-market and mid-premium segments, with over 90% of its portfolio comprising these segments.
Is Shriram Properties planning to expand its presence to new cities?
Yes, the company is planning to foray into the Pune market, with the first project slated to be launched soon.
What is the company's project pipeline like?
Shriram Properties has a pipeline of 42 projects with a development potential of 42 million square feet, of which 24 million square feet is under various stages of development.
How does the company plan to fund its growth plan?
The company estimates a capital requirement of ₹300-500 crore for its three-year growth plan and believes that internal funds shall adequately meet the demand.
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