Leading diamond jewellery player Gitanjali Group, which recently entered the realty business, expects Rs. 525 crore from two projects over the next two-and- a-half years, a top company official said.
Gitanjali Group, under its wholly-owned subsidiary Gitanjali Infratech, is developing around 8 lakh sq. ft. of land in suburban Mumbai, which includes a luxury residential project.
“We plan to develop around 4 lakh sq. ft. space each in Andheri East (commercial) and Borivali (residential). We are expecting around Rs. 125 crore from the Andheri project, and around Rs. 400 crore from the residential one,” Gitanjali Group’s Chairman and Managing Director Mehul Choksi told reporters on the sidelines of a FICCI event here today.
However, Choksi said revenues would flow-in only after 24 to 30 months as the properties would take some time to be developed.
Currently, of the 4 lakh sq. ft. area in Andheri about 1 lakh sq ft is being developed. The company is in the process of unlocking the value of the remaining space, Choksi said.
The group has so far invested Rs. 100 crore in the realty business.
On its Special Economic Zone (SEZ) projects, Choksi said the company has currently put some of its projects on hold due to regulatory issues.
“We had initially planned to set up 7 SEZs, of which the first one in Hyderabad called Hyderabad Gems SEZ Ltd has been set up,” Choksi said, adding the group is going slow on this business as it is awaiting clarity on government policies.
Spread across 275 acres, the Hyderabad SEZ houses about 75-100 diamond, colour stones, pearl, semi-precious stones, jewellery and jewellery-watch manufacturing units. Hyderabad Gems SEZ Ltd. also has a training centre for manufacturing jewellery and cutting and polishing of diamonds.
It plans to start its second SEZ in Panvel for which the company has already acquired 35 acres of land. However, Choksi did not give any time-frame for this.
The group has plans to set up two more SEZs at Nanded and Aurangabad in Maharashtra, he said.