Godrej Properties will focus on low-cost housing in various cities and look at the rural markets to grow its household products business, Godrej Group's Chairman Adi Godrej said here on Friday.
“Godrej Properties, one of the few listed companies in our group, has taken up a different business model of forming joint ventures with land owners, either sharing revenue from sales or space developed.
In Bangalore alone, we will invest Rs. 2,000 crore over five years developing different categories of low- to mid-level housing with some commercial space included. In the gated villas category, we are jointly developing a property with actor Sanjay Khan close to his spa-hotel,” Mr. Godrej said.
For Godrej, ‘low-cost housing' would mean those costing Rs. 20 lakh or less per unit and talks were on with some banks, usually reluctant to finance such houses, Mr Godrej said.
“Any follow-up public issue for Godrej Properties may be only after two years and if we really need additional capital,” Mr. Godrej said.
One of the largest projects taken up is within the municipal limits of Ahmedabad, with 40 million sq. ft. of residential and commercial space, with pricing in the low- to mid-level. Besides projects already launched in Bangalore, an MoU was expected to be concluded shortly to develop 50 acres in the northern part of the city.
On the FMCG front, the acquisition of Sara Lee had added to the portfolio and “we may look at others, especially in the household products category, even companies in the developing markets,” he said.
Mr. Godrej earlier addressed the CII Brand Summit 2010 as a key note speaker.