Arvind SmartSpaces Ltd., the real estate arm of textile major Arvind Ltd., is planning to go national, riding on the brand equity and credibility of its parent. The company plans to invest ₹250 crore during 2019.
The company has announced plans to expand into two or more cities to grow its footprint and achieve its goal of ₹1,000-crore revenue by March 2022, a top executive said.
Horizontal expansion
“We have been growing at a rate of 25% to 35% CAGR but to achieve scale, we need to go for horizontal expansion. We have already decided to foray into Pune market with one project.
“We are also exploring the possibility of having residential projects in Hyderabad and Mumbai,” said Kamal Singal, managing director and CEO, Arvind SmartSpaces.
The company is already executing projects in Bengaluru, Ahmedabad and Gandhinagar, he said.
At the moment, the company is executing more than 13 million square feet of real estate projects in these markets.
Five projects, with a total of 2 million square feet space, have been delivered and the company is into all segments of the real estate, including luxuryious villas, mid-income and affordable housing. The per unit price starts at ₹30 lakh and goes up to to ₹12 crore for villas, company officials said.
The project in Pune would be a high-rise structure with 2 BHK apartments, and the company plans to have 5 to 7 more projects in Pune in the city in the coming years.
While Hyderabad is also under consideration and a decision will be taken in a few weeks. A project is also being planned in Mumbai in the next six months subject to availability of land. or joint development partner.
“We are very conservative in horizontal expansion and unless we see a potential, we will not go [for it]. We don’t build land banks and block capital. The expansion to Mumbai is planned because Arvind has a strong brand equity in this market.” Mr. Singal said.
For FY18, Arvind SmartSpaces, which is listed on the BSE, reported revenue of ₹128 crore and net profit of ₹30 crore. It has a debt of about ₹170 crore.
