Shriram Properties Ltd. (SPL) aims to be a zero-debt company in 18 to 24 months, following an uptick in demand for mid-market housing segment, said a top official.
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"Currently, we have a net debt of ₹350 crore. About 21 projects are under construction. They will be completed and sold in 12-15 months, while we expect to clear the debts in 18-24 months," M. Murali, CMD, Shriram Properties Ltd., said in an interview.
According to him, the company has 45 ongoing projects in Chennai, Bengaluru, Vizag, Kolkata and Hyderabad totalling 51 million sq. ft. In Chennai alone, SPL is developing seven properties with 14 million sq.ft.
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Stating that the size of mid-market segment in Chennai was estimated to be 45,000 units, he said that SPL plans to sell 2,500 units in Bengaluru and 1,500 units in Chennai.
He also said that the prices of mid-market housing are set to rise by 10-15% due to increase in demand and input costs and dip in supply. The current price of mid-market housing is ₹5,000 per sq. ft.. SPL was also planning to increase prices by 8-10% in a phased manner from July.
SPL, which ranks among top 10 players, also hopes to touch ₹2,000 crore in topline against ₹1,600 crore registered last year. About 80% of revenue comes from residential segment and balance from commercial segment, he said.