Arvind Smartspaces eyes Rs 1,000 cr revenue in next 4 years

Arvind Smartspaces, the realty arm of fashion and apparel firm Arvind, is targeting to cross the Rs 1,000-crore revenue mark in the next four years, a top company official said.

The BSE-listed firm, which is currently present in Ahmedabad and Bengaluru, plans to explore opportunities in two more cities in the next four years, Arvind Limited executive director Kulin Lalbhai told PTI here.

According to him the implementation of the real estate regulatory Act (Rera) and the goods and services tax (GST) has streamlined the real estate sector and brought a lot of focus on serious branded players.

"These legislations are likely to create more demand with more people moving towards primary ownership," he said.

The parent company entered the real estate business in 2010, but considering the growth opportunity in the sector, it decided to carve out a separate vertical to manage this segment, according to Lalbhai.

The company reported a revenue of Rs 160 crore last year and has been growing at 30 per cent year-on-year.

"We hope to cross the Rs 1,000 crore mark in the next four years," Lalbhai said.

The company will continue to focus on the Ahmedabad and Bengaluru markets and is exploring opportunities in Pune.

"We may add another city in the next four years but our strategy is to saturate the existing markets. Low and mid-income segments are our target customer bases and we will launch projects to cater to their demands," he said.

When asked if the company was planning to buy stressed assets to achieve its target of Rs 1,000 crore revenue, he answered in the negative.

"Our focus is clear that we want to grow through the greenfield route. We may either buy land or enter into joint development or even partner with private equity funds on project to project basis, but we do not intend to buy stressed assets," he said.

The company has already delivered six projects of around 2.3 million sq ft and has another eight projects totalling to 8 million sq ft under various stages of development to be completed over the next 3-4 years.

"Almost 4 million sq ft of projects will be delivered this year and we will continue to add more as we go ahead," said Lalbhai.