 "Sanjay Dutt, TRIL MD and CEO")
Tata Realty and Infrastructure, a wholly owned subsidiary of Tata Sons, is targeting 15-20 per cent revenue growth with 26 million square feet (msf) of residential and commercial real estate developments in the near future. Amid its expansion plans, Managing Director and Chief Executive Officer SANJAY DUTT tells Prachi Pisal that the company is banking on prime locations, robust infrastructure, and the Tata brand’s reputation. Edited excerpts:
What does your overall portfolio look like?
Our portfolio is strategically diversified across three key verticals: residential, commercial real estate, and infrastructure.
In the residential segment, we have successfully delivered over 30 msf of built-up space, with an additional 5.7 msf currently under development across major urban centres like the National Capital Region (NCR), Mumbai, and Bengaluru, among others. Beyond this, 14 msf is in the design and approval stages, with launches expected over the next two to three years across various locations in India.
Our commercial portfolio is another cornerstone of our business. It features 9.4 msf of completed and leased spaces, complemented by 3.6 msf under active development. Looking ahead, we have ambitious plans to develop an additional 12 msf of commercial assets.
In infrastructure, we have developed 350 kilometre (km) of roads and are currently constructing a 23-km Metro line in Pune, linking Hinjewadi and Shivaji Nagar. This Metro project is slated for completion by the end of this calendar year.
What is your current land bank in terms of gross development potential?
Our current land bank has a gross development potential of roughly 33 msf, encompassing both residential and commercial opportunities. From this land bank, we estimate residential revenue of ₹18,000 crore and commercial rental income of at least ₹2,000 crore upon full development of our planned 20 msf commercial portfolio.
The land is geographically diversified, covering key markets such as Mumbai, Chennai, Bengaluru, Delhi, and Pune, with additional projects in international locations like Sri Lanka and the Maldives, as well as future inventory in cities such as Bahadurgarh and Bhubaneswar.
Is there any top-line guidance for the upcoming financial year?
While our business plan for the upcoming financial year is still being finalised, we foresee residential revenue in the range of ₹2,500-3,000 crore for 2025-26. Over the coming years, we expect a steady growth trajectory of 15-20 per cent annually.
What is the status of the denotification of certain spaces in special economic zones (SEZs) from your portfolio?
Two of our key commercial assets — located in Chennai and Gurugram — are undergoing phased denotification. These spaces have been partially denotified and leased, with full denotification expected within the next two years.
Do you have any real estate investment trust (Reit) ambitions in the coming years?
We remain open to exploring Reit options. However, any decision in this regard will be taken after thorough deliberations by our management and board. At present, we do not have immediate plans to pursue a Reit listing in the current financial year.
What factors are driving your target of 15-20 per cent top-line growth?
Our growth trajectory is anchored in several key factors, including prime locations, robust infrastructure such as Metro and highway connectivity, and our reputation for governance, quality, and trust. The Tata brand instils confidence among customers, ensuring timely delivery and peace of mind. These attributes have consistently contributed to our strong sales performance and positive outlook.
Of your total revenue, how much comes from your real estate business versus your infrastructure business?
Currently, each of our business verticals — residential, commercial real estate, and infrastructure — contributes roughly one-third of our total revenue, with residential accounting for a slightly larger share. We expect this balanced distribution to remain steady over the next four to five years.
What is the strategy behind your operations in the Maldives and Sri Lanka?
Our operations in the Maldives and Sri Lanka were part of strategies implemented years ago. Having completed our portfolios in these markets, we are now focused on leveraging the land banks we hold in these regions for further development.
In 2023-24 (FY24), profit growth was somewhat sluggish. What were the reasons for this?
Our profit growth in FY24 was impacted by substantial investments in approvals and premiums. However, these investments position us for strong growth in the coming years. The launches resulting from these investments will drive our upward trajectory.
For your infrastructure business, what kind of road projects are you looking at?
We remain selective in pursuing road projects and evaluating opportunities based on government offerings. While I cannot comment on specific projects at the moment, we continue to explore viable prospects in this segment.
Amid your expansion plans, are there any fundraising plans?
We do not have any fundraising plans at this time.
Which segments are your priority in residential real estate?
Our residential offerings span luxury, premium, and mid-segment housing, with a modest presence in the affordable housing segment. Moving forward, we will primarily focus on the mid, premium, and luxury categories while simultaneously expanding our commercial portfolio.
Our commercial developments include information technology parks, office spaces, retail developments, and hotels, further underlining the breadth of our market presence.
Global private equity firms are actively entering India’s office market. What is your perspective?
Our portfolio has attracted several esteemed global investors, both past and present. This trend is set to continue, as India’s market and economy are on a strong growth trajectory.
Over the next four to five years, we expect an additional 300 msf of commercial space to be developed, making this an opportune time for investment. What makes these opportunities particularly attractive is that a significant portion of the commercial spaces are leased by globally renowned Fortune 500 companies. Such tenants enhance the value of these properties as investment assets.
Investors have the flexibility to explore exit strategies through Reits or company listings, making this a dynamic space for both new and existing stakeholders.
What is your outlook on the commercial real estate market?
The commercial real estate market is seeing robust growth, with the total market size projected to expand from the current 750 msf to 1 billion square feet within the next four to five years. This growth is driven by India’s economic expansion and the increasing demand for quality commercial spaces.
While challenges exist — such as rising land valuations, delays in government approvals, and a shortage of skilled construction workers — the sector remains resilient. Reputed developers continue to maintain high standards of safety, quality, and sustainability, ensuring the market’s strength.
