Business Standard

Hiranandani plans to invest Rs 3K cr, expects 25% residential biz growth

Hiranandani Group is evaluating few projects under the joint venture or joint development agreement and aims to strategically extend its presence to regions with favourable conditions

Niranjan Hiranandani, CMD, Hiranandani Communities

Niranjan Hiranandani, CMD, Hiranandani Communities

Aneeka Chatterjee Bengaluru

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The Mumbai-based leading realtor, Hiranandani Group, plans to allocate about Rs 3,000 crore towards the expansion of projects during FY25, as it expects a robust growth of about 25 per cent year-on-year in the residential real estate business during the same period.

The Hiranandani Group is evaluating a few projects under joint venture or joint development agreements and aims to strategically extend its presence to regions with favourable conditions such as connectivity, infrastructure, demand, and customer base.

“The market is quite bullish, and our projects are well-received. If the market continues to perform as it is currently, we are confident and do not foresee any difficulty in achieving the targets,” Niranjan Hiranandani, chairman of the Hiranandani Group, told Business Standard.

Furthermore, Eleva by Hiranandani, the company’s independent development management consultancy, plans to broaden its Mumbai portfolio with three new residential projects, complementing existing ventures in Oshiwara and Versova.

“The idea behind Eleva is to act as a development manager for projects we have undertaken. Under the brand, we manage design, sales, and marketing of entire buildings. Our target is to add three more projects, each with 4-5 lakh square feet. We are currently in discussions with two and hope to finalise them in the next few weeks or months, before the end of this financial year,” said Hiranandani.

The Group also highlighted margin optimisation efforts, noting internal fund generation alongside support from banks and financial institutions for ongoing projects. “However, once we have achieved 30-35 per cent of sales in a project, it becomes self-sustaining as the funds remaining in the escrow account under RERA (Real Estate Regulation Authority) are sufficient to complete the projects,” Hiranandani explained.

Additionally, the Hiranandani Group-backed data centre and cloud services firm, Yotta Data Services, is adding two new buildings to its 'D1' data centre in Greater Noida, while also commencing work on an 'edge' data centre in Guwahati. Both these planned expansions are expected to be completed and operational by the end of 2024.

“We anticipate a growth trajectory including top line and bottom line at about 20-25 per cent compounded annually in FY25. This estimate does not include the turnover from Eleva, which will be accounted for separately,” Hiranandani added.

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First Published: Apr 04 2024 | 4:44 PM IST

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