Mahindra Group steps up focus on real estate, hospitality for growth

Mahindra Group on Monday announced a dedicated strategic focus on its real estate and hospitality businesses, Mahindra Lifespace Developers and Mahindra Holidays & Resorts, identified as "growth gems" by the group.

 

The group stated that over the last five years, it has seen significant momentum across all its businesses, with its "growth gems" being an important pillar of this growth. Several of these businesses have surpassed the 5X growth expectation over this period and are well positioned to achieve further growth, the group noted.

 

Anish Shah, group chief executive officer (CEO) and managing director (MD), Mahindra Group, said: "Both Holidays and Lifespaces businesses have tremendous potential. As we move into the next phase of growth, we have been evaluating how to harness the synergies between them to further strengthen the growth trajectory. In this context, we are pleased to announce a dedicated strategic focus on Holidays and Lifespaces sectors aimed at accelerating growth and realising operational synergies across these identified growth gems."

   

"Our real estate business, Mahindra Lifespaces, has been one of our standout growth gems," the group noted.

 

Since FY20, Mahindra Lifespaces' residential pre-sales have grown 5X from ₹700 crore to ₹3,500 crore. In the last three years, the business has grown its gross development value (GDV) from ₹8,000 crore to ₹50,000 crore, which sets it up to achieve 14X pre-sales growth in this decade.

 

Mahindra Lifespaces' industrial segment has also delivered strong performance during this period, progressing from losses to a profit of ₹300 crore in the last fiscal year, the group stated.

 

During the same period, Mahindra's hospitality business, Mahindra Holidays, has also made significant progress. With over 3 lakh vacation ownership members, the business is a leader in this space and has added over 1,700 rooms, the group noted.

 

"The business is expanding from vacation ownership into leisure hospitality, with the aspiration of becoming India's leading hospitality player. We recently launched Mahindra Signature Resorts, which is our entry into luxury hospitality," Mahindra said.

 

As part of the restructuring, Amit Sinha, currently MD and CEO of Mahindra Lifespace Developers, will be appointed CEO-Holidays and Lifespaces sector from a future date to be determined. He will take up the role after a new CEO is appointed at Mahindra Lifespaces.

 

The leadership and reporting structures for the businesses will be aligned as part of the implementation of the new sector structure, the group said.