Sees its property development business as a major thrust area
By Vipin Agnihotri
Theoretically speaking, Godrej Group is one of India’s largest conglomerates, a leading manufacturer of goods and provider of services in a multitude of categories: home appliances, consumer durables, consumer products, industrial products and agri products and real estate, to name a few.
A recent survey has come to the conclusion that 400 million people across India use at least one Godrej product every day. The Godrej group stands in a strong position at this point of time with annual sales in excess of US $1.4 billion, a workforce of approximately 20,000 and a strong diversified portfolio.
In its 16 years as a focused real estate development company, Godrej Properties Limited (GPL) has established a strong presence in the real estate market. The Godrej Group sees its property development business as a major thrust area. It is worth mentioning in this regard that the Indian property development sector is already amongst the fastest growing in the world and in the coming decades is likely to emerge as one of the largest in the world.
The Company believes that the abolition of ULCRA and freeing of FSI are two steps, which will allow for dramatic improvement in the availability of housing and making prices more affordable. If experts are to be believed, ULCRA and restrictive FSI in Maharashtra are the main factor behind acute shortage of real estate and mismatch in demand and supply in the city. “We need to make changes in real estate regulations and modernize them. All big cities are growing taller. We need to do away with the antiquated laws,” pointed out Adi Godrej, Chairman, Godrej Group.
It has come into the notice of The India Street that company is looking at an Initial Public Offer (IPO) in the second part of this financial year wherein Godrej Group is expecting to dilute ten percent of the total value of Godrej Properties. The money will be utilized for new projects of company. In theory, Godrej Properties last financial year was Rs 45 Crore.
“We need to raise capital as otherwise Godrej Properties, a private company, will not be able to grow strongly. We will provide for the residential user a very reliable product. All our projects have a great emphasis on environment and ecology. We will devote space to amenities, recreation, sports in every project,” pointed out Godrej.
The pivotal factor here is that even as there are companies who have established a name for themselves, brands have not become an important part in real estate. In short, both consumers and investors need to be conscious about this. Godrej Properties is planning to build townships in metropolitan areas. Initial signs are that each township would be from 50 acres to 200 acres.
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