Essar Group to invest Rs. 4,000 crore in property

Posted By: Religare
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Essar Group to invest Rs. 4,000 crore in property
A potential subsidiary of the Essar Group, Equinox Realty is chalking out a plan for developing residential set ups across all over India within an investment budget of Rs. 4,000 crore. 

Sometime in the end of 2011, the realty arm of this group is expected to launch a million sq. ft. housing project in Thane district near Mumbai and around a 1.4 million for positioning a residential entity in Bangalore. Also a techno-park in Bangalore and combined project in Nagpur are in pipeline for the coming year. Around 2008, a Rs. 1,200 crore worth business park was also acquired by Essar Group from Ashok Parimal Group which stands effective from last three years on 1.2 million sq ft ground of Kurla, Mumbai.

"We have committed around Rs 3,500 crore to Rs 4,000 crore across various projects and already pumped in a sizeable chunk of that," said Cherag Ramakrishnan, chief executive officer, Equinox Realty Holdings.

Similar projects have been lined in for other states of India such as Jharkhand, Madhya Pradesh and Gujarat that would cover almost 8 million sq. ft of the crest.

"The idea was to be operationally capable before launching big projects. The captive projects are not the big revenue earner for us, they are more for our engines to get oiled before we set out," he said.

Unlike others who view that there is an ample need for homes in faster developing states or towns, Equinox seems to be heading at a steady pace. Ramakrishnan adds.

"We are going slow on the launches. The idea is that within 12 months, we want to launch one project every year. We are here to build small volume, reasonable value and good quality properties."

The next project that follows completion of residential projects talks about Ahemdabad, Hyderabad and Vadodra from where the company expects to build annuity and capital inflows from residential sales. 

Read more about: essar group, realty
Story first published: Friday, May 13, 2011, 12:31 [IST]
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