Tata Realty to invest 4,000 cr in residential projects
Tata Realty and Infrastructure is investing around Rs 2,000 crore each into residential and commercial projects over the next two years, including re-launching the stalled Mulund project in Mumbai, on the back of a significant growth in sales last year and the steady pick-up in demand, a top company official has said.
Mumbai: Tata Realty and Infrastructure is investing around Rs 2,000 crore each into residential and commercial projects over the next two years, including re-launching the stalled Mulund project in Mumbai, on the back of a significant growth in sales last year and the steady pick-up in demand, a top company official has said.
The Tata Group firm, which focuses on residential, commercial and retail properties in the realty space and large infrastructure projects, is witnessing higher demand, especially for ready-to-move-in residential units now. It has added over 1,500 construction workers during the pandemic, taking its overall headcount to over 5,000 now.
Before the coronavirus pandemic, it had only 3,500 workers and over 670 employees. "We had the best sales in 2020-21, with a revenue of over Rs 1,500 crore, which is 120 per cent more than what we had targeted for the year given the pandemic." "On an annualised basis, revenue grew 15 per cent over 2019-20; and in volume terms, we sold 1,300 units," Sanjay Dutt, managing director and chief executive of Tata Realty, said.
Dutt added that the company had the best-ever sales in the fourth quarter of 2020. On the current demand scenario, he said that from July onwards, they have been witnessing steep recovery. "Whatever we lost in Q1 has already been recovered in Q2 and expect to cross last year numbers in Q4 and to close the full year with a revenue growth of over 20 per cent," he said. The company nets around 70 per cent of its sales from the affordable and premium units and the remainder comes from luxury projects, Dutt added. "We've equal focus on residential and commercial segments when it comes to capex (capital expenditure). Accordingly, we have lined up Rs 2,000 crore each for residential and commercial projects over the next 24 months," he said. He said the company has four residential projects under-construction now — the Serein in Mumbai, the Eureka Park and La Vida in NCR-Delhi, and the 88 East in Kolkata with over 2,500 units. Dutt did not disclose the potential revenue from them or the investments. "We have a diversified portfolio of 40-45 million sq ft under-construction, which are a mix of luxury and premium projects with the Serein, the Eureka Park and La Vida in the premium category and the 88 East in the luxury segment," he added.
